Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1904-02-18
WEEK in FINANCIAL WORLD.


WEEK IN FINANCIAL WORLD.
Developments of the past week have
tested the soundness of the stock mar
ket. The results have been eminently
satisfactory and have served to prove
the beneficial effect of the heavy
liquidation Of 1903 Among the most
important influences has been the out
break of the Russo-Japanese war, the
Baltimore fire, the collapse of the cot
ton speculation together with the float
ing of large amounts of new railroad
securities. Whatever strain was occa-
stoned. however, failed to disclose any
weak points of importance, is the opin-
ion of Henry Clews Mr.. Clews also
states that had these conditions arisen
year ago they would have doubtless
produced panic, whereas now they
have had but transitory effect.
Mr.. Clews attaches the most import
ance to the war influence. OF this he
says:
Japanese early victories encourage
hopes of short war as well as check
to Russian encroachments, which lat
ter are certainly adverse to the pro-
gress of civilization. In view of gem
eral sympathy with the cause of Japan
both at home and abroad Japanese vic
tories are likely to have stimulating
effect upon the stock markets, while
Russian success might, on the contra
~, exert depressing influences. Thus
far none of the worlds money markets
have seriously felt the war, the worst
effect falling upon Paris, where Rus
sian bonds are largely held. 1t has
been estimated that France holds not
less than $1,200,000,000 of Russian
bonds; so that Russia's chances of in
creasing her borrowings from her best
friend on good terms are not very bril-
liant Later on Russia may make a
better show of resistance, but the SUI
perior alertness of the Japanese has
already won them important advan-
tages.
He notes the fact in his financial
review for the week that the disas-
trous fire at Baltimore has brought to
its plucky citizens abundant sympathy.
He does not look for that calamity to
have serious effect on the stock
market and in calculating his reasons
says:
The Baltimore fire, calamity which
has brought her plucky citizens
abundant sympathy and consideration,
will not be a serious stock market
influence. The best estimates are
that the losses to insurance companies
will fall below $50,000,000, a considera-
bic portion of which must be paid by
foreign companies. These losses will
moreover be paid gradually; in many
cases out of surplus funds or by tenn
porary loans; SO that no great amount
of securities will be forced for sale to
pay losses, which fall chiefly upon
strong companies able to meet all
these obligations without difficulty.
The most serious consequences to Bal
timore will be the arrangement and
loss of trade resulting from such a ca
lamity. These losses cannot be made
good; but Baltimore will be Rebuilt a
better and more beautiful city; and
her business men are to be admired
for the courageous and resolute spirit
in which they are conauering ADVERSE
disaster; for labor, steel and building
materials will be in large demand for
months to come.
Regarding the collapse of the cotton
speculation he shows that the govern
ment report on cotton ginned, issued
last Tuesday, proved conclusively that
the bull campaign on that product had
been conducted along mistaken lines.
Some of the bull leaders had predict
ed crop as low as 100000 bales,
while the government report showed
that 100000 bales had been ginned
up to January is with considerable
portion Of the crop yet to be heard
from This information quickly put
an end to short crop theories. Mr..
Clews points out that in this quarter
there has been no destruction of prop
erty. the losses being simply paper
profits.
The extraordinary borrowings of big
railroad and other corporations is the
only other condition which Mr.. Clews
believes induces caution. Within the
past few weeks there have been placed
on the market $20O,0O000O of notes,
bonds and other obligations. They
are for the most part first class securi-
ties, but they are turning floating CAPT
tai into fixed capital at such rate
that if carried much farther halt will
have to be called. The railroads have
been compelled to make these large
loans to meet the immediate demands
OF traffic SO that investments may be