Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-08-11
HEARING A REACTION
Henry clews' Banking House
Believes Industrial Situation
Will Bear Watching.
Abundant Crops Promised in
West and South Fall Trade
Hopeful.
Ability Of Manufacturers to Ad
vance Wages Has Reached
Limit-profits Curtailed.


weekly review OF financial conditions
says In the main. developments dur
ing The past week have peen favorable.
ihe principal crops are making excel
lent progress ana the country now
seems assured of nothing less than a
big corn crop in contrast With fail
lure year ago. This apparently 5 the
Keynote of the situation for the time
being. Nearly all advices from the west
fare of an optimistic nature. and, if
present expectations are realized the
farmers will have Il much better sea-
son han last year. From the south.
where an ample crop of cotton is prom
ise1, the reports are also encouraging:
and the general impression is that the
entire country Will have a fall tsade
iequal 10 if no. slightly in excess of last
year While the crop and business sit
uation is satisfactory. the industrial
outlook is hardly as promising IS at
this time in 1901. The unsettled c0nii-
tion of Labor eXerts a deterrent effect
upon new enterprises. and the increas-
ed costs of production which the de-
indnds of labor are imposing are ere
ating a situation that causes more or
less anxiety concerning the future.
Profits are already declining. ana the
present high level of plicer makes il
impossible for manufacturers to COM
pensate themselves by further advances
that would simply curtail production
i 4.
uation.
1t seems quite probable that the abil-
r ity of manufacturers to advance wages
has about reached its limit. for the
reason that advances in wages now
mean still higher prices for products,
which can not be obtained under pres
ent conditions. Meanwhile manufact-
urers are confronted with another
predetermined of new competition
which, combined With new methods and
small capitalization. is making active
Roadway against the older heavily cap
italized concerns. Altogether there
fore, the industrial situation will bea1
some careful watching. the indications
being that we are nearer a reaction in
this part of our economic machinery
than is generally supposed, If it has not
been already entered. For this reason
the strike fever cannot be regarded
with the equanimity that would be pos
sible III prosperity promised unknown
continuance. With the plain intima-
tons that we are near a downward
turn in prices and profits. much of the
strike agitation will prove ILL., timed and
Injurious.
The financial outlook is unchanged.
While crops and business promise so
Well there is no opportunity for bear
ish demonstrations. on tse contrary,
the situation is such that the big lead
ers might easily inaugurate bull cam
paign of greater or less duration, pro-
vided monetary conditions permitted.
Here is the chief obstacle. The hanks
are practically loaned up to their full
capacity. There is a general feeling
among bankers. also, that contraction is
more desirable than further expansion
Within the year ending July / bank
loans in the United States have in
creased S265.00O.0OO. OF course. there
has been an enormous increase of
banking facilities during this period,
but against this increase in loans there
was an increase in specie holdings of
only $33,000.000 and a small decrease
in legal tenders. showing low condi-
ton of reserves. Then, crop demands
will be large-larger than q year ago.
when the corn loss leSsened the drain
on the banks: and mercantile require
ments will be fully up to the average.
so bankers rightly expect a good de-
mand for all available funds at profit
able rates. This situation renders fur
Their gold exports Of consequence i'm
probable. and the payment of our for
eign obligations will be either deferred
tic Il more convenient period or done
thru more convenient channels when
cotton and grain begin to move.