Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-19
Financial News Letter
By W. G.. NICHOLAS.
Special Correspondence Of The Star.

By W. G. NICHOLAS.
Special Correspondence Of The Star.
NEW YORK. April 49, 1903.
Four out of five of the people one
meets on Wall street are bearish
at heart, but they have hesitated to
buck the bull manipulation, not know
ing how far 1t would go or exactly
how strong it is. With call money cheap
and in large supply the market leaders
who are interested in higher prices or in
the maintenance of prices around the
present level can get all they need for
the management of the market. The
banking interests are doing nothing to OPP
pose the program of the engineers of the
bull movement and thus far there has
been no important liquidation of securi-
ties known to be held in readiness for
sale at the right time There are a dozen
or more banks and trust companies with
large blocks of securities on hand which
they would like to liquidate and which
they will sell in the process of general
house cleaning. In market so narrow
as this they might have difficulty in dis
posing of the goods, hence they are play
ing a waiting game.
So long as this stuff is held off the mar
ket it seems to be no trick at all to hold
prices fairly well in the face of general
business conditions, which to say the least
are not encouraging or especially hopeful.
Market leaders know too much to tempt
holders of these waiting stocks to begin
unloading, and for the time being they
are quite content to let matters drift
within a narrow range. At the first sign
Of a real recession In values the market
might also get a big load of the mer-
chandise. This is what the great major
ity of traders in the street rather look
for. That is one of the reasons why the
~IrAk e.
less. 1t must not be imagined that the
market Is lacking In interest because of
its surface apathy. 1t is simply deadlocked
and everybody is watching with keenest
action one way or the other. 1t is very
unlikely that the prevailing inactivity
will last long. 1t is abnormal for the
value OF business on the stock exchange
to keep as small as 1t is now averaging.
Railroad earnings are showing some
slight improvement in net. That is be-
cause they are putting into effect many
economies which they were slow in reach
ing. but which will now be reflected in the
proper bookkeeping account. They are
spending no money that can be saved
and even maintenance is being more or
less starved. No new contracts for sup
plies and materials are being entered into
and nearly all the railroads are willing
to pursue a hand to mouth policy. The
every railroad In the country are still
full of idle cars, but not quite to the
extent they were few weeks ago. The
reports that have reached Wall street in
regard to the Industrial situation are
just shade better, but they are yet far
from satisfactory, and on every hand
there are multiplying evidences of con-
tinuing construction in business. This is
100 h Ia hA <Iiv>~S r1-1,f
buying power of the masses due to the
great number of men being out of en-
ployment or working on short time At
the same time 1t does not appear that the
bad way, collections being fairly good.
taking the country through. Wholesalers
are far1ng rather better than they have
been expecting, particularly in the re-
ceipt of orders from the agricultural
states.
In the iron and steel trades the outlook
Is not bright. The large manufacturing
companies are struggling to maintain
prices and succeeding very we'll in most
quarters. They are going on the theory
that they can do as much business at
high prices for finished products as they
could at low prices and that they have
nothing to gain by cutting and slashing
or by any kind Of a reduction There Is
no pretense OF secrecy about this matter
Of keeping up prices, although the COM
binatfon which Is openly in existence for
preventing break is chargeable with be-
Ing In restraint of trade. This combina-
ton Is very likely to become a target for
political attack as being conducted in vio-
lation Of the Sherman antitrust law.
A few years ago a similar combination
was in effect among the iron manufacture
ers. Then It held meetings by candle
light and with the greatest secrecy. the
sessions never being held twice in success
sion In the same city. Now the combine
meet openly at the Waldorf and official
reports are made by high dignitaries in
the leading corporations to the effect that
the big trusts are resolved to hold fast
Meantime pig iron continues weak and
what business Is done in that department
is usually at concessions from the pub
iished prices.
Il i
The small sized bulge in copper seems
to have hattened out, although the shares
of the copper companies do not break
The important background feature Of the
copper situation is the known existence of
huge undistributed stocks in warehouse
across the Atlantic, metal that must some
time make its temperance In competf-
ton with the current output Of the mines.
There Is strong party in the copper
trade which talks 10 cents for the metal
during the year. Such price would be
below the average Of production.
The outward flow of gold set in this
week and estimates are heard that before
1t stops $25 100000 will be shipped out of
the country. Such a movement would
work no special hardship here as we
have plenty Of gold to spare. A shrink
age in the volume Of our international
trade is noted with some unea slness, the
decrease affecting both the imports and
exports. The phenomenal axportation of
our products during November. December
and January gave this country great re-
lief. but It would appear that in addition
to the heavy shifting of balances from
the other side the United States was
obliged to do some independent financing
to tide over. Our indebtedness to Eu-
rope is not important however. and the
repayment In gold at this time will not be
disturbing factor. The steadily grow
ing disparity between our governmental
income and outgo is one of the discourag-