The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1910-05-03

temporarily exhausted; either by the
excessive issue of new securities, or
| by a reduction in savings. Time is
required for correction of such a
situation as this. 1t is known also
that further large security issues are
imminent. and that inducements eth
err in the form of lower prices or high
er rates of interest or privileges of
some sort will have to be made to
secure a market. The knowledge of
this contingency also affects security
markets adversely. Dividend increas-
es have apparently become less pop
ular. and seem to be a signal for
selling and lower prices; as witness
New York Central, United States
Steel and other stocks which declined
steadily after dividend increases, and
have been criticised in some quarters
since.
The monetary situation excites
some concern, more perhaps than is
necessary. New York bank reserves
are low: consequently preparations
for May disbursements, the renewal
of gold exports, lessened interior
movement, Treasury absorption and
cotton financing forced a temporary
advance in call and time money. The
possibility of Europe making still fur
Their demands upon our gold supply
exerted an unfavorable sentiment eff
feet at time when market opinion
was already supersensitive. 1t had
been hoped that the decline in COM
modities would stimulate exports, and
it is believed that Europe will readily
take our new issue if terms are made
satisfactory. But the fact that Lon
don is holding off for better terms
inevitably affects this market adj
versely. AS to the future of the local
money market, there is no cause for
concern. Funds have been returning
and this movement will be shortly re-
newed. It is true the West has made
large advances to land and other
speculative schemes upon which it
would be impossible to realize quick
ly; but the best advices from West
ern bankers are that this movement
has not run to such a dangerous
point as is sometimes believed. There
is every reason to believe that the
Western banks are abundantly able
to take care of the situation. An
updercurrent of uneasiness is devel-
oping regarding the political situa-
ton. 1t is quite certain that we are
in for a period of fresh tariff agitation
during the coming autumn. The ag-
gressive attitude of Washington to-
tons is also much dsliked in finan-
cial circles, owing largely to the UNI
certainty which is produces. Repub-
lican party squables also have an un-
settling influence.
When it comes to the business sit
uation, that is undoubtedly spotty
Reactionary tendencies are observa
BILE in many directions, and the trend
of nearly all commodity prices is
downward. Consumption has been
checked by high prices, and here and
there are signs of overproduction
notably in the iron trade where an
organized restriction of pig iron is in
prospect. There is also more or less
continued curtailment in the cottor
goods industry, due to high prices anC
complications arising from the fluc
tuations in cotton. The reaction il
business, however, is one which
should ere long, prove beneficial be
ing more in the nature of a genera
: readiustment to a lower price level
| which. when the limit has beef
reached, will prove stimulating ant
| wholesome. There is no doubt tina
as soon as buyers are convinced tina
bedrock is reached, fresh rush o
orders will be received
| Attention is now being closely riy
i eted unon the crOD outlook Whoa