The Oskaloosa herald., 1903-09-24
BUSINESS And TRADE.
Conditions vi Industry as Noted by
Henry Clews.

New York, Sept. 21.-Reports OF
crop damage seem to have been exg
aggerated as usual Injuries, howl
ever, were chiefly local, and another
week of freedom from general frost
viii PVT corn and cotton out of dan
ger. Very likely some reports of
damage may be forthcoming, but the
great bulk of the crops are already
safe, and each day materially lessons
the possibility of the injury AL
though the crops are late, it mast be
remembered that the last few weeks
have been almost ideal crop weather,
unusually so for September, and rail-
road managers as rule are confident
that the crops are now safe from any
important danger. Agriculture Is
still the backbone OF the country, and
prosperity to the farmers Of the west
and the south combined will accom-
'plish more towards maintaining our
national prosperity for another year
than any other single influence. 1t
would be more good fortune than
could be reasonably expected to have
as encouraging reports from the in.
dustrial world as we have from agrf
/ cultural interests. Indications OF re-
action in industry are multiplying.
They are not numerous, nor are they
at all serious. AS rule they are
generally nothing more than a return
from excessive activity and excessive
prices to more normal conditions. In
the iron trade, for instance, there is
no serious cessation Of activity, and
the decline in pig iron only dim1n-
ishes an already large margin on
profit. The iron trade is still in a
very prosperous condition compared
with ordinary times, and it is only
when the boom period is used as a,
standard that present conditions COM
pare unsatisfactory. AS matter OF
fact, the iron trade is in safer con-
dition to-day than twelve months
ago: and as soon as finished products
show a decline corresponding to the
drop in raw materials, more settled
conditions win appear and orders
now held back will be Forthcoming.
Nevertheless, the turn from the most
remarkable boom the world ever Wit
messed has arrived, and readjustment
in values is imperative. In the opin-
ion Of some that readjustment has
gone far enough, while others differ,
and the situation is complicated by
the finacial operations connected with
the enormous mass of securities new
ly created in the iron trade.
No change can be detected in the
monetary situation. Crop demands
are beginning to assert themselves
and bank reserves to decline in con-
sequence. Loans continue at high.
level in spite of stock market liquid;
alton, but this appears to cause no
concern among bankers because Of
the strength and character Of their
principal borrowers. The fall IS.
usually a period of stringency in the:
money market, and the last two years,
have witnessed rates as high as 10
to 20 per cent in the first half of Sept,
TENDER; but this season there have
been no ffurries of consequence so!
far, though temporary higher rates
would cause no surprise. No e2-
IRENE stringency, however, seems to
be anticipated in spite Of unsatisfac-
tory features, for the reason that
speculative demands are small and
will not be encouraged, and the
knowledge that the treasury will lib
crate $40,000,000 Of cash if necessary
effectually wards off unnecessary con-
Germ. One thing is certain, that the
money market is adequate to all
legitimate requirements, and that de-
mands Of questionable nature will
receive scant consideration Very
soon we shall be importing gold from
Europe, the drop in sterling bringing
us nearer the moving point. The de-
ciines in cotton and wheat are also
favorable to an influx or gold. Should
Europe attempt to delay this move
ment we could easily extend our cred
IL in the European markets, so that
relief to the local money market from
that quarter is sure in any event.
Some surprise is expressed at the re-
cent low record prices Of British con-
soils, the chief reason being That these
have been sold by both English and
American holders for the purpose OF
protecting weaker securities. 1t Isl
known that American institutions
have sold very considerable amounts
during the last few months; an addi-
tional cause Of weakness being the
uncertain financial policy of the Brit
fish government.