The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-12-23
IMPROVED UNDERGONE
IN FINANCIAL CIRCLES

mers both west and south are now en-
joying prosperity to a degree which
they never anticipated, and the effect
of this is already being felt in an ex-
cellent demand for all classes Of mer-
chandise. The Christmas trade thus
far surpasses all records, and the year
is ending in a satisfactory degree OF
industrial and mercantile activity Gre
ated by our agricultural prosperity.
The outlook for 1910 is, therefore, dis
tinctly encouraging.
A firm undertone prevails in the Sc.
curity markets. Railroad shares have
not been very active, except in the case
# few of the cheaper specialties, or
in properties affected by dividend in
creases. The bond market showed
slightly more activity, and investors
desiring to anticipate any January rise
have manifested a somewhat greater
interest in better grade securities. With
conditions SO generally favorable as
at present there is little occasion for
distrust. Confidence is steadily grow
ing. and the future of the market is
apparently more in the direction of
somewhat higher level than lower.
The weak points in the situation are
those where a few stocks have been
conspicuously advanced or where hold
ings have been unduly concentrated.
Liquidation is possible, if not probable,
In these quarters, which are in reality
the only weak points The increase
in Readings dividend was one of those
incidents, which have been fully dis
counted and are more likely to stimu-
late realizations than new purchases.
Money continues to command fair
rates, and though there will be little
danger of stringency after the middle
of January, the outlook is for continued
firmness for s0me months to come.
Business is active, prices are high,
speculation is increasing, gold exports
are threatened and there promises to
be a large demand for new capital
during the first half of 1910. A num-
Der of new issues are forthcoming, so
it is quite evident that we are in for
period of fairly active demand for
money Whether gold is shipped to
London or not next week depends
mainly upon the actions of the large
short interest in exchange.
The situation abroad is improving
The scare over the British budget has
materially abated and the British cleo
ton in January threatens less distur-
Possibly the house of lords will be re-
formed in some respects, but not abol
ished, and it is quite certain that the
house of commons will preserve its
control of the public purse strings. In
Germany the outlook is more favorable
than six months ago. Business is re.
viving in that country, and with less
ened tension in international political
affairs there has been an Improvement
in financial circles. Throughout Eu-
rope, however. there is a feeling Of
uneasiness among financiers regarding
the continued attacks upon wealth in
one form or another and the increas-
ing burdens of militarism and taxation.
The effect of this in a quiet way is to
force European capital to seek invest
ments elsewhere. Such a tendency
ought to be beneficial and stimulating
to the United States. provided our own
legislators. both state and federal, will
keep their raids upon capital within
! the bounds of reason.
The outlook for the local market is
hopeful. There are points where profit
taking at any time must induce more
or less liquidation, but the earning
power of both railroads and industrials