The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1902-07-25
CLEW'S FINANCIAL REVIEW.
New York, July 10, 1902.


situations, which have been the chief
uncertainties for some time past. APP
prehensions concerning the labor out
look have been fortunately relived by
the collapse of the freight handlers
strike at Chicago, and by the wise de-
cision of the coal miners not to order
q general strike. In consequence OF
these Developments the market show
ed a more hopeful tone and signs OF
increasing activity.
More now depends upon the harvests
than upon any other single element.
The outlook in this respect continues
encouraging. Corn, the pivotal crop
this year, promises well; and, If con-
ditions continue favorable, we may
have a bumper crop, the acreage be-
ing the largest on record and condi-
tion above the average. Even If some
damage should follow later on we
shall still probably have an average
crop, and the season is now so far ad-
yanced that repetition of last year 8
damage is practically impossible. 1t
was about this time in July, 1901,
that the drouth did its worst and the
first correct estimates of damage were
made public. The crop situation now
is, therefore, in strikingly favorable
contrast compared with 1901, except
as to wheat, which proved bumper
crop. This year, however, we are
promised wheat in plenty and to spare
for export. Oats are in satisfactory
condition, and the cotton crop promises
a large yield, even if early estimates
have to be modified. So far, then, the
indications are that we shall have
abundant harvests and good foreign
demand for our surplus. This is OF
vast Importance to the business COM
munitv, for it assures at least one more
season of national prosperity, which
there were not few reasons to believe
had, for the present at lesat, reached
the zenith. Another crop failure
would certainly have precipated re-
action, not merely in the stock
market, where it would be most dis.
tasteful, but in general business and
industry. where expansion has been
going along at marvellous rate be-
yond all expectations. Every week
now serves to reduce the possibilities
of such disaster and warrants CORE
spending growth of confidence.
The last monthly foreign trade re-
turns present some striking facts. The
merchandise, exports for June were
only $50, $50, 600, the smallest total
since August, 1898. During the twelve
months of the fiscal year there was a
decrease of $105, 900. 900 in exports, in
Guiding $62, 600, 600 in corn, $21, 600, 600
in cotton and 81, 900, 900 in oats, while
wheat increased $50, 900, 900. This is
the unsatisfactory side of our foreign
trade, and illustrates very plainly the
effect of the corn damage upon our
foreign trade balances. While our
exports have been checked by poor
hargests our imports have been won
derfully stimulated by home prosper
itv, which not only encouraged the
importation of luxuries but also
forced the importation of larger guam
titles of raw and half manufactured
materials, notably steel billets and
plates, for which American mills
could not fill the demand. For the
same reason our exports of steel man
ufactures have declined, especially
in view of the depression in the
European iron trade. In contrast,
English steel companies have been re-
ducing their dividends, seventeen
leading companies reporting shrink
age of SO per cent n..proEts last year
compared with the previous year. Our
trade balance for the last twelve
months-excess of exports over i'm
ports-was only $479, 600, 900, against
1864, 900, 900 the year previous, prov
ing, contrary to popular opinion, that
national prosperity is not incompatible
with declining trade balance. This
year, however, we are likely to see
the current turn again in the other
direction, as a large corn crop will
prevent the deficiencies shown last
year and ring our exports back to
their former level This is of great
Importance in the foreign exchange
market, and will do much towards
averting any monetary stringency in
this market during the fall and winter
months. In all probability we will ex-
perience firmer rates for money before
long. Crop and business demands will
soon set in, and bank reserves are low
both here and at the west. Fortunate
ly, Europe is able and willing to loan
freely in this market, the amount OF
foreign money employed here in loans
being unusually large; and our bank.
ers are depending upon the good har,
vests to pay back these loans-anotheI
instance of the special bearing this
year of the crop situation.
During the latter half of the week
the market displayed decidedly more
activity and strength. chiefly among
the better class of low priced railroad
issues, which have been comparatively
neglected, and afford better specula
tive opportunity for the reason thai
they involve less risk than many Of
the high class stocks that are selling
at "sky-scraper" prices. For the first
time in many weeks the public show