Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-03-08
THE FINANCIAL SITUATION.

The money market situation, the in
surance investigation, wages agita-
ton, the coal situation and the Moroc-
can dispute are the principal causes
assigned for the present reaction in
Wall street in the Weekly Financial
Review of the Henry Clews & Co.
banking house. 1t says that the insur-
ance investigation will probably result
In the large corporations being con-
Quoted along more rigid lines and that
the change will be greatly beneficial
to the public. Regarding the present
conditions 1t says:
The speculative situation fails to
show any improvement. There has
been a noticeable dwindling of NUM-
bers in the bull ranks, and a waning
courage on the part of those who have
been conspicuous on that side of the
market. The impression that the top
wave in the securities market has been
reached, for some time to come at
least, is steadily growing, and from day
to day it becomes increasingly evident
that the teachnical situation has been
materially weakened by liquidation
quietly effected when the marketwas at
its best In December and January.
The absentee list, moreover, has
been considerably swelled by the quiet
disappearance of numerous individuals
who wish to avoid testifying before
the various investigating committees,
which are not confined to New York
alone but are at work in Washington
and other political centers. The in
vestigation fever has had not little
to do with the present reaction in
Wall Street. It has not only caused
a good deal of personal anxiety among
many of the responsible heads of cor
porations, whose doings would not
stand the glare Of sensational pub
licity; but it has also made more diff
cult the promotion of new financial
operations and is breeding a spirit of
pessimism and personal animosities in
the financial district, which more or
less threatens the spirit of harmony
that has prevailed during the last
three or four years. New lines of
cleavage are being formed and an
tagonisms created which sooner or
later must show themselves in market
operations. 1t is unnecessary to cite
the friction and animosity which have
been created by the insurance investi-
cation, none of which was anticipated
in the remotest degree a year ago.
Nobody foresaw the consequences of
disputes which began in the Equitable
last summer; and, while the results
eventually are certain to be beneficial
to the public and will unquestionably
raise managerial standards, still the
intervening period of agitation and re-
adjustment is a disturbing one; i'm
pairing confidence temporarily and
necessarily having an adverse effect
in higher financial circles. Fortunate
ly, our large corporations will in FIJI
ture be conducted upon more rigid
lines, and the mesalliances between
our big corporations and INSCRIPTIONS
politicians should boone more diff
cult of accomplishment and less likely
to- be repeated. Already our large in
surance companies, upon which great
bankers have frequently largely de-
pended in their syndicate operations
have withdrawn for good from ali
transactions of that character. In flu
ture these great syndicates will have
to look direct to individual purchasers
for their market land will lack the
support of these great organizations
which has always been highly impor-
tant in times of stress The effect
Will probably be to make such syndi-
Gates more careful in their future
commitments; change that will
prove beneficial, and which has fortu-
nately taken place during favorable
period.
The money market situation is still
a cause of apprehension Last week
the surplus reserve was down to about
$4,000, O0G-the lowest at this period
in sixteen years. The loan amount
continues to show such expansion, and
apparently, nothing but enforced liqui-
dation in the stock market will
strengthen reserves. The interior de-
mands for currency are large, owing
to the activity of business, while farm
ers both south and west are holding
on to their crops longer than usual
THE market has been somewhat
disturbed by declines in Consolidated
Gas and Metropolitan. The coal sit.
uation is anything but satisfactory and
.issu,te wages agitation is also an element
If aisnas Aeer-While it seems lii likely
that strike will be averted,. the out
look is unpromising to producers IN
asmuch as the mild weather has en-
forced large contraction in consump-
tive demands; and supplies, especially
Of. anthracite, have greatly Increased
IN consequence. Very soon the period
Of low prices and slackened demand
for coal will set in, and it remains
10 be seen what the effect of this Will
he upon the earnings of the companies.
Railroad earnings continue very salts
factory, ninety-six roads showing an
increase of twelve per cent during De
cember. The crop outlook, however,
IS uncertain, the winter wheat crop
being more exposed than usual to IN
iury from frost: mild weather having
nut the plant in a forward condition
hut AT the same time deprived It o.
the protection from snow. Poiltlca
tendencies at home and aDroae
are adverse. Socialistic views arr
being greatly stimulated by re
rent exposures of corporate mis-
deeds; and abroad markets are unset