Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-02-11
THE FINANCIAL SITUATIONS.

#& 80 a
The beginning Of hostilities il the
far east. the announcement that the
government wss making preparations
for payment o. So. 0 600 toward the
Panama caasl, and violent specuia.
tions ia coffee. cotton and wheat are
lalg mentioned Id the financial letter by
Henry ciexs as disturbing factors in
the stock market
II Is. he says. impossible TO predict
what demands 4 var between Russia
and jspan iii make GpoE the worlds
money markets. The uncertainties Or
war are proyerhfai. Yet the chances
are thar these demands will not be ser
ious, Both countries have thus far
made very extensive heIiic0se prepare
tions without unusual outside borrow
lngs; both countries have far from
exhausted their own monetary re.
sources. and. while the last Russian
budget a a poor one both Russia
and Japan could. II necessary, carry
on hostiIities for a considerable period
without heavy borrowings IN All.
probahility, however. one II o both
or the contestants would put oIs a
loan 70 relieve the pressure or taxa
lion at home The amount Of which
would be largely governed BY the ex.
igencies and length of the struggle
Experts generally agree thar the war
will be Of short duration, and that q
decisive victory at sea would bring il
quickly III an end There are some,
whose opinion Is entitled 10 much
weight, who expect peace considerably
within i year after the outbreak but,
as already said, predictions as to war
are VIGOROUSLY unreliable: for ex.
ample the late Beer was, which every
body expected would prove only a
matter Of q few weeks, lasted over
two years The conclusion to be de-
rived. however. from such comparisons
Is that nd heavy demands from either
Russia or Japan are in immediate
prospect, and the chances of a short
struggle materially diminish the prob
ability of serious disturbance III the
International money markets.
The announcement that the gov.
eminent had decided to make a call
of 20 per cent or the public funds on
deposit with national banks towards
the $4,000 200 canal payment was
somewhat OF a surprise. Additional
calls OF 10 per cent will follow until
the fun payment IS made. and Official
Is given that the payment
viii be conducted so as to create the
least possible effect upon the money
market. The value OF these assur.
ances depends very largely upon cir.
which the secretary can
no, control. Gold exports can possibly
be aserted provided there Is a suf.
supply Of exchange In which to
the proceeds Of which could
Be at once redeposited in our banks.
The payment TO Europe, however, win
BE- materially lessened by the fact that
very considerable portion. perhaps
aalf. Of the Panama stock Is already
held In the United States. Unfortun-
.tely the present high prices of cotton
wheat do BOT encourage exports,
md while hitherto We have largely
By these figures and the sup
,ly Of bills mas been largo indications
iaggest that values have reached the
init fer espor, The monetary stu.
ltion Il further complicated ~ the
act that bank loans in New York have
'xpanded over sie0. zoe 100 during the
ast hye weeks and now stand near
BIZ $1,000 30 90 mark. II Is quite
vfdent therefore that should any
ar,her stress be pat upon tie money
there viii IN a calling Of loans
"a ! consequent increase ii interest
ates Bank officials. however, show
y ~unsasiHcss over this future.
.
Another nnscttilng feature is the
~uculation Id cotton. cofee and