The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-09
BUSINESS OUTLOOK.

4
Nothing so optimistic regarding the
4 future of business. has appeared in a
/ long while as the latest issue of Henry
Clews & Co.'S Financial Review. OF
the situation in Wall street it says:
The stock market exhibits a strong
and cheerful undertone in spite of alb
Senteeism. and unfavorable reports
concerning the wheat crop, which in
duced more or less realizing in the
early part of the week The hopeful
feeling now so prevalent in the street
is due to the changed position of lead
ing bankers and financiers, who have
abandoned the excessively conservative
attitude which they held for the last
year or two and assumed one of re-
newed confidence in the future. The
reasons for this change of attitude are
plain. They are ID the prospect of an
other profitable harvest, ~ the inn
provement in the iron trade, 90 the
practical certainty of easy money and
(4) the absence of any disturbing issue
in the presidential election With such
an array OF influences on the side of
Improvement, and with securities con-
centrated in strong hands, it is not
likely that the big leaders will lose such
an opportunity of putting the market
upon higher level.
Referring TO the crop situation in de-
tail the Review says farther:
As for the crops. cotton is easily the
ter of the last government report indi-
Gates a yield of not less than 10000 600
bales. While cotton has shown a big
decline, the price is still high enough
to give the grower a good profit; and
the lower cost will come in as a boon
to the manufacturer, who has been
grievously hampered by high cotton.
high wages, competition between north
ern and southern mills, loss of export
trade and legislative and union re-
strictions. Cheaper cotton will do much
towards restoring prosperity in the
cotton goods trade. Next to cotton, the
corn crop is the most important ele-
ment; in fact it's value is considerably
greater than the cotton crop, and in
the form of hogs, cattle, etc, 1t is by
far the chief of our agricultural prod
enormous amount of freight This crop
is somewhat backward and exposed to
danger from frost. but experts are ng-
uring upon a maximum crop of about
2,500, 600, 900 bushels. 1t is unfortunate
that the wheat crop is now likely to
fall below 500, DOC. 900 bushels; but the
damage stories appear to have been
exaggerated and price being high farm
ers will not suffer much on this score
Another important crop, which is Of
ten lost sight of, is the hay crop; and
this too promises to be abundant,
tina nks to plentiful rainfall. The crop
situation therefore as a whole is en-
tirely satisfactory and each day dimin-
ishes the risk of injury
Another important feature in the
roseate outlook is the condition of the
iron market. OF this it is said:
The improvement in the iron trade is
more than talk. Orders have recently
been placed for over 10000 tons of pig
iron, which shows that trade leaders. |
who are in best opinion to judge, be- |
lieve the turn for the better has come |
The iron trade is as good barometer
under the new conditions as under the
old, and the way in which orders are |
coming in and furnaces starting is in |
evidence that it is business |
and not sentiment that is moving the |
iron trade. Some plants have more or |
ders on their books than at any time
this year; the turn naturally bringing |
in a lot of buyers who held back for |
that event.
Regarding general business and the
money situation the Review says:
In the dry goods trade there are also /
very promising signs of improvement.
Buyers are taking hold with more con-
hdence on the discovery that supplies
are scant and prices of finished goods |
are more firmly held in spite or the |
decline in cotton. General business is |
almost everywhere reported in a salts
factory condition, except where temper
arily disturbed by strikes. In brief, |
the expectations of a good fall trade
are almost universal, north, south, east
and west alike.
AS stated in previous advices there is
no neeQ OF concern ABOUT the monetary
situation. Our local banks carry a big |
surplus reserve of about $50. 000, 900.
which is the largest in many years at
this period. The west and south are
also amply supplied with funds, and the |
crop and business demands are not like
ly to cause any embarrassment in the
money markets On August LIST the
stock of money in circulation in the
United States was 81. $40, DOC. 900, a net |
increase of S164, GOO, 900 in the last IL
OF this increase "a millions
was in gold coin; ia millions in gold
certificates and 81 millions in national
bank notes. During the last seven
years we have added about $50 millions
to our stock of gold and about 200 mill
lions or more to our supply of bank
notes, raising the per capita circulation
In that period from $2S to $S1. Such an
enormous increase in our currency sup
ply, out of all proportion to growth of
lis sure. If maintained, to
have a stimulating effect upon values,
especially when the latter are upon n
lower plane than formerly, as is now
the case. Initiation may be undesirable,
but it is just as certain under favoring
conditions as is a fall in values from