The Washington herald., 1908-02-03

A prolonged stretch Of cold weather
would be, Of course. unfavorable from a
business point Of view, since il would en-
tail increased cost Of railway operation
and other manifest disadvantages. No
doubt, too. a good deal Of cold weather in
the immediate future might be some
what harmful, because, according 70 trust
worthy. accounts. the winter wheat crop
does not have a normal quantity Of snow
covering, so that in some degree II stands
in danger Of winter killing.
Importance of Haryests.
It almost gses without saying that more
Importance viii attach 10 the hsrvests
this summer and fall than at any time for
years back in our agricultural history. II
the wheat fields and corn fields are full Of
promise at the usual time. the people OF
the Western country will take on encouT-
agement and the demands Of consumption
that VIII proceed from them for mate
risls and goods OF every description viii
be felt in business circles throughout the
land
IT, on the other hand, the outlook for
our crops is poor. that tendency toward
business contraction which is now in evil
dence IN such an extraordinary way IS
not al least likely % be mitigated.
The stock market last week was more
than it has been at any time since last
years troubles a matter OF daily profes-
sionaI speculation. No one appeared 10
be doing anything in the market except
the stock exchange room traders. and
one after another speculator Of this sort
Curt6ilcd his operations, IL he did not
withdraw from the market entirely
The swings In prices became narrower
and narrower and the market grew rOr-
respoGdingly duller and more uninterest-
ing. ia fact the only significance that at
tached 70 the movements in security
values az all was that they seemed 10
indicate tha, the market had passed for
the time being into a state OF compare
tive equilibrium halting its course In the
presence Of conflicting and nearly evenly
balanced influences and arriving almost
at a decision 70 suspend activity entirely
until new developments should make
themselves felt and various pulling ques-
tions be answered
such an attitude Of hesitation, y not, in
deed O actual torpor. is not at all un-
natural under existing circumstances, and
has not infreQucntly been witnessed In
the latter months Of the winter when 2
considerable rise IN prices occurred in the
earlier period
Money Situation No Factor.
For the time being the money situa-
ton has ceased to be a stock market fac
tor az ALL and the prospect Tor months
ahead in this regard seems 10 be one Of
permanent ease. A. the same time. there
are some indications that the decline in
money rates has gone as far as it is go
ing. and that perhaps some little advance
in rates may be the next thing that oc-
ours.
We are admittedly OF the point Of gold
exports, probably in considerable volume.
although our finances are now ln such
shape that We can easily spare the
money
one matter that must be watched, and
that may easily come TO be one of the
most salient features Of the general hnan-
cial situation later on, is the steadily
increasing deficit il the current revenues
Of the government Owing 10 the heavy
falling off in customs duties proceeding
from the decrease IN the coUntTys im-
ports. the revenues OF the government
have been diminishing lately az the rate
of nearly s., 10000 q day,
Mr.. Tawuey, chairman Of the AppTo-
priations Committee Of the House Of Rep
Tesentatiyes, came out with an estimate
last week that the governments deficit
for the fiscal year would reach 500, 000, ,0c1
Such a falling off, If it occurs. viii ne
cessitate the withdrawal Of an equal
sum OF government money from the pub
lie deposits in the national banks. viii
compel Congress 10 cut down the national
appropriations, and may be attended with
consequences more or less unpleasant. If
not exactly serious. IN the general bust
ness world
Conservatism in Loans.
Again as bearing upon the money situa-
tion the fact is significant that some OF
our largest money-lending institutions
are, despite the current monev plethora,
adopting a conservative policy in the
matter Of putting out funds Anxious
as they are to make money for their
stockholders, they are not only not en-
deavOring to force money upon borrowers
at prices currently charged for the ac-
commodation. but they make no secret Of
the fact that they propose 10 keep them
selves very strong in funds until after
the coming electoral contest is decided or
until the upshot Of the struggle becomes
foregone conclusion.
The bond market which during the
fore part of last week was exceedingly
strong, became much less active in the
latter part Of the week, even if prices in
It were not materially depressed. Ger
tain close observers Of the recent dealings
in bonds maintain that the buying OF
securities that has there been noticed has
proceeded rather from bond dealers and
bond houses rather than from any gen
uine investment purchases, and that
something of the same manipulation has
been witnessed in the bond market 81 wit
messed earlier in the month in stocks.
One cause for the rather more hesi-
tating feeling i'm this quarter was the
rumors which eliminated in an Official
statement on Friday that the city of
New York was about TO put out $4,000 900
more AZ per cent municipal stock, bring
ing the total issue Of city bonds in the
last six months up 10 S1l0O00,000
The most sensational occurrence last
week in the financial world was the local
bank suspensions. Very little effect was
exercised by these matters in the stock
market, since the weakened condition OF
the institutions in question had long been
understood. and it was commonly realized
in banking circles that, in view Of what
had happened last year, it was a good
deal more than doubtful whether these
institutions or some of them could ever
regain the place they once held in public
confidence.
Aftermath of Conditions.
All this is the necessary aftermath not
simply Of a stock market panic, but OF
banking methods reprehensibIe in the high