The San Francisco call., 1904-08-15
TRADE HERE AND ELSEWHERE.

aggregate clearings to about $I67ooooooo, the low
figures touched for several years. commercial
ports last week reported slow expansion in trade in
most sections with the tone of the advices of decidedly
cheerful sanguine The conditions do
harmonize If really expansion in trade the
bank cearngs ought show it by an increase while
any marked decrease in the cearngs indicates cor
responding falling off in the volume of business.
There are two conditions, however which may explain
the apparent contradiction One IS while business
may really be expanding. the lower prices for many
commodities may diminish the clearings sufficiently to
offset the expansion when the net showing is made
Another is dull speculative market in Wall street,
which in itself would the volume of ceangs
materially. Perhaps both of these factors prevail
Briefly, the actual volume of trade be expanding,
while the lower plane of quotations for important
lines of merchandise may reduce the amount of money
necessary carry the trade; and this connection
with a dull stock market would naturally reduce the
aggregate clearings But this OF conjecture
But aside from these theories and distractions is
fact that the reports now coming in from different
parts OF the country continue to improve week after
week The jobbing trade is not equal to last years
and the industrial conditions could be promising,
but aside from the damage to the wheat crop. which,
as far as ascertanable at present. about 10
rer cent, reducing the crop from previously estimated
yield of 625oooooo bushels somewhere about 565ooo
rough calculation, the crop prospects of the
country are very fine prominent Western bank last
week out inquiries TO 1912 banks in many dis
tricts in Alabama. Arkansas Illinois, Indian Territory,
Iowa, Kansas Kentucky. Louisiana, Michigan, Okla
homa, South Dakota. Tennessee and Texas and through
the Middle West. which brought of crops
retarded by cool nights and unfavorablc weather but
that spite of this all crops except wheat showed
increase last year AS the crop prospects the
overshadowing and ruling factor in trade this year.
probably this which gives to the current commercial
situation its Frightening aspect.
These excellent crop prospects the very time
when they needed, for business beginning
anguish Now. the duest tradesman that
with abundant crops and active demand for them at
prices above the normal business cannot become very
dull. With 100000 bale cotton crop, ooo-
bushel crop, 565oooooo-bushel wheat crop and
very large yield of hay. which is of the largest
of possessed by the country the farm
ing districts will be alive with activity the mills be kept
running the railroads have all the freight they han
die, the banks mutarious channels for the profitable
placement of their funds the merchants increased
for goods and the manufacturers easy outlets for their
products. All this is but another for trade activity
and continued prosperity boom, perhaps, but a
good, steady normal trade movement, beneficial the
capitalist and wage-earner the merchant farmer
the transportation lines which furnish employment
great armies of
Such is the situation to-day True, lines are
dragging the country report busi-
quiet, but the country whole is in excellent
condition. Provisions dull and the packing house
strike in the West is cutting down the volume of trade
in that region predicted lower prices for cotton
derng buyers cautious about laying in supplies, but
signs of improvement in the dry goods trade, and
late advces from New York emphatcal1y say that the
improvement in the iron trade limited at lately is more
than talk Orders for 10000 of pgiron
have lately been placed. which indicates increasing
movement in this line The wool industry is in excellent
condition prices for wool being excellent and the
demand for the clip large and lively.
AS for the question ready cash for the conduct of
b,,cio VO-l
oughly posted trade conditions says There
is need of about the monetary situation Our
local banks carry big surplus reserve of about
$6o,oooooo which is the largest in many years at this
period. The West and South also amply supplied
with funds and the crop and business demands are not
likely to any embarrassment in the money mar
kets. On August the stock of money in circulation in
the United States $2,s46oooooo net increase of
I64 in the last twelve months Of this increase
$24oooooo in gold coin, $IIoooooo in gold certh-
and $3I,oooooo in national bank notes. During
the last years have added about $6ooooooo 70
stock of gold and about $500 or more to our
supply of bank notes. raising the per capita circulation
in that period from $23 $3I Such an enormous in
crease in currency supply of all proportion to
growth of requirements is sure, maintained to have
stimulating effect upon values, especially when the
latter upon lower plane than formerly as is now
the case"
In local markets the feature last week was tb.
sudden queting down in general business 1t was gen.
eral and seemed to begin abruptly in one day There
general complaint of slack demand for all sorts
of merchandise heretofore active Nobody seemed to
know what caused the sudden quieude but everybody
remarked it 1t particularly noticeable in some of the
products of the farm though manufactured goods were
also affected. Lower prices resulted in number of