Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-05-03
CONDITIONS.


the Wall street banker, to The Optic,
says that In spite OF unusual gold ex-
ports, unfavorable crop conditions,
less satisfactory business reports and
frequent declines In railroad earnings
stock market values showed only q
moderate decline. Such a combina,
tion OF adverse conditions would ordin.
arily precipitate a sharp reaction and
afford the basis OF an active bear am
pign; but, as a matter Of fact, these
influences had relatively little effect
upon values, and outside OF the Steel
shares, which weakened under a grow
Ing belief that the preferred dividend
would be reduced, the market display
ed excellent resisting powers. This
was chiefly because liquidation has
thoroughly eliminated weak spots, and
apparently at the same time discount
cd any business reaction. It Is pretty
well recognized that values are now
generally upon a sound basis, for good
railroad shares are often selling below
intrinsic salue and upon a5 per cent
basis, while desirable short-time OBJ
legations are to be had upon q 4 IL
a 5 per cent basis; and though the In
vestment demand has been much cur
tailed BY recent business depression,
there is still . steady demand for
really desirable securities. The low
rates and abundance Of money have
largely cou~nteracted depressing in
fiuences, and to this fact, as well as
that current prices represent real
values. must be attributed the present
resisting qualities Of the market.
Til feature OF the week was the I'm
usually heavy exports Of gold, amount
Ing to about $4,000, 900. II we are not
mistaken, these are record shipments,
and they may have been stimulated
by preparations for payment for the
Panama canal. Aside from this spe-
cial demand, however. this Is the sea
son for gold exports, and the recent
decline in our merchandise shipments
foreshadowed an efflnx of gold. There
Is every probability OF this movement
continuing for a period. and no sur
prise need be expressed II We ship
considerably more gold this season
than for several years past. The
causes stimulating gold shipments jusi
now are a diminished trade balance
the Panama canal payments and an in
creased foreign demand for gold re
sulting from the war. The first anf
last Of these causes are likely to con
tinne for some time. and as the United
States now holds an ~unsuually heav,
supply Of gold and our bank reserves
are high. we can look upon the outflow
Of the precious metal with compare
tive indifference. n not satisfaction. al
Il Is simply going where 1t is mos
needed and where it will accomplish
the most good. The total shipments
thus far during this movement have
been about $1s,O00.O0O and as con
siderable arrivals OF Japanese golt
have been reported on the Pacific
coast III supply has not been depict
ed by that much, The bulk OF thil
gold has gone 70 Paris. suggesting
preparations for the Panama payment
though the reports Of a Russian LOAF
may have had something to do will
the rumor. Paris. however. is the chile
point Of strain. outside Of Russia AM
Japan: for France has not only sui
fered severely from depression OF Rus
sian bonds but is the most likely coun
try to furnish Russia further outsid,
financial aid when needed.
Domestic conditions have not beef
satisfactory as desired. The weathe
was unfayorable for agricultural or
erations. and the backwardness Of tn,
season Is anything but stimulating 4
either merchants or farmers. Still,
few days OF bright sunshine would d,
much 70 better the situation in thi
respect. In some departments Of bus
mess q better tone Is reported. notat
ly In the iron trade; In others NOR,
or less depression exists, especially ii
the textile industries. Operations OK
tending into the future are, however
conducted with much care and pru
dence. because or uncertainty regard
Ing crops. the elections and genera
business. Railroad earnings are show
ing more frequent declines 10 gross
but an encouraging feature is the be,
ter results in net earnings occasional
ly reported as growing out Of recen
outlays and improvements. The Out
look Is for d fair trading market, witt
moderate fluctuations In either diree
ton. Just now the market Ii excer
t~ionally dull, owing to the lack o
stimulating conditions and the distrus