The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-01-24

one side, and the very powerful cliques
on the other, who are already heavily
loaded with securities, yet compelled
to shoulder the burden of marketing
at laest another billion during the
year 1s07-to say nothing of what may
follow in the succeeding years If Mr..
Hill, who is possessed of very acute
foresight, Is correct in his rather dis
couraging prophesy. In addition to
these influences, there is the develop
ment of more or less friction between
the gerat market leaders. Gradually,
but surely, the community of interest
idea If melting away and lines OF
cleavage and antagonism become more
and more evident as events progress.
This is a situation which hardly con-
duces to the support Of stock market
values. The political situation is aiso
becoming less favorable to the rail-
roads; public DISTRICT being stimulat.
ed by the revelation Of abuses and
the consequent often unreasonable
hostility Of state legislatures. The lat-
ter is exceedingly unfortunate and
frequently misguided, but is not to be
surprised at considering recent devel-
opments. Rightly or wrongly, the
public will not submit to the doings
and abuses of some of our great rail-
road magnates, and in the effort to
counterfeit them revenge will sonnet
lines play a greater part than justice
RI
and the tariff issue is again looming
up in the foreground.
Unsettled Market Expected.
For such reasons, an unsettled and
possibly more active stock market is
to be anticipated during the next
three months. Reactionary tenden-
cies are sure to be stoutly resisted by
those in control of the market, espe-
cially as prices have already under
gone a very important depreciation
bly, substantial rallies may at times
be anticipated, especially should the
money market improve and the short
interest in stocks unduly expand.
Easier money rates have recently pre-
vailed and the reduction in the Bank
of England rate to 5 per cent is sug-
stantial evidence of improvement in
the quarter. particularly as that in
stitutiOn has ben inclined to
strengthen it's resources in order to
meet and if possible avert any great
demand from New York, which at
present is the point of greatest strain
in the worlds markets. The. ratio OF
reserve to liabilities in the Bank of
England reserve has risen from 33R
in October to ASH per cent, increas-
ing it's supply of gold $15,O00,00O since
the end of December The New York
banks have Undoubtedly strengthened
their position by the return of cur
rency from the interior during the past
week. Perhaps London and Berlin
may again be disposed to give us as
sistance when needed and take at least
a part of our surplus securities at a
price Notwithstanding that some
American methods of finance have re-
Gently become disdiked abroad the fact
is not overlooked. however, that our
securities have proved more substan-
toin and more profitable than any 9TH
er outside investments. The general
trade outlook is good in the United
states and Throughout the world.
There are no clouds in close range
anywhere, except in the region of fl
nance, where over doing ha sheen ex-
cessive and where readjustment must
first take place.
HENRY CLEWS.