The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-03-07
MONEY MARKET IS
EASY EVERYWHERE
TENDENCY OF INTEREST RATES
IS DOWNWARD IN ALL coUN-
TRIES AT PRESENT.
Henry Clews' Review of the Financial
Situation Shows Conditions Bet
tering Everywhere.

easy everywhere. Not only in New
York, but in Paris, Frankfort and Ber-
lin the tendency Of interest rates is
still downwards. This, of course, is
mainly due to the depression prevail
ing in commerce and industry in all
parts of the world. AS result capirai
is accommodating and diligently seek
ing every form of safe and profitable
employment. The effect of this sit
uation upon the security markets is
marked. In the first place, it causes
good demand for high grade in
vestments from conservative investors
and institutions, who have more regard
for preservation of principal than eth
er dividends or speculative profits At
the same time another class of buyers
viz the general public, continues to
abstain from the market, partly be-
cause the dullness of business and
diminution Of profits lessons their
purchasing ability, and partly becaus.
they recognize that the prices of av-
erage stocks are much too high in
view of existing conditions. The IN
siders and big market leaders. have
successfully resisted any important de-
cline thus far, owing to the abundance
Of cheap money There are reasons
for believing, however, that those
whose policy it was to support the
market and resist natural tendencies
have accumulated all if not more than
the stocks they desire, and that in the
absence of buyers their position is
anything but satisfactory one, not
withstanding their unquestioned finan-
cial strength.
For some months past all the re-
sources and skill of the great leaders
have been concentrated upon the pur-
pose Of resisting natural tendencies.
Considering the great shrinkage in
railroad traffic, and the unquestioned
duliness in business, prices ought to
have undergone a considerable reac-
ton. Such has been the course in all
previous panics, and it is difficult to
appreciate why the results should be
any different now. There is no doubt
the recovery following the rebound af-
ter the panic was too violent, having
been unduly stimulated by the inf1a-
tionary effect Of cheap money and the
powerful cooperation of great finan-
';iers. The resistance to natural reac
ton was not confined to the security
market it extended equally into all
Of the great industries under the con-
ACHrgthffiO. H shrdlu shrdlu shrdlu
doubted therefore, if liquidation has
been, in order to bring business to a
really sound basis. Buyers, not only
Of stocks, but of commodities, lack
confidence. There is universal feel
ing that as prices are too high, a re-
cession must follow; and all buyers as
a matter Of self-interest are preserv-
ing a hand to- mouth policy and OBJ
stinately refusing every anticipation of
future requirements
1t is this lack of confidence among
buyers that has much to do with the
present inertia of business. Nearly
all lines of business today are exceed
ingly quiet, the only signs Of healthy
activity being where. as for instance,
in cotton goods, thorough readjust-
ment has already taken place. Iron
and steel prices are now being reduced
to still lower levels. But needless to
say, though this has attracted many
orders, buyers are still unsettled be-
cause action has been deferred, and
the market has not yet been sufficient
ly tested by competition between buy
ers and sellers. Moreover, the dull
ness in trade is being further aggra-
waited by tariff agitation. While tariff
talk does not lessen the amount or
food consumed, clothes worn or shell !
ter required, still the uncertainty has |
a restraining effect upon new ventures
and strengthens the determination of |
buyers to preserve a hand-to-mouth |
policy. No doubt when the tariff ques-
ton is settled business will instantly |
take a vigorous start in consequence
of the accumulation of deferred Or
ders; so that the total volume of bust
ness over an extended period Will nave
suffered little or nothing. During the
however, much hesitation VIII
prevail and must be endured until the
tariff question is settled. Unfortunate
ly, the prospects are for a prolonged
and bitter agitation, present lnolca-
tons being for a more or less excit-
ed session of congress, lasting Wen
into midsummer. Already an unusu-