Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-07-13
Henry Clews Reviews the Gen.
eral Business and Financial
Situation In America
NO REASON FOR PEsslmIsm
The Money Market is in Good Shape
and the Crop Outlook is Equal to the
Averase-An Interesting View of the
Manchurian ProbIem-Live News of
the Day.

|
the dominating factors in the markets
| OF 1903. and in the crop situation there
| has been distinct improvement that
sooner or later must exert an effect
upon stock exchange values. The mon
etary situation has. of course, been
igreatly relieved and strengthened by
the heavy liquidation of the last six
months; the improvement in this re-
spect being much greater than indi-
Gated by the weekly statement of the
associated banks, or even by the re-
turns of the national banks of the coun-
try, published in response to the last
call by the comptroller. The banking
capital of the United States has not
only been greatly enlarged during the
past year. but there has been an i'm
portant increase in circulation, and the
banks now have their resources under
better control than for a long period.
Perhaps the greatest strengthening in
the monetary situation has come from
the payment of heavy foreign loans, OF
weekly bank statement Is available and
which consequently escapes attention
except by the initiated. Our borrowings
abroad however. are great many
millions less than in 1901. and our abil-
ity to promptly redeem those obliga-
TONS has vastly improved our credit
abroad: factor that will count in our
favor in the future. for London already
shows more partially tC make advances
on American stocks. In the flood OF
pessimism which has lately broken
loose, it is forgotten that curative
forces have been quietly al work along
with the decline; the injured being still
occupied with their own bruises and
the uninjured naturally regaining con-
fidence slowly after the shock of a thir-
ty TO forty points decline. Neverthe-
less. the cure has been going on Just
the same, and is likely 20 show tangi-
BILE results when other conditions ia
vor. There is now a distinctly better
feeling amongst those who control the
money market, and fear OF extreme
stringency during the coming fall is
much less acute. Beyond possibly the
Usual firmness and activity witnessed
during the crop-moying period, there is
likely to be little disturbance; while
the limited volume OF speculation in
stocks and the less capital required to
carry them makes the pressure from
that quarter more remote than usual.
This explains the absence of concern
at the recent gold exports. Gold usu-
ally goes abroad at this season, and a
slight advance in money rates would
quickly stop the effiux; besides. we are
always producing gold ii large sums,
and the annual Klondike output is now
beginning to arrive.
When anxiety concerning the money
market is freely removed then the real
key to the situation Will be the harvest.
II this proves satisfactory, we are sure
of partial recovery from the recent
depression, if not another year of gen.
cral prosperity. Just now all advices
the crops are of most
promising nature. A large wheat crop
and good demand for the same are
practically assured. Corn is reported
az progressing rapidly under highly fa-
vorable growing weather. Damages
from floods have been intinitesmal
compared with the great advantage of
abundant rains; while late cotton and
late corn are both rapidly making UP
for lost time. Six or seven good grow
ing weeks remain, and nothing short
of second serious drouth-somcthing
unknown in single season---can pre-
vent Il good harvest. OF course there
is danger Of early frost: but this is
no greater than usual, and the chances
Of escape are certainly even. TO those
who calculate upon short crops, there
fore, the chances are decidedly adverse. |
The farmer perhaps can afford to be q
pessimist, as he usually is: for nature
regulates his production. and he wins
whether his prophecies be right or
wrong; but the merchant and the spec
ulator are Obliged to balance chances
with : greater accuracy and freedom
from all prejudice.
Since crop conditions are more ia |
vorable the principal uncertainty to be |
considered is a possibility of further |
LIQUIDATION caused by the disturbing
effect of the cotton corner and the in |
situation as revealed by |
Russias aggressions in Manchuria The |
latter deserve closer attention than |
Hitherto given. 1t is apparent that our
is alert to the Importance
~ pressing the open door in China and
the integrity of the vast empire as a |
future market of immense value to the |
United States. Russa's designs upon I
Hlanchuria with her established policy |
OF rigid exclusion, are direct menace |
10 the future commercial and Industrial |
Interests of the United States, and no. |
BODY better appreciates this fact than |
our astute secretary of state, Mr. Hay
There are plain rumblings of friction |
between this country and Russia, who |
evidently fears our inevitable domina-
ton of the Pacific; but they need cause
nc special anxiety. and certainly can
not prove of serious consequence to the |
stock market. Russia is financially
weak, having committed herself to UNI
profitable railroad and industrial |
on a stupendous scale. almost
to the verge of bankruptcy. She Is IN
no condition to invite war with any
first-class power; the result of which
would certainly be defeat and probable
dismembership of loosely connected
empire. There is, therefore, little or no
danger of serious difficulty with Rus
STA. and alarmist newspaper reports
may be read with equanimfty The
plain dealing and firmncss OF American
will probably accomplish
what we desire without serious fric-
ton: so as stock market factor the
Russian Incident should not receive un-