The San Francisco call., 1904-06-09
MONEY HND CROPS.
The Latter VIII Govern Business
This Year.

Henry C1evs saws fn his New York circular:
f'Ciol6 exports have been renewed upon q MOD
crate scale the scarcity Of commercial ollls
causing a fresh advance in sterling. Had bars
been available more gold would have gone,
bun coin is the only form IN which gold can
now be exported and this Is less profitable.
Additional arrivals from Japan fsciiitaiea ne
outward movement and The lro1aDi.lls y ll,at
further shipments VIII be maQe curing tne
u0Kt feH weeks Al present. however mere
is occasion for anxiety regarllns me AoI
eier demands uDon our goc supply, which IS
annie and r-tI soon be replenisnec uE arrivals
from the Klondike 10 say nothing OF our own
production and further imports from Japan.
Foreign requirements. moreover. VIII soon De
satisfied. So that the prospect OF any lurlher
cfallv as future cotton and grain bills VIII
soon De available. The most unsatlsfa ctory
feature in the money market as anectlng me
Eoll rofefneit Is tee iel-l-allls on 80 o
note currency. which is a very potent influence
iu stimulating gold shipments our bank note
currency has already been eNpanoea anoul
$500 0oO 600 during the last seven years ana N
rhe last twelve months the new circulation
taken out was nearly $50 GOO o00-at time
when money was already abundant Inis Is
eNuIsinei by The present price OF Government
bonds admitting Of circulation being put out
other words an elastic currency system. the
supply would CONTRACT when redundant and
expand when scarce As u ls, We a. g'llse @ =
IN WrleEle along under a system "h.ch cOn-
Erarrlv threatens embarrassment ana Works
fn defiance OF an sound and natural innuences.
In this connection IL Is worthy or note tllat
Government receipts are decreasing and eN-
rerses increas ne. 50 that this year we are
facing 4 Treasury deficit. Naval expenditures
and pensions are chiefly responsible for IN
creased expenses. the Panama payment being
e special item. while receipts have been d.
Tninshed 10y a falling OF in customs Were
st NOT that we now possess handsome sur
plus We might be- threatened with a repetition
a the experiences n 1898.
INFLUENCE OF THE CROPS.
Zone favorable feature IS the increase IN
eNrorre ~ rnanufacrur from the United
States. our manufa ctured iron exports during
the last ten months amounting 10 So, ooo, 600
or nearly $1,000 GOO more than during the
same time last year This demonstrates that
recuneratiVe influences are al work which vii
ia due season prepare the way for a fresh re-
CoEcry- The decline of cotton 10 more normal
level fe also a reassur1ng feature crop pros
recfs thus FAR have been favorable as whole
wheat condition is improving. corn planting Is
making favorable progress. and cotton. Whlch
shows record breaking acreage, has made
better start than last year This year unusual
reliance viii be placed upon the crops. Tor
rHav more than any other factor VIII govern
~ ~ industry and finance of the country for
Balance OF this year. The elections are
naturally influence Of some uncertainty
hut less So than is usually the case during
Presidential years. The tariff appears 10 be
the only disturbing issue and Indications are
thar talk on that subject VIII be vastly moro
firresteniug than action All probabilities point
10 = quiet campaign In financial circles there
S. "a confident undertone owing 20 belef that
,f0uilatiun has run its course asd that prices
81 GOOD securities are ready 70 respond 10 good
Influences as soon as these appear with any
real force. hut the big leaders seem disposed
r. uait until it is seen what the next two
o. three months viii bring forth.