Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-09-28
Henry CleWs Says Prophets of
Evil Are Actively Preaching
Business Reaction
PEssIMIsTlc MOOD PREVAILS
Wall Street Much More Sensitive to
unfavorable Than to Favorable De-
veIopments at Present-Equilibrium
Between Supply and Demand Must
be Restored to Normal.

New York, Sept. 2S.-Henry C1ews in
his weekly financial letter says,
Wall street is still in a pessimlstic
mood and much more sensible to un-
favorable than to favorable develop-
ments. Bad news almost invariably
brings out fresh selling oveme
while good news fails to stimulate buy
ing. Although these tendencies are a
disappointment to those who believe
recent declines have amply discounted
all adverse conditions, the main sources
of weakness are not surprising. being
still confined TO Wal street proper ana
not outside of it. The decline in steel
securities for instance, has been vastly
more due to the necessities of certain
holders than to any reaction. present or
prospective, in the steel trade: popu-
lar opinion Notwithstanding. A great
deal of weakness has also been attrib-
uted TO apprehensions concerning the
harvest, the monetary situation and the
VI boSJiIGSS T6aCIiOn.
while there is a striking disposition to
overlook the fact that some of these
dangers are already practically over.
and that others have been thoroughly
anticipated.
The prophets of evil are now actively
engaged in preaching business reaction.
Such may no doubt be expected. in a
reasonable darraa h,If ~ 4, rrn11 - 49,.
IN mind that no such excuses have oc-
Cured in the commercial world as were
so disastrous to the financial commune
ity. While industry and trade must
inevitably share the financial reaction.
there is no eason for expecting the
same degree of depression in the former
as has been endured in the latter. De-
preston is always after-effect of over
doing or overproduction, and when the
Industrial markets become as surfeited
with goods as the financial markets
we're with securities then we may ex-
pect serious reaction in general bust
ness. AS 1t is, the latter is suffering
chiefly from sympathy with Wall
street. and also from high costs of
production. The first cause affects new
OF which we were having
rather too many. and the second is
largely due to the labor movement. Ev-
cry day 1t is becoming more and more
apparent that industry Is being chacked
by high priced raw materials and la
Dor; for cannot afford the
present high prices, and some form of
reimbursement Will have to take place
the equilibrium between supply
and demand Is restored to normal. This
is not an immediate contingency, but 1t
Is n to be kept in sight; one TO be
anticipated, not with fear, but with sat-
Isfaction, as an approach of a more
and substantial basis than we
two or three years.
AS for other conditions, they are gem
orally favorable. The market seems
this fall: and, If the present conserva-
tive policy of those who control the
purse strings continues, we will prob
ably witness a return to cheap money
when the harvest is over, and funds
back from the west. The crop
question is at last practically settled.
Damage reports proved exaggerated;
last few weeks provided admirable
weather. and a yield of not less than
900, 000, 900 bushels of corn is pre-
licted, If not more. This means a big
.onnage for railroads and good times
or the farmers in general. A favorable
was a break in the grain mark
IT'S and consequent large export orders,
which somewhat counteracted the
scarcity of produce bills due to a late
lotion movement; this in turn tending
o defer gold imports. Our banks, how
,ver. are in strong position, showing
better reserves than a year ago; a sit
lation true moi only of New York, but
the reserve centers turnout the