Ottumwa semi-weekly courier., 1903-09-10
FINANCIAL REVIEW.

tiNfNiNSiNL nEVlGWs
Several sources of anxiety on the
stock exchange are either disappear
ing or have become much less acute
than at any time this year. Among
these are the monetary outlook, the
crop situation. the supply of undigest
ed securities, the labor agitation and
cotton corner"
Thus Henry Clews, one of the most
conservative bankers of New York
opens his review of the financial con
ditions for the week ending Saturday,
Sept. 5. Partial recovery has already
been witnessed and it is to be expect
ed that no further trouble will be felt
in the absence of unfavorable develop
ments. These problems are much
less perplexing than when first Great
ed and spirit of conservative opti
mism is felt by leaders that has con-
siderably strengthened confidence.
1t is apparent that the fear felt few
months ago as to the securing of
funds for the fall moving of crops has
largely disappeared and about this
Mr.. Clews says:
"The money outlook is much better
than anticipated few months ago.
Crop demands are now commencing
and will expand for some weeks to
come. The west may be better able
to finance the crop than usual, but
the drain upon New York will never
theless have to be faced, and from
now on no surprise need be expressed
at declining reserves. While the re-
serve is not large, it is about double
that of this period for the last two
years. Speculative requirements have
been much reduced and the willing
ness of the secretary of the treasury
to deposit $4O,000,000 of internal reve-
nue. receipts in an emergency makes
the monetary prospect reasonably as
suring. A further source OF relief is
Europe's readiness to renew her cred
it's to good American borrowers, thus
leaving lenders here more freedom in
providing for home requirements.
Mercantile borrowers need have no
alarm. The banks are sure to give
ample accommodation to all legiti-
mate mercantile wants, and though
rates are likely to be high no incon-
venience need be anticipated in this
quarter, especially as many mer-
chants are pursuing hand-to-mouth
policy as simple matter of prudence
In fact, the conservative spirit dis
played in all classes of business op-
erations is likely to materially relieve
the pressure upon the money market
and ultimately strengthen the general
situation. Later on we should be i'm
porting gold in payment for our agri-
cultural products, for which we are
certain of a good demand during the
next six months at profitable prices.
In short, there is now little, if any,
cause for anxiety concerning the mon
ey market for the remainder of the
year, the worst that can happen from
present indications being temporary
flurries when the currency movements
or dividend preparations are at their
climax"
AS to the crop outlook it is believed
that part of the crop is now out of
danger and every week of continued
warm weather gives assurance that
an additional quantity has passed the
danger line. Mr.. Clews still holds the
opinion that this is not to be a year
of exceedingly large crops, but he
does not look for any great defcien-
cies. A good demand with profitable
prices is now the prospect and the
benefits of this upon the general busi-
ness of the country is self-evident.
The undigested securities that have
been heralded as the bugbear of the
financial situation during the past
few months is no longer viewed with
special alarm. Concerning this, Mr..
Clews says:
"The supply of undigested securi-
ties, which has long been menace
to the market, has, of course, not
been eliminated, but it must be remem-
bered that many of these are now
selling nearer their intrinsic value
than at any time since their creation,
ing been largely diminished by liqui-
dation they are much less of danger
than formerly
The things that are now being felt
in the industrial world are the high
prices of materials and the advance
in wages that have been granted dur,
ing the past two years. Many of the
enterprises that involve fixed outlays
of capital are being postponed. Many
railroads are delaying improvements
wherever possible until costs can be
reduced. In closing Mr. Clews makes
the following significant statement:
During the last fiscal year 159 rail.
roads, with n mileage of 145, 900 miles
showed an increase of $90,000,000 in
gross earnings during the year, or Ia
per cent, while net earnings in the
same period gained only $19,000,000
or about 10 per cent, this change be
ing almost entirely attributable to
the increased cost of labor and its
effect upon materials"
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THE AGE OF CHANGE.