The San Francisco call., 1899-04-10
InDUsTRlALs. STAPLES anD CROPS.


capitalization has been called down by the banks.
The rebuke was brief, but very much to the
point The junction took place Friday very
good day ior such afairs-and for few hours the
street was in an uproar prices for the industrials
dropped like pumblines and good many lamb
spectators were wiped off the street.
To those who watch the mainsprings OF business
the liquidation was not surprising. Along last fall
the commercial agencies called attention the ten
dency to form all sorts OF trusts, out OF all sorts OF
material Alter the turn OF the year this tendency
became marked, and few weeks ago assumed the
proportions OF a craze. Then the banks began to look
cross-eyed industrial combinations and this was the
beginning OF the end. The bankers objected to the
wholesale locking up OF millions in enterprises, some
of them sterling, but many visionary. The money
market slowly hardened and interest rates went up
Finally the banks began to reject the industrias as
class as collateral the brokers could not carry their
customers on account of this lack of bank accommo
daton and began to realize. This, OF course, alarmed
the street everybody rushed in sell and there
an old-iashioned break But it did last long. The
sterling ndustrals, though considerably shaken up
weathered the tempest all right and the others col
lapsed In three hours the atmosphere cleared
blocks Of capital rushed in and stemmed the break,
prices reacted and the furry was over.
At no time during this episode OF the combinations
were the standard industrials under suspicion They
are solid and safe But there were too many irons in
the fire for the safety OF the market and the banks
quietly drew them out The market will probably be
on a better basis from now A gratifying feature
OF the whole business was its brevy and the ease with
which the financial sky cleared, showing that the
finances OF the country are on a sound foundation.
The commercial situation stands about the same as
on the preceding week Business is reported quieter
but the bank cearings OF the country show gain of
5o7 per cent over the same week in 1893, and not
single large city shows falling off in trade according
to these clearngs The failures 100, against 22o
for the same week last year But the leading staples
queter and the iron trade has slackened up,
though this is said to be due to lack OF supplies and
not to any cessation of the demand which is still
enormous and which has led to the starting up OF
orty-eight more furnaces. This latter feature has
tended the market by promising increased sup
plies later on Boots and shoes are reported very
active and lumber is as firm as ever. There is no
particular change in the wool and cotton trades.
Wheat has been irregular, and during the past few
days reports OF serious damage 10 the crop in many
States by the February freeze have multiplied 1t is
admitted that the crop outlook is not as brilliant as
it was several months ago. except in California where
the prospects are excellent. Meanwhile there has
been slight shrinkage in quotations,
The local situation stands about the same Bust
ness is very good, and complaints are heard 1t
IS now pretty well settled that with one or two excep-
tons the harvest OF cereals and fruits will be very
large this year, and this gives everybody unbounded
confidence in the future. Some districts will need
another shower two to mature the crops but others
can go through without any more rain especially
north of the bay. 1t is equally settled that the fruit
crop of the Eastern and Western States will be al
total failure this year. and in most of the great
peach States the trees themselves killed by the
February freeze All fruits, apples will be short
and stocks of canned and dried fruit are reduced to
almost nothing all the country the outlook for
prosperous fruit year in California is brilliant Indeed
buyers already looking about for fruit, and SIS
per ton is reported bid for aprcots in several dis
trics this figure proves true and other fruits are
equally desired, 1890 will be the banner year for the
California fruit-grower