The San Francisco call., 1904-09-11
GENERAL BUSINESS.
Current Conditions Excellent and
the Outlook Bright.

The New York circular OF Henry Clews says:
Railroad managers are taking on a dis
unctly more optimistic spirit the result OF
course OF q good harvest. Current gross earn
irEs show smaller losses than the FIRST half Of
The year. and during the next three months
tafne returns are likely 70 more nearly ap-
Rfodcn the record breaking figures Of 1908.
luite number o1 the larger railroads report
important gains in net earrines oV-inr 10 he
economies which have been uut into force
Many OF the heavy expenditures OF the last
Iose of reducing the expense ratio and net
earnings should now show the benefits OF
the special OUTLAWS which such improvements
necessi.sted- American railroads as a rule
were neysr 50 well equipped for handling a
large Uafhc with economy as they are 70 day:
gsncrally speaking. they are in the soundest
financial and physical condition IN their his
Investments. especially n traffic Increases as
seems more than probable
Business conditions seem fairly satisfactory
the outlook being for a good average volume
~ business this autumn but no boom One
a. the greatest hindrances 10 business activity
another obstacle the unsettled condition Of the
labor market There are indications of a
cnsnge Tor the better IN both these respects,
Cotton and wheat have descended from their
recent nigh speculative level: and what is
especially Important, iron and steel prices are
eetlllus Gown 10 normal and more stable levels
Prices of iron and steel have been too long
held az almost prohibitive figures by the
various Pools and the trust Al last these
are giving way. owing 70 absence OF business
old prices and healthier conditions are IN
prospect Iron and steel enter 50 extensively
into all sorts OF enterprises that the return
of this Industry 20 the normal Is sure 70 ex-
ercisc a stimulating effect in other directions,
ana ere long reduced prices should be followed
b ar accumulation OF orders held back for
just such cOutugeucioss hence probably the
advance IN United States Steel securities when
J. ICES of products are being marked sharply
down
TIE MONEY MARKET.
The war between. capital and labor may
rot Yet be ended: but the crisis seems 70 have
been passed and Important lessons have been
learned on both sides. which should at least
serve 70 diminish friction and trouble IN the
future- The Presidential campaign strange
70 say. IS scarcely . factor IN the situation.
NQf since the war has the election OF a Presi-
dent created SO little excitement; mainly be-
cause - The absence 81 disturbing issues Even
the ta-in. the principal subject OF controversy.
81 not likely 70 undergo any serious change 1pr
some time 70 come
The money market remains easy in spite OF
more liberal currency shipments. The latter
viii probably increase in force and cause a
steady Ciuinution ~ surplus reserves this
point; but there are more than sufficient funds
n sight 70 meet all probable requirements.
There hss been some fear of g0ld exports ow-
Ing tp lzell HOOD Of small wheat exports,
though good supply of cotton. bills viii be
shortly fort aeon ing. and fae big corn crop
will undoubtedly Ie followed by larger exports
OF that article. either IN the grain or in the
form or meat products. Reduced imports OF
VIII also tend 20 discourage gold shipments.
Reports of a big Russian loan may possibly az
feet the International exchanges. but this is
rrer1ature