Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1904-06-21
GOOD CROP NEEDED
HENRY cLEWs SAYS THEIR FAIL.
uRE WOULD BE A NATIONAL
CALAMITY.
Though Stock Exchange Deals Are
Limited, Indications Are That the
Market VIII See Big Improvement
Within the Next Few Months.

Within the Next Few Months.
[BY HENRY CLEWs.1
New York, June 20. - Though deal
ings on the stock exchange ale limit
ed, the market displays strength of
undertone that promises well for the
future, provided no untoward events
intervene during the next two months.
The chief source Of strength at pres
ent is satisfactory monetary situa-
ton. funds being plentiful enough to-
avoid any anxiety concerning crop de-
mands when they begin. The next
reason for hopefulness is the crop out
look, which is satisfactory as a whole
in spite Of backwardness. Reports OF
business reaction are frequent and are
unfortunately confirmed by current re-
ports of railroad earnings and other
evidences Of contraction; but Wall
street turns a comparatively deaf ear
to such arguments and replies that all
such conditions were discounted long
ago by the shrinkage in security val
ues and that the time is now ripe for
anticipating better things.
confidence is the quick absorption of
! recent bond issues. These have been
numerous and large. but the prompt
ness with which they have been taken
and their absolute failure to depress
| the stock market reveal an underlying
| strength that is both surprising and
! gratifying. Last week witnessed
! two new big issues = S10,000,000 New
York Central bonds and $40,000,000
| Southern Pacific preferred Z per cent
stock. The former was expected but
the latter was surprise, but neither
exerted any appreciative pressure on
the market, excepting in the Southern
/ Pacific common shares. This shows a
buying power in reserve that was quite
| unexpected.
Iron Prices Are Falling.
] Though financial conditions have
much improved, the same can hardly
4 be said of general business and indus
] try, both Of which are handicapped by
! high prices and high costs of prSduc-
ton. The process OF readjustment,
however is already under way. Fig
I iron has had heavy fall and finished
4
evitable, although prices are still held
up by trust influences and contracts
j delayed in consequence. A great deal
of work is also postponed by the ex-
cessive demands of labor; but these,
too must be modified by the inevitable
leveing down process which has al;
ready set in. Cotton and cotton
goods are also declining, and
thus facilitating the re-establishment
of the industry upon sound
er basis than heretofore. This
process of readjustment, painful as it
is, must be faced, and the less it is
resisted the better for ALL Costs of
production are altogether too high, and
the cost of living cannot be reduced
until these come down from the ex-
cessively high level Of the past few
years. AS soon as those who take the
initiative find values settled upon a
more normal basis business improve
ment will succeed present depression.
Good crops this fall will be the most
important factor in any improvement.
Crop failures would be national dis
asters, not only as affecting our for
eign trade and our agriculture as the
, chief basis of our prosperity, but also
because Of the effect upon prices of
: food products, which are already very
high for the reason that demand is
overtaking supply. Hence, our partic.
ular need this year is good crops.
: shrinkage in Exports.
A rather unsatisfactory feature OF
our foreign trade movement was a
decrease of $15,000,OO0 in May ex
, !, ports, due to shrinkage of $S,00000C
!, in wheat, 100000 in cotton and 81,
, 100000 in corn. Our exports of manu-
, facturers and minerals are, however
increasing. and if the present down
ward tendency of commodity prices
continues the shrinlage in exports vii
be only temporary affair.
n Our credit abroad continues good
|, and gold shipments appear to have
ceased for the present, Europe having
+ satisfied it's immediate wants. VIVA
effect the war will have upon the golt
movement remains to be seen, this
+ and the increasing supply of loanablt
t funds being the chief inducements tt
gold shipments. Very soon future cot
: ton and grain bills will be in bettel
supply sufficient, possibly, to offse
: these influences. Little attention i:
n paid to the presidential campaign
6 which contains no exciting or alarming
. issues and no question concerning thu
soundness of our currency.
: The outlook for the market may b.
:. considered more favorable. Bad fea
a lures have been amply discounted
stocks are concentrated in strons
= hands and money is plentiful Thes
). are conditions favorable to manipula
4 ton should the big leaders so agree
r and in the absence of such plans W.
S may lok for fair trading market
: subject to the influence at all times o
d crop reports.
!