The San Francisco call., 1904-06-20
RATHER MORE TONE VISIBLE.

L marked it upon politics. Several years ago 1t
Was considered every mans duty 10 proclaim through
megaphone if necessary the extraordinary activity OF
trade and the wonderful richness and prosperity OF the
country to-day the feeling Is equally pronounced that
is every mans duty humble the funereal word
conservatism every little while the sury parrot on
his perch croaks pretty polly regular intervals or
the devout Mussuman mutters his prayer
From one end OF the country the other now
near that business IS quiet that have entered upon
period of recession that conservatism IS the present
number the programme and that imperative that
every wel-ordered citizen go slowly and make no
mercantile mistakes Ii is the fashion OF the day like
the Panama hat, and every says that business IS
quiet whether he finds il This IS but another
illustration OF the old aphorism that sheep that
they together and follow each other and beat the
same refrain.
AS OF fact, business, while quiet and possibly
getting quieter, is really dull, taking the country
whole 1t is the with the remarkable activity
OF the past FIVE years that makes it appear
The great boom over, conditions setting to more
tranquil and normal plane, fewer enterprises are
being hoated, and profits smaller while production,
after wild chase catch up with the consumption
tending period years, has last overtaken IT.
1t has been chase which, sailors tell is always
long
keen-eyed New York banker, evidently well posted
the situation says in late of the Wall
Street Journal: There is very healthy demand for
we'll bonds of municipalities railways and
porations which offered attractive prices In
very discriminating in their purchases. They
insist on buying only securities of undoubted merit and
will only buy these when offered attractive prices
The the part OF investors natural
from the speculative OF little time ago. In
probably little cautious now, but it is
better that they should be in this frame OF mind than
cautious enough Investors will touch speculative
Of doubtful stability The market bene-
c.-.
latve stocks going into high-grade securities.
j. travelling through the Middle West noted signs OF
business contraction, but nothing that should give
for alarm. Conditions the bottom very
sound"
This to hit the situation exactly.
The public has recovered from its fever and going
slowly perhaps slowly There is such thing too
much caution Conservatism carried to extreme be-
fear. which is great deterrent trade. There
is nothing the condition of business in the United
States to-day justify anybody in getting alarmed
Withdrawing his funds from legitimate channels OF in
vestment Standard stocks in Wall down 10
point where they safe investments as they
get for there nothing absolutely safe in this life,
and low values often go still lower for time But
with money in large supply everywhere, with fail
heavy enough to alarm with crop prospects
which, say the least excellent with great foreign
trade and frstrate demand for staple merchandise all
the United States the commercial conditions of
possible
them to get. Quotations for some lines of goods may
go lower STILL and ought go lower to get where
they belong, but any marked decline will almost
surely be followed by upward reaction later
This is the view taken BY the ablest nanciers OF the
country and they ought to know Hence their surprise
that the public do take advantage of the present
reasonable prices to invest in the standard securities
which paying their g. 4 AMI 5 per dividends
right along. Indeed there have been indications of
late that such investment movement is now on the
eve of starting Take the New York stock market for
instance. What appeared to be the beginning of up
ward movement under way last week when the
Southern Pacific Company without word of warn
ng launched huge bugaboo on the market a
malicious boy frightens the baby with the precpitae
apparton of a hairy and ferocious jackn-the box and
the upward movement got shock that took its breath
away, and it to abrupt halt.
This was the announcement that $Ioooooooo in pre-
ferred stock be issued that it would pay per
dividend and that $4ooooooo of this would be issued
Immediately. AS this would put a stop any conten1-
plated dividends the stock. the announce
fell like wet blanket the market and for the
time being paralyzed it. An immediate recession all
along the line of stocks took place London thought it
day so, to the conclusion that it did not
like it, and began sell the Paci6cs Union and
Southern New York took up the and the bull move
ment in stocks nipped in the very bud, for some
days. at least.
But general business not apprecaby affected by
this setback in Wall street AS mentioned in this column
week. the condition of the crops is the controlling
factor in the trade situation this year. and what the
Southern Pacific does with its stock has effect on the
growth of the wheat and in the fields. They grow
right along just the and doing well that the
banks railroads and large exporters of farm products
are looking forward to very fair fall trade in conse-
quence spite of the usual deterrent influence of the
coming Presidential election which have been
pretty we'll discounted and is causing much talk this