The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-11-09

recent n.uidation and shifting of loans
to Europe. Usually we are importing
gold at this season, but the situation
Just now is more favorable to an OUT.
ward movement of the precious metal
than an influx. Our exports, it is true.
are increasing, but imports are still
sufficiently heavy to keep the excess
of exports at a very low point. Europe
is not disposed to take our securities
with any freedom; in fact, is often
tempted to return them because OIL
the present high level at which many
of our best issues are selling. London
is apprehensive concerning the effect
upon the stock market of a rejection
of the budget by the house of lords,
which would precipitate serious poll
teal uncertainties London is also I'M
easy over the money situation and the
possibility of the Bank of England adj
vancing it's rate to six per cent if ne
cessary to maintain it's control. The
boarding of gold by the Bank OF
France is another source of suspicion.
Our own treasury finances are not YET
in satisfactory condition, the October
figures showing a deficit in revenues
of over $6,000000 in spite of the new
tariff. In consequence the rumors OF
an issue of short term government
bonds are again revived. The belief
that Grmer money rates are likely to
be more or less permanent is having a
distinct effect upon the bond market,
which shows a generally declining
tendency and absence of demand.
On the stock exchange here a more
sober feeling prvails, reckless specria-
ton having been tempered by recog-
milton of the fact that prices are very
high and offer little inducement to in
vestors under present conditions in
the money market. 1t is recognized
that more or less imitation is prevalent,
and that if interest rates advance 1t
will be a serious obstacle to a further
rise in values. There is, nevertheless,
hopeful undertOne since the activity
in trade gives strength to the indus
trials while continued large railroad
earnings afford good support to rair-
road securities. Phenomenal activity
is still the rule in the steel trade,
both orders and production surpossIng
all previous records. The activity in
steel. however is not prOportionately
shared by other industries, and the
great textile trades are distinctly
hampered by the high prices for cotton
and wool. Speculation in cotton is
being carried to excess, the rise in
the staple being out of all proportion
to the injury to the crop. In copper
also there il excessive manipulation.
the danger of which is emphasized by
the fact that the price is being adj
Varced in defiance of all economic
laws and in the face of continued in
creases in supplies. In many respects
the general outlook is very satisfac-
tory, and owing to the unequaled
prosperity of the agricultural classes
the promises are for at least another
ear or two of gOri business On the
other hand, it must not be forgotten
that the country is working upon an
abnormally high price level; that in
tereSt rates are permanently higher;
that the speculative mania is difficult
to control. and that our prosperity is
very uneVenly distributed and de-
cidedly lop-sided. Some process OF
equalization is due, and just how this
will come cannot be predicted. The