Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-14
cLEws AND CAUTION.

| AT present there is no cloud of any size
upon the business horizon, and conf
cence and activity are leading fea. lrss
OF commercial circles, yet there are al
ways present those who shake their
beads and fear for the future. Henry
Clews says not a few men whose judg
ment is entitled to respect believe that
the present rush of business and traffic
wishes to disagree with them and every
one will hope their views may prove
correct; yet Ciews thinks facts can not
be ignored, and these point unmistakably
towards reaction, Notwithstanding there
are quarters in which the onward move
ment may continue or break out afresh
in spots hitherto neglected. There is for
instance, he says. strong evidence Of a
boom in real estate, which is invariably
sought for investment when other fields
have lost their attractions, but such OPP
erations have always marked the cul-
mination of an American boom" He
goes on to say:
The two most likely starting points of
reaction will be contraction by the
hunks, and the influence of new compe-
tition. OF the former there is no indica-
ton as yet, except that banks are be-
coming more cautious lenders since the
recent practical failures or two or three
large industrial enterprises. Fortunate
/ y the monetary outlook is satisfactory.
and nothing will do more towards keep
ing us in a sound and prosperous condi-
ton than wise restraint on the part of
the banks in granting credit. The coun-
try is still in need of a scientific and
elastic currency system; the absence OF
which vastly increases the danger of
panic in times of retrenchment and dis
aster But congress sleeps; forgetful
that the promises of two national cleo
tons to provide sound currency sys-
tenn are still unfulfilled. What If the
country should fail to give the party in
power a third chance to redeem ante
election pledges?
New competition is now growing with
sufficient rapidity to be factor in the
Industrial shares. New plants and en-
largements are being constantly started
and others projected. At present the de-
mand for commodities seems sufficiently
active to keep all establishments fully
employed; but price concessions are be-
ing made, and coming reports are likely
Ia make less favorable balance sheets
than last year. The statement of the
United States Steel Corporation, tho
good one, was not so satisfactory as eX-
pected.
Railroad earnings continue very fiat
tcring, and this In spite of falling off
in the grain movement at the west. Cen
eral traffic is still exceedingly heavy,
and railroad officials appear confident of
Its continuance. The coal trade is in ex-
cellent condition, demand being heavy
and prices high. The increase, however,
in Jersey Central dividend from to s
per cent savored more of stock specula-
ton in behalf of Reading than good rail-
road management Such strength as the
market has lately shown was entirely
due to powerful manipulation aided by
easy money. Rising bank reserves are
to be expected for some time to come,
and as the big leaders are all necessarily
enlisted on the long side, having stocks
in abundance to SELL it is quite probable
that In the absence of unfavorable news
we may expect continued manipulated,
active market. The greater the advance
from present prices, however, the great
er the feverishness and constituencies to
unfavorable news. There are not a few
operators who are now openly favoring
higher market in order to secure
safer basis for selling later on. In any
event the market will require close
watching, and l can only repeat our
former advance of selling long stocks on
all the pronounced advances hereafter.
1t has been decided to present Adj
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