The San Francisco call., 1898-01-17
MARKED IMPROVEMENT IN TRADE.

THE spring demand for merchandise has al-
 ready set in, if to judge by the
 bank cearings of the country, which gained 376 per cent last week. the largest gain for long time. This Is all the more encouraging in that 1t is not often that this demand in early. It ually makes its appearance about the first of Feb ruary and for several years has not appeared at all There IS evidently general disposition to go into business much heavily than usual which in dicates confidence in the future. Indeed Brad streets Financial Review says that Both specula- ton and investments have been active during the past week. The best feature of the market has been the very heavy dealings in bonds at generally higher prices, both for the high grade and and speculative classes. Transactions rising they have to S34ooo,ooo or S35,oooooo of bonds on the Stock Exchange, with the trading distributed among unusually large number of different is- sues, would indicate a large demand for invest ments and the growth of confidence in regard to the position and future of the market.
 One of the leading reasons for this augmented business on the New York Stock Exchange is the marked increase in railroad earnings which were over $43, ,3oo,oOo, in December, gain of Io5 per over 1897, and which in fact were the largest earnings in the history Of American railroads. The iron furnaces also report increased output, and orders in this branch of trade are unusually large TOT tnlS tune or the year Inc WOOlen manufaC- turers also buying wool heavily and have rush of orders to fill from The cotton lecturers, the contrary, have been overloaded by excessive production, and find no increase in the demand gain in prices The commercial fail continue decrease, those last week being 323 against 47o for the week in 1897 and 4I2 in I8o6. Wheat exports have fallen off, owing purely to the usual holiday dullness in Europe and not to any decrease in the demand itself; but corn ex- ports have increased 100000 bushels during the past week. The distributive trade throughout the country is good, and whatever tendency is exhib- ited in prices is upward rather than downward.
 The local situation shows particular change if except the demand for merchandise for Alaska which has now fairly opened and is steadily increas- ing. We getting share of this business up to date, and will probably continue to get it with the exercise of ordinary commercial enterprise It is too rich plum to be allowed to slip through our fingers. It IS not transient but a permanent trade, and if properly fostered by Dur local mer- chants will increase the wholesale business of this port by millions of dollars annually
 The cratic character of the rains keeps local trade very unsettled. Showers succeeding each other with sufficient rapidity, but except along the mme- diate coast they do not amount to much The pro- tracted cold snap has kept back the growing grain and the outlook for large crop is not as bright as IL HilRHt DS Olll, Wltn a ldlr precipitation from now on an average harvest will probably Be secured The cereal market reflects the uncertainty and the different grains are becoming very sensitive Wheat remains about the same, but barley is steadily ad- vancing and feed has got up to ST per cental, which ls over the average price of late years. Oats too, are rising, and hay moves up a notch every few days If the present lack of moisture continues there IS no knowing where hay and the local grains will go But good rains would keep them down to reasonable values. and here is where the uncer- tainty comes in The conditions affect ing merchandise, country dealers are cautious about laying in heavy stocks until they have fair idea of how the crops going to turn out The matter will probably be settled way or the other shortly, when values will become better defined
 But short grain crop this year will not prove az serious a calamity in some former years Times are improved that deficiency in the crop is certain to be made up in greatly enhanced values However from present indications, there will be no serious shortage