Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1906-06-05

demands for various purposes. sarh -
new enterprises. trade activity. ssueA
ana real estate speculation and, fin
ally. the San Francisco Eire. have all
tended 10 the practical exhaustion u
monetary supplies Fortunately ~e.
have BEEN able TO make extensive Dor
FoWings abroad. and the danger aEts
Ina from this strain upon credit
system has hssn happily ayersed
some of. these demands have been
satisfied. temporarily II least. and
the prospects are Chat during the
next two months easier conditions
viii prevail.
Al this jnnesure. however. come
the demands ~ The railroads. which
have been postponed ss long al pos
sshla. These have been usually heavy
In the past. and promise 10 be very
large In the future. Our railroad sys
TEN Is still behind the eountry's re
auiremenis. the expenditures Of the
last four or five years having been
Insufficient 10 meet national growth
Most of these OUTLAWS have been de-
voted 90 undermining our railroads
and providing better terminal faeilt
ties. Nov with the development Of
% the great vest. comes the impera-
tive call for new mileage. as well as
completion Of improvements. Many
important q projects are already
under way and others are pending.
II h stated that fully $4,000 miles OF
new road have been projected In the
south, and n the same ratio is ohsery.
"a I'm western states-which Is more
than iikely--it Is easy 10 g that the
next two or three years will witness
an unusual period Of new railroad con.
~struction. This will, Of course. be
beneficial TO the country at large and
promises continued prosperity for the
iron and steel industry. Hut what will
he its effect on the stock MARKET
Prices OF securities are already "a
high that satisfactory investments are
difficult To find. The bond market "
stif congested by a lot OF unstable
issues held by bankers I'm the hope O,
lodging them IN investors strong
boxes. Ordinarily an Increase I'm the
supply Of securities II apt TO weaken
the market. especially when values
are high. This situation leaves the
financing Of new railroad issues a
somewhat difficult problem. The
needs of the railroads are Imperative
for the country Is growing and these
great projects once started cannot be
held up without involving serious Joss
Owing to high rates for money and n
limited demand for new securities
the railroads have once more been
forced to the unwelcome e~xpedient D!
short term notes I'm the expectation
that when monetary conditions be-
come satisfactory they may be
changed into fixed obligations. With
such possibilities. therefore. the out
look Is not favorable to very low rates
for money. and the efforts necessary
TO finance these new ventures may he
an important factor in the market for
some time to come They will nat
urally lead our great bankers to Ell
forts for preserving a healthy tone
In both the security tnd the none,
markets: the situation, although con
flicting and complex, not being un
favorable to such operations. Mucl
will depend upon this seasons har
vest. Bonntifnl crops at present price,
viii insure another year on genera
prosperity. Winter wheat promises 4.
bumper yield and crop reports gen
orally are satisfactory. The cotton
acreage this year will show an In
crease Of about 3 IL per cent, or 2,
100000 acres. What the effect o
Ipor crops would mean II Is difficult I,
predict. for the reason that our farm
ers are in such improved financia
condition that a single por seasol
would not involve the serious conse
quences of five or ten years age
Since then our farming classes In bot
the south and west have not only gol
ten out Of debt but generally hav
money in bank. This is a very dill
ferent situation from the time whel
the majority of our farms we're heayI
Iy mortgaged. Consequently poo
crops. while they would undoubtedi
check prosperity. would not be sue
a calamity as in former times. Blu
at present there is no reason for an
but hopeful views.
Business conditions continue ger
orally satisfactory. There Is more o
less complaint Of high prices, an
some recession In values OF commod
ties al well as securities would n
doubt be beneficial. But until suppl
overtakes demand and credit has bee
strained TO the utmost-neither I
which contingency = yet IN sight
seems useless to expect any importaI
/ reaction. From the west all account
are favorable and optimistic. Thel
prosperity continues at high tide. tn
south, too, Is hopeful and II maxim
/ rapid progress. Some Hneasine<s
manifestsd over the political outlco