Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-09-10
STOCKS AND BUSINESS.

There is decided difference OF opin-
ion about the future of the stock mar
ket, A great deal. OF talk Is heard about
important pending deals and the deter
mination OF the big holders to put the.
market higher. These rumors may and
may not be true. : ~ > Good railroad
earnings are one Of the most satisfac-
tory features. OF the times. Net earn
ings do not always meet expectations,
because Of increased regular expenses
and the extraordinary OUTLAWS for Inn
provements and rolling stock, which are
being met out Of current earnings.
These extraordinary expenses, however,
will not continue, and managers will
easily have it in their power to main
tain net earnings at a level that will in
sure steady dividends. The period of
change from small train loads to big
ones is rapidly approaching completion;
and, tho costly one, will shortly bene-
fit the companies in low cost per ton
per mile. There is another very impor-
tant fact which sustains the courage of
constitutional bulls. and that Is the sat
isfactory condition OF general business.
Clearing house returns are much in ex-
cess Of q year ago, which considering the
inactivity Of speculation is unquestion-
able testimony OF trade activity. The
west as whole seems to be enjoying
exceptional prosperity in spite of set
backs here and there. AT times 1t ap-
pears as IL the country had reached the
crest OF the wave Of prosperity; and yet
the momentum has been so great that
1t Is premature to predict With any posi-
tiveness that the turn has come. In a
few markets the highest level and the
largest production have certainly been
reached; yet 1t seems as II other depart
n;ents Of business must have their share
OF prosperity before the turning point
can be definitely said to have been
reached. At the same time prices of
many commodities are very high, and
the profits thus induced are greatly
stimulating new competition. 1t is
somewhat remarkable and not a little
suggestive that in spite of the great
trusts which have been formed during
the past four or five years there is little
complaint OF oppressive monopoly. Is
this because outside competition is act
ing as a restraint upon these powerful
corporations, or is public opinion less
hostile than formerly? Very likely both
factors are partly responHsle. and the
trust managers find it Improbable and
unsafe to wholly disregard publiceopin-
ion. Another indication OF the satis-
factory condition OF business is the
small number and reduced volume of
business failures compared with previ-
GUS years. Business men are generally
anticipating good fall trade. and 1t is
gratifying to note the prevalence OF a
+nyaa ~ Ht.,,r Sok. ~
prevent overriding. OF the general
soundneks Of business there is no ques-
ton, and thus far there are few or no
complaints OF overproduct;on.
The above include the favorable fea-
lures OF the situation upon which all
talk OF further bull movement is
based. In my opinion they are all coun-
terbalanced for the time being by two
factors, the monetary situation and crop.
conditions. Last Saturday the surplus
reserve dropped below $4,000 900,
against S25ooo,ooo one year. ago. The
currency movement is not by any means
at its height. and rising reserves can
hardly be expected before the end OF
October. The treasury continues to alb
sorb funds very freely, and Secretary
Gage is disposed to pursue conserva-
tive policy IN the purchase of bonds.
Scarce money is much greater impede
ment to a bull market than high money.
and it Is scarcity that the bull leaders
would have to contend against. Some
relief will OF course be had in case of me-
cessity from gold imports. We could
draw considerably upon Paris; exchange
being already about point from the
importing point. We are also receiving
moderate sums from the Klondike, tho
not sufficient to make any material i'm
preston upon the money market. II
must be remembered that prices are
high and that larger sums are needed to
move the same amounts Of products or
securities. No prolonged bull move
ment can be expected until easier condi-
tons prevail in the money market, and
this can only be accomplished by either
further liquidation In stocks or waiting
until the crop demands have been satis-
ned. The crop situation is decidedly
better than one month ago and corn
seems to have made considerable gain
in condition; SO that estimates of yield
have been further raised.