Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-07-14
OUTLOOK IS GOOD
HENRY cLEWs IN WEEKLY LET.
TER, SAYS FINANCIAL coNDI-
TIoNs ARE BRIGHT.
Points Out Good Feeling Among PEG.
pie Who Control the Money Market
The Good Crop Conditions and
Other Encouraging Signs.

New York, July 13-Henry Clews, in
his weekly market letter, says:
Midsummer quiet has prevailed in
the stock market to an unusual degree
This general apathy of buyers does not
require much explanation. Many are
absent on vacations; some are recup.
Grating from recent losses; a few have
increased their holdings on the de-
cline, and all are. waiting for some
fresh stimulus that will bring an up
ward reaction. There is some reason
for expecting that a partial recovery at
least is near at hand. 1t has been rece-
ognized for months past that money
and crops would be the dominating
factors in the markets of 1908, and in
the crop situation there has been a
distinct Improvement that sooner or
later must exert an effect upon stock
exchange values. The momentary sit
uation has, of course, been greatly re-
lieved and strengthened by the heavy
liquidation of the last six months; the
improvement in this respect being
much greater than indicated by the
weekly statement of the Associated
Banks, or even by the returns of the
national banks of the country, publish
ed 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 important in
crease in circulation, and the banks
now have their resources under better
control than for long period. Per-
haps the greatest Strengthening in the
monetary situation has come from the
payment of heavy foreign loans, OF
which no statistical record such as the
weekly bank statement is available
and which consequently escapes atten-
ton except by the initiated. Our bor-
rowings abroad, however, are a. great
many millions less than in 1901, and
our ability to promptly redeem those
obligations has vastly improved our
credit abroad; factor that will count
in our favor in the future for London
already shows more partiality to make
advances on American stocks. In the
flood of pessimism which has lately
broken loose, 1t is forgotten that cura-
tive forces have been quietly at work
along with the decline: the injured be-
ing still unoccupied with their own
bruises and the uninjured naturally re-
gaining confidence slowly after the
shock of thirty to forty points de,
cline. Nevertheless, the cure has been
going on just the same, and is likely to
show tangible results when other con
ditions favor.
Better Feeling Noticeable.
There is now distinctly better
feeling amongst those who control
the money market, and fear of ex-
IRENE stringency during the coming
1 fall is much less acute. Beyond pos
sibly the usual firmness and activity
witnessed during the crop-moving per-
| iod, there is likely to be little distur-
bance; while the limited volume of
speculation in stocks and the less
capital required to carry them makes
pressure from that quarter more re-
| mote than usual. This explains the
absence of concern at recent gold ex-
ports. Gold usually goes abroad at
this season, and slight advance in
money rates would quickly stop the
ef1ux; besides, we are always pro-
ducing gold in large sums, and the
annual Klondike output is now begin
ming to arrive.
When anxiety concerning the money
market is. fully removed than the
real key to the situation will be the
harvest. II this proves satisfactory
we are sure of a partial recovery from
recent depression. if not another year
of general Prosperity. Just now all adj
vices concerning the crops are of a
most encouraging nature. A large
wheat crop and good demand for the
same are practically assured. Corn
| is reported progressing rapidly under
highly favorable growing weather.
Damages from food have been infini-
j testimal, compared with the great adj
vantage of abundant rains; while late
cotton and late corn are both rapidly
making up for lost time. Six or
seven good growing weeks remain,
and nothing short of second serious
1 Notwithstanding unknown in a
single season-can prevent good
harvest. Of course there is danger
of early frost; but this is no greater
than usual, and the chances of es-
cape are certainly even. To those who
calculate upon short crops, therefore
the chances are decidedly adverse
/ The farmer perhaps can afford to be
a pessimist, as he usually is; for
nature regulates his production, and
he wins whether his prophecies be
right or wrong; but the merchant, the
manufacturer and the speculator are
obliged to balance chances with great.
er accuracy and freedom from all pre-
judice.
Crop Conditions Improving.
| Since crop conditions are more ia
vorable the principal uncertainty tic
be considered is a possibility of furth
er liquidation caused by the disturb
ing effect of the cotton corner anc
the international situation as re
vealed by Russia's aggressions in Man
churia. The latter deserve closer at
tention than hitherto given 1t is ap
parent our government is alert to the
Importance of pressing the open dool
| in China and the integrity of that
vast empire as future market Of
immense value to the United States
Russia's designs upon Manchuria with
her established policy of rigid exclu
sion are direct menace to the future
commercial and Industrial interests q