Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-03-30
The FINANCIAL SITUATION.

The weekly letter to The Optic
from the banking mouse Of Henry
Clews Ia full Of optimistic prognosti
cations. The speculative activity
which had been pent up for months.
burst out with surprising strength
after the merger decision and the
Suny failure. Both OF these factors
had been important elements OF un-
certainty, and their elimination re.
leased forces that had long been walt
Ing for just such III opportunity.
The collapse of the powerful manip.
ulation In cotton, while disastrous 70
those closely connected, will be ben
efieial when the aftermath Is over,
inasmuch as this great staple will be
ruled once more by natural and not
artificial Influences which seriously
injured beth mill me and opera.
tors In all parts OF the world. The
south would have inevitably secured
good prices Tor cotton this year with
out the aid Of these dangerous specu-
iative operations, simply because the
worlds demands were overtaking sup
piles, which, SO far as the American
crop vas concerned, were strictly
moderate. BY a policy OF exaggera-
tion and excessive speculation prices
were carried To a dizzy height, the
effect OF which will be an unusual In
crease In acreage and less profitable
prices 70 growers for next crop than
they would have received under the
ordinary sway OF supply and demand,
The south would have enjoyed a
greater, a more permanent and a
more evenly distributed prosperity
without the cotton corner Of 1904,
which has produced nothing except
d forcible arrangement, the effects Of
which will be world Wide. not to speak
OF the immense stimulus given 10
developing other cotton regions al
competitors with America.
The most important factor N the
market has, OF course, been the merg
or decision. The powerful financiers
who devised that plan are wisely
seeking other and more Legitimate
devices. Some other way OF giving
The community Of interest fixity vii
nave 10 be provided. Meanwhile, the
Northern Securities company holdings
are TO be distributed pro rata, and
eventually a considerable part OF thu
enormous holdings Of Northern Pacific
and Great Northern which have beer
locked UP In the merger will be 70
leased. OF course, the disruption oI
the merger means d temporary dis
turbance Of the balance OF power o
more or less seriousness between
great rival corporations. Just wha
the final outcome will DO Is not easy
TO determine. though the sudden &C
tiyity In Union Pacific a suggestive,
aud created renewed fears OF a con
test for control.
In the general outlook fayoraal'
elements predominant. The wide
spread and pronounced recovery II
iron is, perhaps, the most auspiciou'
factor OF any, this industry still be
Ing one Of the most accurate OF bus
mess barometcrs. Prices OF iron an,
steel have advanced materially dur
Ing the past month, and furnaces an,
mills which had been idle for months
are starting up. With the breakup
Of spring construction work is beini
resumed, aud the prospects are for a
least several months better business
In the iron trade. II not longer. Tn
textile industry is also likely TO fee
the benefit 81 cotton being once mor'
governed By natural conditions. al
though besitancy must disappear
slowly until the final consequences o
the suliy failure are known. An
other favorable feature is the ease q
money, which promises TO continu'
until crop demands assert themselves
There ii more Or less expectation o
gold exports. but this Is usual Q