The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-01
THE YEAR 1908 in STOCKS
FINANCIALLY PAST YEAR MOST MO-
MENTOUs OF THE DECADE.
Too Much "High Finnnciering" In
jured Public Confidence, but Outlook
for 1904 Is GOod-Resume of Year.

w ElLltn IF the journal by w. WAITS baRleV,
OF A. r. Thompson * Col
The year 1903 will go down in history as
probably the most momentous-fnancially
speakng-of the last decade. The beginning
of 1903 witnessed a peculiar state of affairs.
The stock market had been booming,
prices advancing, irrespective Of merit or
value, and the entire country pitched up to
a gambling fever. Money, which, after all,
is the all-controlling factor, was loaning on
call as high as 10 per cent, with securities
selling at an average on a 4 per cent. basis.
What was the result? There is only one
answer that being that money which could
be employed at 10 per cent. naturally would
not seek securities paying 3hA per cent. The
larger holders of securities, realizing this
fact, sold their securities ard practically
started the greatest continuous decline ever
witnessed in Wall street.
1t has been truly said that Americans are
extremists-they either carry prices too high
in a bull market, or too low in a selling one.
All through the summer things went from
bad to ~worse-banks failed, trust compa-
MES suspended, five large stock exchanges
failed in New York, accompanied by labor
agitations, strikes and blackmail. In addi-
ton to this we had a good taste of modern
inanciering IN the United States Shipbuild-
ing expose.
PUBLIC CONFIDENCE INJURED.
It is unnecessary to go into details, as the
public, unfortunately for some of them,
are very we'll acquainted with the facts.
Suffice TO say that it will be some time be-
fore public confidence is sufficiently restored
to again take faith in any industrial corpo-
ration, underwritten or promoted by this
coterie OF inanciers.
For quite an extended period the specu-
lative fever ran high-sober-minded bust
ness men got into the whirl of excitement,
staked everything on the cast of the die,
and. in many instances, owing to lack of
judgment and experience in such matters,
found the results upon the loss side of the
ledger. rather than on the profit side. which
they had anticipated. Promotion schemes
were inaugurated, which, in vast proper
tons. were almost beyond the limit Of hu-
man comprehension. The result of this run
ming riot of speculation and the creation of
fictitious values was none other than eX-
pected by any sober-minded observer of the
situation. But this came to an end with no
beneficial effects upon general business in
terests. AS for speculation itself il was
benefited by the end of the period of over
Taken altogether. there is far more wealth
in the country than ever before, and IL con-
tinues TO grow day by day. 1t is true that
"the bucket which went TO the well once
too often was finally broken" and that a
speculative fund of large proportions
changed hands. Yet the money with which
these operations were carried out still ex-
lists and will be ready to do business upon
the Stock Exchange when we have got out
of the rut Of pessimism into which we fell
after the passing of the getting rich
period"
OUTLOOK FOR 1904.
Now. enough for the past. let us look at
the year 1904. At the beginning we stand
upon much firmer ground; money Is ruling
easier, and 1t is a Wall-street axiom that
money returns to town in January" 1t
has almost always been so since time i'm
memorial and recent bank statements indi-
cate the same to be true to-day. The flow
of gold from Europe has been supplemented
by the return of cash from the West and
South, and although a slight money furry
is possible, owing TO the large disbursements
to be made in dividends, interest, etc, it
will be quickly passed, and, according 10
some of the best judges OF monetary mat
tiers in this country, the average rate of in
terest the coming year should not exceed
Az per cent.
Thus, we find, with enormous exports,
good crops, high prices for foreign products
and relatively low prices for securities, in
comparison with this time last year, the i'm
| mediate future should be a bright one. One
might add TO this maintenance of large rail-
road earnings, likelihood of their continu-
ance, as shown by recent reports, and the
probable curtailment of extraordinary oper-
ating expenses due TO the vast improve
ments made by the various roads in 1901,
| 1902 and 1903.
A feature upon which the pessimists of
Wall street seem to lay great stress is the
coming struggle for the presidency, but let
us bear in mind that this will carry no such
issues as those of 1896 and 1SoSissues that
called a halt on business and paralyzed in
| dustry throughout the land. This latter
point is a most strong one and too much
stress cannot be laid upon II.
1t is my belief that the bear market is
over and that money is TO be made by jul
dicious investments in the lower-priced
railroad issues.