Omaha daily bee., 1902-08-18
CONFLICT IN STOCK MARKET
Report of Henry 0lswu Shows Tive Infu-
encsI at Work.
BOUNTlfUL HARVEST NOW PROMISED
Yet Practical Certainty that Extensive
Operations on Bull side Would
PrecipitRte sharp Contingency
and Possible Trouble.

NEW YORK, Aug. 17.-Henry Clews Of
the banking firm Of Henry Clews & Co.
says:
Two strong conflicting influences. crops
ana money, are at work In the stock mar
ket. The promise of a bountiful harvest
is a most powerful support to values in
spite Sp OF their high level yet the PTaetica!
the pull Side Just now would precipitate
sharp stringency. ana possible trouble in
the financial markets ~etfectually stops any
excessively backed operations in that quar-
ter. While unusual crop and business de.
mands are close In sight, the bank reserves,
coVntry, are at a very low ebb owing 70
me tremendous expansion in credit during
loans IN American banks have Increased
S~zoo.OVo.OV0 IN a year, while the Increase In
Is certain, therefore, that no additional
strain can be imposed upon our credit
system until the crop and business require.
grave risks, which are not likely to be in
vited by those who really control market
movements. Two possible sources Of tenn
OF, liquidation by some of the syndicates
which have been chiefly responsible for
be expected from the treasury, as in for
mer years, when the government was with
ket. Gold imports are not at all improbable
IN case or severe stringency; for the three
great banks of England, Germany. and
pecially the Bank of France, which is
carrying the largest amount in its history.
and II the precious metal Is needed here
increasing Indebtedness to Europe. The
latter. there is, excellent reason for be-
neV1ng, WeNshan soon be reducing by pay
ments in grain and cotton. AS for liquida-
ton by any of the great syndicates now in
Some OF the securities so held NAV he
gradually distributed, thus releasing Inn
portant sums but 1t must be remembered
deals In progress which tie up enormous
sums OF money, to say nothing of the
portant though silent factor in the market.
How, far the stock market magnates may
pc able to Increase the supply of loanable
estimate, but II is not believed that they
VIII choose a time when crop and business
demands are at their highest. look,
therefore, for a firm money market with
out any apprehensions regarding the flu
ture, provided misguided. too-previous bull
Enthusiasm is only held firmly in check. In
fact, high rates for money would prove a
wholesome, restraint upon many or the
questionable schemes which are now being
Heated, and which bankers owe it to their
trust to seriously discourage by every
legitimate means at their command.
difficult to accurately measure Just now
our crops Will not be entirely free from
DANGER by frost for another three or four
weeks, and this being an exceptionally cool
season such contingency Is the more i'm
minent Some diminution of the splendid
lnulcatlons or the last government crop
should II come. According to the August
government report the outlook is for the
largest crop OF corn CT record, the socund
largest crop of wheat, a big oats crop and
a large cotton crop, the yield of many
other crops also being above the average,
II we have crops of $50, 0O0,O 600 bushels OF
wheat and 2,56O,00O,0 900 bushels of corn
there Will be enormous traffic in store for
the railroads.; the corn crop in the form
live stock. etc.i alone being a big item
IN the freight bills. But the farmers are
likely to benefit even more than the rail-
and, allowing for declines in prices
or injury by frost, the growers of wheat,
and cotton are almost sure to receive
between 500. % 1000 and $500, 900, 900 more
this year than last for their crops. What
Will be the effect of such a harvest upon
business? Inevitably II must prove a very
great stimulus. and all accounts from the
west are noticeable for confidence and ex-
pectations of another year OF prosperity.
unfortunately these prospects are not fully
shared In the east. where strikes have
checked Improvement, and in the south
progress is less pronounced. Yet there is a
home demand for foodstuffs, and we
are likely to find a good export inquiry for
our corn and cotton, though Europe is not
In as great need of our wheat as last year.
and strong condition. Efforts NAV
be made by minor cliques or Spectators
10 put up prices, but buyers should wait
TO ascertain the movements of the real
who will probably bide their time
the most favorable opportunities. Until
he monetary outlook Is more assuring
selling. on all the sharp rallies is the most
advisable course. Squalls may thu be
safely avoided.