The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1903-09-07
CONSERVATISM RULES TRADE.

TRRFNT conditions in trade continue cheer
ful The feeling OF pessmism throughout the
~ country so pronounced during the past lew
weeks. and which had begun to unduly affect bust
ness has largely passed away as the country
realizes that there nothing in sight to get irignt-
ened over. But conservatism has asserted itself ana
- nresent Is the ruling feature all over the land.
There is no longer any perturbation Wah street
has had its spasm and after the great banking inter
ests had assured the commercial public that condi-
lions were sound If only left alone TO develop on
normal lines. confidence began to be restored We
see now that We overdid for several years. Dun's
weekly review OF the situation hits It exactly when
II saws: "A startling contrast is shown when COM
1arson is made with the corresponding week OF last
wear in trade Prices were then tending upward in
many branches OF industry, new business was coming
forward more rapidly than il had been, and IN the
security market ali records for activity and high
prices were being surpassed Later events have
demonstrated that the situation was unhealthy
and speculative excuses have been followed
by reaction and readjustment Conservatism
was then the exception; it Is now the rule Pros
poets for steady gains and their maintenance are
brighter under the present system Legitimate bust
ness will continue to suffer from speculation and the
high rate for exchange will initiate against indus
trial expansion, but in the long run larger degree
OF caution should prove beneficial
The leading features OF the past week were more
favorable crop Developments less talk OF a coming
scarcity CT money in the regular fall movement to
supply means for moving the crops and visible ex-
pansion in fall trade With the exception OF the
cotton and iron industries the manufacturing lines
report orders sufficient to keep the mills well EN-
ployed. Lower prices have checked the production
of iron and steel and larger crop of cotton than
expected has led to lower prices for this important
product and rendered buyers cautious. Labor strikes
in the wooden industry have lately unsettled that
ket here and in the East, but the latter markets
are quoted firm with demand sufficient to absorb
the output. The footwear factories OF New England
are doing very well, though hides and leather are
weak the latter being kept uncertain by some labor
friction. The West reports a firm lumber market
and the lumber trade of the Pacific Coast is active
with good prospects for continuing Although The
rush season in rairOading has only just commenced
there Is already talk OF scarcity and congesteC
traffic number OF points, and the railway earn
ings show gains OF o3 per cert over 1902 and ia pei
cent over 1901. 1t must be borne in mind, however
that increased wages and cost of material cut dowr
the net earnings considerably from the gross showing
The great markets all report the influx OF larg,
numbers Of buyers, which would not be the cas-
were business at all dull The bank clearings show
2
important cities except New York and Baltimore ex
hib;t gains, running as high as 200 per cent a
Chicago. The aggregate clearngs, curiously enough
stand at about the returns OF week ago. being
SI6so 600 ooo It will be remembered that there wa
a sudden drop in these aggregate clearngs during
the preceding week and they have not yet recovered
though there is further shrinkage. The failure
Tor the week IoI, against last year, an,
were chiefly confined to small financial institution
and manufacturers A good sign was recovery il
the Chicago provision market toward the close O
the week buying being larger and OF better quality
while more confidence in the future OF prices free
ly expressed. The tendency of the provision marke
is one OF the best indicators for trade We have An
other good sign was a sudden urgent demand 70
wheat for milling purposes all the country whic
was so marked that Friday all Western market
were higher than Chicago. The Hungarian Minis
ter Of Agriculture recognized authority on tn
wheat conditions OF the world. estimates that thi
wears crop the world will fall about II per cen
under that OF last year and he also reports that las
wears supply was all eaten up II his conclusion
are correct and there is no reason to doubt them.
good year in wheat IS be expected and this mean
good times for the farmers for another period.
To summarize: Times are still good; we are cor
servative where we were reckless; money is M
strained anywhere the crops are excellent and bring
ing ren1unerative prices; manufactures as rule ar
well employed and labor is receiving high wage.
general merchandise markets report the movement {
goods active and there is no mercantile dsturbanc
either in Europe or the United States. These cor
ditions constitute what is known as good times "