Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-01-12
THE FINANCIAL SITUATION.


the market suffered a reaction Iast
week. due 10 two entirely distinct
causes: The poor statement Of earn.
ings OF the United States steel cor
poration and the Russo-Japanese war
crisis. The failure Of the gigantic
steel corporation to declare a diyi,
dend on It's common stock, affecting
tens of thousands Of stockholders
throughout the country. and the dis.
turbing prospect of war. coming to-
gether. induced q general selling move
ment.
Perhaps The most serious disturbing
factor vas the strong probability OF
war. While II Is evident that the
resources OF diplomacy have not AZ
this writing been entirely exhausted,
the situation is nevertheless SO acute
that slight proyocation on either side
would precipitafe open hostiHtics.
Japan may easily be tempted into fl.
ing the first gun. knowing that she can
strike effectively now than by
allowing time for her opponent to more
effectively prepare for war. Delay II
gain for Russia and corresponding less
for Japan; hence the aggressiveness Of
the latter, and the risk Of early hos
Utilities. A great deal OF anxiety Is
shown regarding tho consequences of
a struggle between these two nations.
VIII other nations be involved? or
course no one IA predict such re-.
suits. The possibilities are tremen-
dous. but the probabilities are for.
tunately very much less; the very I'm.
mensity Of the former acting as d
safeguard against the worst. Perhaps
the pivotal point In the conflict will
be the attitude Of France. Should her
sympathy with Russia carry her into
operations, then Great Britain,
By treaty with Japan, would be obliged
70 actively support the latter. II Is
exceedingly improbable, however, that
Will allow herself to be drawn
into such antagonism towards Great
Britain, and the chances are that
Russia and japan will fight II out
with the United States, Great
Britain, France and Germany all high.
Y Interested spectators, American in.
,erests are certainly opposed to the ex-
policy which Russia imposes
ipon all within her rule; hence our
,ocalled open door. policy, to which
is Of necessity strongly antag.
Events and destiny have
made us a Pacific Power; we have
more seaeoast and ports on the Pacific
ocean than any other nation; and the
.utnre development of our commerce
makes our interests In the impending
lonnlct as great. II not greater, than
hose Of any other. so that whatever
'ast friendship with Russia we may
'herlsh our interests In future lie IN
he success OF Japan. who seems likely
Q have 10 fight alone the battle for
civilization. Russia Is not
vel prepared for war. and her fnan.
ial resources are limited, notwith
landing the mnchtalked-o war chest,
'hich Is nothing more than a gold re.
erye fund held AZ the basis Of a pa.
or currency. Let this be impaired
nd Russian currency will rapidly fall
! value. with all the attendant dis
lrbances, which Russia Is less able J
meet than any great power. /.
Passing Of the dividend on steel
was a foregone conclusion.
was the fall In earnings from thir- .
en- millions In June to something y
GER three millions In December that :
used fresh selling In the stock mar.
4. This was less than half the earn.
~ In the same month last year. II
~ argued that II the iron trade sui.
red % that extent lii December, how
out other lines OF industry? This.
'weyer, + fallacious reasoning. II
ist DO remembered that an immense
,ount OF business was held up to.
lrds the close of the year by uncer.
MY as 70 prices. Buyers would not
J old figures and wages had to be
Cotton speculation continued upon
feyerish scale, the staple showing
arp declines owing to The war rum.
! aud distrust u The speculative
'yemcnt. Wheat. on The other hand
as usual on war rumors.
other respects the stock market Ia +.
hanged No loss In The recently
proved financial undcrtone can be
eeted, and belief In easy money
fbn n.x ~ 4