The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-09-18
VIEWS OF HENRY ClEWs.
Well Known Finarcier Discusses Bust
ness Situation Up.to.Date.

New York, Sept l4-Henry Clews
says: Midsummer conditions which favor
ed inertia are beginning to show evidence
of gradually passing away, hence the
stock market is entering period when
increased activity may be reasonably an
ticipated. Vacations are about over, and
the all-important uncertainties regarding
the crop and monetary outlook will soon
be a matter of history. A good many
operators will shortly return reinvigor-
ated and much less pessimistic than
when they left for rest and recuperation !;
and they will also find a better under
tone to the market than witnessed for
many months past. This change is, of
course, due to the fact that the mar
ket was severely tested by the great
break in July and August, which exposed
the weak spots, shifted stocks from
weak into stronger hands and forced a
more wholesome though painful readjust-
ment to new conditions. Such readjust-
ments invariably drive prices below the
normal level and the better class of Sc
curities usually suffer severely because
they best protect the weak stocks. I'm
questionably, therefore, there are num-
Der of railroad securities which are sell
ing below intrinsic value, even after max
ing full allowance for the differences be-
tween conditions now and two years ago.
Nobody will deny that shrinkage of
80 to 80 per cent in values, involving
losses of over 5000 millions, during that
period is far beyond any changes, present
or prospective, in the business or indus
trial situation. Such a decline repre-
scented absolutely nothing but the ex-
tremities of the financial community, and
HOW that these seem to have been reason
ably adjusted there IS nothing to prevent
values recovering their normal level but
money, crop and business prospects.
Should these prove favorable, we are like
ly to see good rally in prices during the
next few months, though on the other
hand aIy disaster in these quarters
would probably force renewal of the de-
cline.
The general business situation is eX-
ceptionally sound Wall streets antics
have produced an unusually conservative
feeling in business circles, and that is eX-
cellent insurance against excuses during
the coming season. There are signs of
reaction in the iron trade as demands of
the railroads and building enterprise di-
minish, but elsewhere there are no signs
of contraction, except in cotton manu-
featuring, where the cotton corner eX-
aggerated the effects of an actual scar
city of cotton The effect of these ten
denotes is already shown in clearing
house returns, which in August showed
a decline of IL per cent compared with
last year for the entire country. 1t is
significant, however, that the shrinkage
was confined entirely to the middle At
lantic states, the western and southern
states still reporting satisfactory gains,
the Pacific states leading. New York is
still headquarters for dependency, the
August clearings here declining II per
cent, while all other cities outside of
New York combined showed an increase
of over per cent.
The stock market outlook, all things
considered, is fairly encouraging. A
more hopeful feeling prevails in bank
ing circles, though conservatism is still
the policy there. 1t is felt that recent
liquidation has greatly improved stock
market conditions, and that, if crop
and money difficulties do not arise, any
slight reaction in business, such as seems
to be anticipated, will not prevent values
reaching their normal level, something
which it is quite certain has not yet
occurred.