The San Francisco call., 1904-07-05
FAVORABLE CONDITIONS CONTINUE


any intrinsic sluggshness, for the more fayora-
BILE conditions observed during the past fortnight still
continue. Indeed the signs the best for
months, and the impression that we to have
improved conditions during the last half of the year is
steadily increasing 1t is that the counrys bank
cearngs last week showed loss of 2o8 per cent as
compared with the orrespondng week i'll with all
but OF the important ctiesS Louis and Cincinnati
ON the wrong side of the exhibit, but the week was
broken by the holidays and the figures for hol
day are apt to be misleading, least the sur
face
The failures for the week 244, against 2I5 for the
week in 1908 The railway earnings which during
the first half OF the year steadily behind those for
the preceding year. have lately taken foi the bet
already mentioned, during the June
exhibited increase of about 3 per cent, which is
marked improvement the to per cent loss Of
the spring months The failures, will be seen
numerous than during the corresponding period in 1908
but the liabilities have steadily decreased showing that
the failures rule small
In financial circles at New York the feeling of conf
dence the future often of late as pro-
nounced 1t is felt by professionals than
the public however for the latter still indisposed to
purchase standard divdend-payng stocks except
in small and tentative way. Perhaps they haze
recovered from The enormous losses of 1908 and the
early OF attendant upon the great liquidation i'll
railroad and industrial shares for passes and the
facts slowly leak with increasing cfearness
that the public losses from the famous shrinkage
enormous.
There thousands of persons in the United States
whose stocks declined anywhere from IS Is per
during that long, slow shrnkage, and large indeed
be the bank account that stand such drain and
leave its possessor solvent. Many fortunes swept
away altogether and everybody, professional or out
sder who had money invested in Wall street lost I'm
der such circumstances time necessarily
elapse sufficient recuperaton is gained for further
investment and then the purchase OF securities will
be slow and cautious This probably the reason why
Wall street stocks while showing buoyant underone
do advance, though everybody says they ought to-
and is surprised that they do not
Similar conditions prevail in Europe. A New York
banker lately returned from abroad says:
Money is very plentiful in Europe, and rates are &C
cordngy low The situation there is very much the
here There is very noticeable tendency
among foreign investors choose short-term securities
in preference to the standard long-term investments
Among the leading English bankers there more op-
tmism on American securities than there is among
own bankers Go not think, though that they look
ing for immediate rise in market values"
The crop prospects upon which, already stated the
condition OF trade largely depends this year.
brilliant they week days ago but they
still excellent and plenty of wheat cotton
IS assured In Europe the wheat crop has suffered some
deterioration owing bad weather, but the worlds sup
The provision market is in rather better condition
age n the ~ecent liquidation has about ceased Stocks
still liberal at the leading packing ceners but there
IS no congestion There is nothing worthy of note
IN the textile industries, except that nothing more is
heard Cf growing depression in these lines and there
no closing down Of mills and factories though
some here and there occasionally working shorter
hours. ihe railroads making staff reduc-
tons assar reported end those made weeks ago
turn out to have been considerably exaggerated Aside
rom the reduction the wage scale of the iron workers
at the beginning of the year and which was then sup
posed to be the beginning of general scaling down of
wages all over the country there have been few wage
reductions affecting large bodies of men, and labor seems
to be well employed throughout the country
The condition of trade San Francisco pretty we'll
illustrated by the local bank clearings which in June
we're $r25o5cS7 against $I74o4342 in Jane 1908 For
the first SIX months Of the year they $72742I 45
against 7654o53 for the time in 1903 The back
hgures show that while still behind 1903 in these
local clearing regained lost ground in June for
on June about $ISoooooo behind Ioo3 where
as, are only about $Iooooooo behind This ap
parently indicates gain local trade in June for
the cearngs in May were SIIo2o9 2o6 about SO ooo
900 below thpse for the month of june
This exhibit is confrmatory of the preceding state
ment that during the past several weeks business has
taken turn for the better. As the Improvement comes
during one Of the two dull periods of the year it doubv
rcassuring and presages very good fall trade Prices
too are keeping in spite OF the depressing tendency
OF all the recent talk about recession" dull times etc
and nobody seems to be worrying about the future
As far as current indications 60 therefore the outlook
for continued good times the United States is excellent
and much better than during the first half of the year
A TEXAN NOVELTY.
- ie andb hoe H.