Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1905-05-02

outside facts alone weN sufficient 10
cause an important decline in the
market, but the technical position
was also such as u encourage weak
ness, Some very important pools,
made up among the largest operators.
have recently been dissolved, there IL
strong suspicion Of friction within
the community OF Interest," ana the
backward condition OF the crops IS
well as the expected naval battle be-
tween Russia and Japan have each
contributed their quota OF depres'
sion, To these adverse influences was
added the fact that prices OF securi'
ties were still considered too high
to make attractive investments; 80
tina, while the general situation con-
iinues satisfactory and sound the
market was totally unable To resist
such n combination OF ~unfavorable In
0ucnces,
"The demand for securities from In.
| vestOrs has been very largely salts
| fed by the heavy iloiatlons Of the last
six months. Several hundreds OF mil.
lions of new bonds and stocks. chief
" the former, have been issued dur
Ing thai period; a considerable pro-
| portion OF this amount. OF course,
being the ~refunding or merger purpos'
| es. Nevertheless, the new capital
| commitments for the past six months
have been exceptionally heavy and
the fact that further issues are In con.
templatation can hardly be regarded
a bullish argument. although 1t may
possibly oblige powerful banking in
/ ,erests TO sustain the market In order
10 facilitate their notation, A rather
striking illustration Of the diminishing
appetite for bonds was shown In the
low price Of about 10l AZ which $25,.
900 900 OF New York city bonds sold
last week. This was a decline Of 2
points, due entirely to oyersipply. II
investors are becoming indifferent
to such high class securities as these,
how will they feel towards other
bonds Of a less desirable quality SO
long as prices are maintained al such
abnormally high level?
The weakncst side of the situation
seems 10 be strictly confined to the
stock market, which has over-discount-
ed all favorable conditions. General
prospects contiue favorable. the crop
!, situation being promising In spite OF
the backwardness caused by cold
also suspicious. and building Is like
;, " to be conducted upon an unprece
dented scale during the present year
50 that labor win be well employed;
and. proiiting by past experiences, II
+, is TO be hoped there will be less trou
| bic arising from strikes and disputes
| between employers and employees. Fol-
( all sorts of building material there wi
9 be an increased demand at profitable
1 prices Phenomenal orders are be
q ing placed for iron and steel, and
7 while the railroads continue as usua
!, the principal buyers, a larger portion
: For orders than usual are co mig in 70
: general construction. The splendid
E report Of the United States Steel cor
: poration is emphatic testimony Of In
. wonderful activity In the iron ant
|, steel trades, Other metals sympaihiZt
more or less with iron, for the rea
son that they, too, must share in tn,
= general demand for constructive pur
, poses. In nearly all respects III
1 Industrial situation Is fully as salts
I factory as during the boom periot
I OF two years ago. with this difference
! that prices are not so high and
therefore. more stable, while labor
well and p~roftably employed and for
' tunately less disposed to incite trou
: BILE. Many Of The industrials are re
porting good earnings. and are likel,
to continue so doing for some month
to come. Railroad earnings are als'
excellent. Reports for the second ant
third weeks Of April show gains o
nearly 10 per cent over last year. An
other proof Of the large volume O
transactions Is found in the clearing
: house returns. which last week wer'
. Sc per cent ahead of The previous yea
and the week before showed an In
, crease of So per cent. Financing Of I'm
: portant negotiations, as well as spec
; ulation. may have something to d.
} with this increase. but a very con
siderable portion Of 1t is %unquestiona
: bly, due to the genuine enlargement o
business"