The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-04-01
FLUCTUATIONS ARE
IN NARROW LIMITS

are frequently being reduced. and 1t
might as well be conceded as not that
we are in the midst Of period Of re-
action which should have worked it
self out year ago as the natural Sc
quence of the panic, but was delayed
because Of the powerful restraint inn
posed by the steel trust and other SIM
liar combinations 1t is a question as
to whether consumption is not going
on at more rapid rate than produc-
ton in many lines of goods. Not In
frequently shelves are bare, and were
the tariff settled and confidence re-
gained as to prices it is quite probable
be disclosed, which would quickly
give business new and substantial
start. There is no doubt that many
orders and many new enterprises are
now held back pure'y through lack OF
confidence. and when this disappears
we may confidently expect at least
partial revival of business activity.
Possibly this may be deferred until
the crop outlook becomes more as
sured; but in any case underlying
conditions are sound and the process
of readjustment now going on is paw
ing the way for a healthy revival at no
very distant date The recent failure
of the steel trust to reverse the law
of supply and demand-although it did
succeed in deferring it's operations for
fully year-was in itself a most aus
picious omen That lesson will not
soon be forgotten, and in future these
great combinations will necessarily be
more careful as to how they interfere
with the forces of nature; for laws OF
trade in the end are just as omnipo-
tent and are derived from just the
the natural world.
Gold Exports Cease.
Gold exports have ceased for the
time being owing to easier conditions
in the foreign money markets and the
possibility of slightly firmer tone on
this side. The Bank of England re-
serve is now exceedingly high, and as
much of the gold recently shipped has
gone to strengthen the reserves of the
British joint-stock banks easier con-
ditions promise to prevail in London.
In April we may look for reduction
in the Bank of England rae. The
war cloud. which has threatened the
near east, is all disappearing, the sit
uation abroad now being compare
lively free from uncertainty. On this
side monetary conditions indicate con-
tinued ease. although with the ap-
proach of spring some temporary
firmness would create no surprise. So
long as general trade and speculation
retain their present inactivity, how
ever. easy money will not disappear.
AS far as the stock market is con-
cerhed there is no cause for anxiety. |
Just now the market apepars to be
taking the rest cure" to much adj |
vantage, and is undergoing a process
of hardening which will leave it. in
condition ready to respond to any ia
vorable deve opment We are now en- !
ering the spring season, period
when bear movements are not general
ly successful 1t appears to be par
Of human nature to take more hope
full views of affairs as the sun |
and the sap rises, and this /
is always a factor which though vague
es to the support of values.
Speculation is temporarily dormant,
and the investment demand for stocks
or bonds has much abated; but it is
noted thai there is good support and
ready buying of all high grade securi-
les on moderate declines. The pres
ent situation is one that distinctly
cheerfulness