The San Francisco call., 1903-12-07
THE READJUSTMENT.

closed rcopening. Thus number OF paper Mills III
the State of New York which closed down fortnight or
so ago have just resumed operations In the iron and
steel trade conditions irregular and unsettled
but reports to Bradstreets say that the shutdowns
than offset the assumptions
Some 100000 industrial employees have suffered cut
in wages of per cent more and preparations are
being made to secure similar reduction affecting 100000
by January. In some other parts OF the
country wages have been advanced but the reductions
are more numerous than the advances 1t is trying to
the wageearner have his wages reduced, especially
this time of the year. but thus far no trouble mas re-
suited from the cuts the wage-earners are saio TO
realize that with gradual decline in prices for many
and in fact most commodities the returns OF capital are
smaller and growing still smaller The textile mills of
Philadelphia are running half time, window glass fac
tories reporting competition by foreign importations
and the footwear factories of New England turning
less than for time back Winter weather. while
improving the obbing and retail trade in holiday novel
winter clothing, cutting down building opera
and restricting the demand for lumber and struc-
tura material Against this however there increas
ing small orders for iron and steel products. Woolen
goods sales are falling short of expectations and the silk
factories report business thus far this below earlier
estimates.
The Christmas business of the country reported fully
up the volume of last year.
Provisions have kept UP their slow decline at Western
packing centers, but during the past few days the Chi
cago has been showing increasing strength with
speculative activity growing and packers and operators
more confident of the future The San Francisco mar
ket however has become dull during the past week. and
hams and bacon have been marked down in
Taking the country whole, while commodity prices
have been steadily settling, lines such cotton
and dairy products, have risen sharply that Duns
index number has actually increased to oB223 against
o7.825 month ago. The sensational rise in cotton is
probably the cause of most of this increase.
This advance in cotton the feature of the week.
At New York. New Orleans. Liverpool and the large
English manufacturing towns the excitement intense
The Government report. showing decrease in the cot
output prices soaring skyward and caused
sternation in Lancashire. where it regarded
public calamity This decrease two-edged sword,
however and while seriously damaging the mill opera
tors and their operatives in England is enriching the
American planter, who is making money than
many years In consequence the South is sending in
rosy reports of activity and confidence in trade, with
plenty of money in circulation and collections easy 1t
is i'll wind that blows nobody good.
The railway earnings of the country steadily fall
ing off, AS far reported in November they only
4S6 per larger than during the time in 1902
and when the increased of material and the higher
wages considered doubtful whether there any
real increase The bank cearngs for the week showed
loss of per from last year. with the gains and
losses about evenly distributed among the leading cities
The failures for the week 33I against 2o4 the
corresponding week last year This latter item makes
poor showing for business in 1908 compared with pre-
cedng years. especially the failures OF late have been
running large in liabilities
The New York stock market continues quiet and
harmless Liquidation has apparently its course and
there signs that portion of the public is gradually
returning the speculative Most of the i'm
provement shown by the railroads. as the industrias
have been less weak and in disfavor This is
attributed the unpleasant developments in the steel
and shpbuildng trusts. which gave the public an un-
pleasant shock and did much shatter confidence There
is general inclination thoroughly explore the
status of corporations before investing in them, and
until of the great combinations have been thus in
vestigated not much money will go into them The
public has good deal of money left spite of the heavy
shrinkage in values during the past year. and is ready
invest it if it can be assured of reasonable amount of
safety.
The money market has thus far been an agreeable
surprise all around Instead of the marked strngencv
anticipated earlier in the we having COM
parativcy easy market for this time of the wear with
gold flowing into the country from Europe and Austria
liza, mention Japan This influx of gold has been
excellent for the blues into which the country
had been steadily drifting and reports from New York
say that not only the spirit of despondency and pe
simsm disappearing but the country is actually getting
optimistic again This excellent illustration of the
homely old admonition bridge before YOU
get TO it.
To summarize. the business of the country while nm
dergong great change from the recent boom TO mod
and normal conditions is in excellent condition at
bottom and is like great ship promptly obeying its helm
In gusty weather We still all right and nobody has
any to be alarmed over the outlook
THE BACKBONE OF TRADE.