Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1906-11-07

Henry G1ews says Election Al
tation and stringent naoney rates pat
somewhat of . dampeE On the sick
markets activity. Had n mot been
foF the ~gemeraily satisfactory condi+
tons existing outside n wail street.
these two factors might easily have
eansed Q considerable decline in
sto~k exchange vsaues, On Thurs.
day. however. Pennsylvania railroad
company sprung.a surpgise by. desiar.
1lng m ~Increasef dividend whiesi
turned the market Immediately upr
wards and improved the general sen
ffHlert ng The direct. As Tor the moi.
etary situation rates continue high.
and ere additionally stiffened by
the temporary withdrawal % fund,
for the November interest and diEad.
end payments. When these ri F~
turned. rates. should again beeon.e
somewhat easier. II IL useless. how"
ever. 10 look for easy money during
m remainder OF 1906. In spite Of the
great increase In circulation and In
the supply of gold. there In still an
insdfficiency Ut currency to meet the
wants of the country. This a only
be explained by the great Initiation IN
values Of both commodities and he.
cnrities. which require much larger
sums Of money for financing their
movement and transfer. The per
capita circulation In the country Is
exceedingly high and IN" nations
stock Of gold. as already said. has
been vastly increased: but I'm view ~
the great rise In commodities n a
vastly greater enhancement In Sc.
curities. 1. is plain that supplies are
practically exhausted. This should
not be taken AZ an argument for
more money--for that would simply
mean more initiation. u should rath.
er be accepted as an indication Of
the necessity Of liquidation In order
TO restore values and our markets to
more normal conditions. Nobody
wishes to rec the volume OF trade re'
stricted: but that volume al only be
maintained by bringing values back
to more normal relations with our
currency supply. An elastic eurren'
cy would. Of course. somewhat ale
viate the strain at periods and tend
10 avert extreme and sudden fluctua.
tons. Nevertheless. that Nv not the
real cure for the present situation.
Prices generally are too high. and
costs Of all sorts are corresponding
ly. enhanced: not only costs Of living,
but costs Of manufacture and produc'
ton generally. In some cases values
have already reached the point at
which buyers either will not. or can
not. afford to go beyond; In which
cases such markets must come to n
deadlock unless concessions are
made. Agricultural products are gen.
orally bringing high prices: conse~
quently. more money is required to
move them To the market and carry
them until consumed. Finished prod
ucts are exceedingly high and the
same rule holds good there; the same
also applies 10 the stock market.
Much larger capitals are now requir-
cd to carry stocks than formerly.
How long this state of affairs Is like
ly to last Is beyond prediction. While
consumption continues so active and
so healthy. there is no immediate
probability 0f reaction. II We n
only steer clear Of a financial crisis
on Wall street and keep values down
to the normal, the present activity in
trade may continue indefinitely. Our
money market IL stilt In an unsatis'
factory condition.