The San Francisco call., 1904-06-23
CONDITION OF BUSINESS.
H07U a NeU York FmGncier
Vte1us the Situation.

The New York circular OF Henry Clews says
Though dealings on the Stock Exchange
are limited. the market displays strength
O. undertone that promises well for The futurs'
provided no untoward events intervene during
TIE next Two months. The chief source OF
Strength a. present is a satisfactory monetary
situation. funds being plentiful enough 10
avoid any anxiety concerning crop demands
when they begin. The next reason Tor nope
fulness is the crop outlook which Is sausiac-
tory as 8 whole IN spite Of backwardness- Re
ports Of business reaction are frequent and
are unfortunately confirmed by current reports
OF railroad earnings and other evidences OF
contraction. but Wall street turns com
paratiyely deaf car 10 such arguments. and
replies that all such conditions were discount
co long ago by the shrinksge in security values
and that the time is now ripe Tor anticipating
better things.
''One significant demonstration OF confidence
IS the quick absorption Of recent BOND issues.
These have been numerous and large, but the
promptness with which they have been taken
and their absolute FAILURE 10 oepress the STOCK
market reveal underlying strength that Is
10th surprising and gratifying This week has
witnessed two new big issues-SlO 00O,OVo New
York Central bonds and $40. 0C0, 600 Southern
Pacific preferred per cent stock. The former
was expected but the latter was a surprise,
but neither eXerted any appreciatiVe pressure
on the market. excepting in the Southern Ia
cihc common shares. This shows buying
FINANCIAL CONDITIONS
Though financial conditions have much i'm
proved. the same can narQlE De SalQ OF gen
ersl business and industry, both OF which are
handicapped by high prices and high costs OF
production. The process OF reaGJustment now.
ever is already under way. Pigiron has had
q heavy fall and finished iron products must
soon accept the inevitable. although prices
still held Up by trust influences ana con-
tracts DELAYED in cOnseQ Quence. A great deal
OF work Is also postponed BY the excessive
modified BY the inevitable leveling- down pro
cess which has already set In Cotton ana
cotton goods are also declining, ana thus
upon a sounder basis than heretofore Ihls
process Of readJustment painful as II Is, must
be faced, and the less IL Is resisted the better
for all Costs OF production are altosetner 700
high and the cost Of living cannot be reduced
until these come down from the e1cesslNeIy
high level OF the past Few years. As soon a
those who take the initiative ma values set
tied upon q more normal basis business i'm
provemeut VIII succeed present depression.
Good crops this fall viii be the most important
factor IL any improvement crop IalLures
would De national disasters not only as affect
ing our foreign trade and our agriculture as
the chief basis OF prosperity, Dut also De
cause Of the effect upon prices OF tood prod
ucts. which are already very high Tor the rea-
son that demand is overtaking supply. Hence,
our particular needs this year is good crops.
OUR FOREIGN TRADE
a rather unsatisfactory feature Of our for
eign trade movement was q decrease Of SIS. =
COO 0O0 IN May exports. due % q shrinkage OF
s.. 600. 600 IN wheat s3.O00OoO IN cotton ana
s. 10000 in corn Our exports Of naanufac-
rures and minerals are, however, increasing
and N the present downward tendency OF COM
modify prices continues the shrinkage in ex-
ports will BE- only a temporary anair.
our credit abroad continues good, and gold
sniprnents appear 10 have ceased for the pres
ent Europe having satisfied its immediate
wants. What effect the war VIII nave upon
The gold movement remains 70 be seen this
and the increasing supply Of lOanable FUNDS
being the chief inducements 70 gold shipments.
Verv soon future cotton and grain bills will
b. IN better supply. sufficient. possibly, TO on
SCI these Influences. Little attention is paid
10 the Presidential campaign. which contains
no exciting or alarming issues and no question
concerning the soundness Of our currency
The outlook for the market may be con-
sdered more favorable. Bad features have
beer amply discounted, stocks are concentrated
IN strong hands and money Is plentiful These
are conditions favorable 10 manipulation should
fhe big leaders so agree and in the absence
- such plans we may look for fair trading
r77arj<et subject 10 the influence At all times
OF crop reports.