The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-11
DEVELOPMENTS LAST WEEK
WERE MOSTLY OF A FAVOR
ABLE NATURE
DETERRENT EFFECT
OF LABOR STATUS
Ability of Manufacturers to Advance
Wages Has About Reached the Limit
Industrial Situation Will Bear
Careful Watching-Crop Prospects
and the Railroads.
Special to The Globe.

Special to The Globe.
NEW YORK, Aug. 10.-In the main,
developments during the past week
have. been favorable. The principal
crops are making excellent progress,
and the country now seems assured of
nothing less than a big corn crop in
contrast with a failure a year ago.
This apparently is the keynote of the
situation for the time being. Nearly
all advices from the West are of the
optimistic nature; and, if present ex-
pectations are realized, the farmers will
nave much better season than last
year. From the South, where an ample
crop OF cotton is promised, the reports
are also encouraging; and the general
impression is that the entire country
will have fall trade equal to if not
slightly in excess of last year. While
the crop and business situation is sat
1sfactory the industrial outlook is
hardly as promising as at this time in
1901.
The unsettled condition of labor ex-
erts a deterrent effect upon new en-
terpr1ses, and the increased costs of
production which the demands of la
Dor are imposing are creating a situa-
ton that causes more or less anxiety
- concerning the future. Profits are al
ready declining, and the present high
leVeI OF prices makes it impossible for
manufacturers to compensate them
serves by further advances that would
simply curtail production and leave the
producer in no better condition,
Wages Reach the Limit.
1t seems quite probable that the abiI-
lty OF manufacturers to advance wages
mas ABOUT reached the limit, for the
reason that advances in wages now
mean still higher prices for products.
winch cannot be obtained under pres
ent conditions. Meanwhile manufacture
ers are confronted with another prob
Ien-that of new competition-whi
combined with new methods and small
capitalization, is making active head
way against the older heavily capital
lied concerns.
Altogether, therefore, the industrial
SITUATION viii bear some careful watch
Ing, the indications being that we are
nearer a reaction in this part of our
economic machinery than is generally
supposed, II 1t has not been already
entered. For this reason the strike few
er cannot be regarded with the eoua-
nlmlty that would be possible if pros
perlty promised unknown continuance.
With the plain limitations that we are
near a downward turn in prices and
profits much of the strike agitation
VIII prove ill-timed and injurious.
No Chance for Bears.
The financial outlook is unchanged.
While crops and business promise 90
Wen there is no opportunity for bear
ism demonstrations. On the contrary,
the situation is such that the big lead
Gil
campaign of greater or less duration.
PROVIDED monetary conditions permit
ted. Here is the chief obstacle. The
banks are practically loaned I'D to
their full capacity. There is a general
FEELING among bankers also that con-
tractlon is more desirable than further
expansion. Within the year ending
July bank loans in the United States
have increased 1855, 00O,O
VI course there has been an enor-
NOUS increase of banking facilities
during this period, but against this in
crease in loans there was an increase
IN specie holdings of only $4,000 900
ana small decrease in legal tenders,
showing low condition of reserves.
Then crop demands will be large
larger than year ago, when the corn
loss leSsened the drain on the banks.
ana mercantile requirements will be
tully up to the average, SO bankers
rightly expect a good demand for all
available funds at profitable rates Thic
situation renders further gold exports
OF consequence improbable. and the
payment of our foreign obligations will
be either deferred to a mo1t, -conven-
lent period or done through more con-
Eenlent channels when cotton and grain
begin to move.
What Liquidation Would Do,
Liquidation of some of the svndica foe
IN Which large sums are tied up would
he!leVe the monetary situation, and in
TINS connection an active and stronger
stock market would prove very oppor
tune Should no unforeseen accident
intervene there is every reason to sup
pose that the big men will en- ?avor
to take advantage of present Favorable
conditions to lift the market. Thew
nave stocks to sell, and buyers can
only be tempted by creating an active
and stronger market. Just when such
an attempt is likely to be made nobody
can determine, but the early fall. when
vacations are over and crop demands
nave reached their maximum seems
the most opportune time. If these
SurmlSeS prove correct we NAV have q.
fairly active and better stock market.
oHerlng good opportunities for trad
ing. important deals are still in pros
pect, which will have a stimulating eff
feet upon values.
The whole railroad map of the Unit
ed States is undergoing reconstruction.
and it is not to be assumed that these
plans are being pushed without advan-
tage to their promoters. AUGUST pee
sents brighter promise than July.
though 1T should not be forgotten that
prices are at skyScraping level. and
unexpected disaster might precipitate
a very unpleasant reaction.