Daily capital journal. (Salem, Oregon) 1903-1919, 1904-07-22

GOOD
NEWS
Bankers and Brokers Will
Not Be Disturbed by
Politics

AA(ANARAh6 oNAShbNa 0AAh GLGAANAAl al
the features of the stock market. TIL,
J most noticeable influences contribut
ing to this improvement were. O
course, good crop reports, easy money
and the certainty that the politica
campaign would develop no disturbing
e issues regardless of the dying gasps
Y Of Organism. Back of these facts
however. is the support given the
market by the big owners of stocks.
OF the latter there is no question.
5 Their holdings have been greatly au
gumented during the recession of the
last few months; and these gentle
/, men, who have the very best facilities
for seeing ahead, have undoubtedly
come to the conclusion that the pres
ent is a good opportunity to put val.
ues back again upon a more normal
level
In this connection is is worth re.
calling that the severe contraction of
1903 forced many stocks below their
Intrinsic values; this having been de-
monstrated by the high rates of inte-
rest which many securities were then
yielding upon their market values. At
the same time, the check to financial
and Industrial activities which occur.
red in 1908, coupled with the enormous
additions to Il gold supplies and our
heavy bank note expansion, left the
money market with an abnormal album.
dance Of idle funds seeking invest.
ment. 1t so happens that a very cor.
siderable portion of these funds has
already been absorbed in temporary
railroad loans which will eventually
be turned into fixed capital. Another
good share of this accumulation has
bee utilized in the taking up of new
municipal and railroad bonds, which
found exceptional favor among con.
servative investors and trust institu.
lions. Yet, in spite of these past de-
upon the money market. there
Is still a great abundance of loanable
funds, and bank reserves have risen
TO unusual proportions; so that bank
ers, in face Of large crop demands,
no concern about the future of I
the money market. Usually this is I
season when preparations for the
crop movement are In progress. and I
IN ordinary times no one calculates
upon a bull movement in the stock S
market until the more imperative de. r
of business and crops are salts. O
led. This year promises to be an
exception in this respect. owing as
lbove stated, to the extraordinary II
plethora of loanable funds. With all :
loubts on this point removed. therel
5 nothing to prevent the market from
e%sponding to better crop. business
nd political conditions, and this fact f.
daily becoming more generally real.
led.
The outlook now is for big corn II
nd cotton crops. These are facts of m
greatest importance. Our corn .,
rop If it reaches $500, O0O, 900 bushels III
hould yield the growers about $1,000. 70
10000 to say nothing of its added val ar
In the shape of pork and beef. Our dc
1tton crop, II it reaches 1000. 900 L.
iles will yield about $500. 900. 900 to NJ
to say nothing of the profits 70
railroads, exporters and manufac. lei
rers; so that from these two crops g,
one The country's wealth will be au.
lmented by more than 1900 million
liars. Other crops are doing fairly -
and there are no important re. II
.rts OF shortage in any direction. OF
urse' damage from drouth now and y
DIST later is possible, even probably.
cotton nearly always deteriorates
August and September. Yet all the 4
Dps have made such good progress I
d attained such strength as to be
lie to withstand unfavorab,e condl |
ms exceptionally well. The only
is In wheat: Kansas Mis-.
li and Nebraska having suffered 3
ury by excessive rains estimated 4
about 25,O0O, 600 bushels. But aIf
100000 crop is expected. which is |
y 81 millions below last e a and'
price, it should be noted. is aboutl4
cents higher than a year ago.
crop prospects are ALREADY ex.
ing a stimulating effect upon busi.l
Is, and distributors in the west andx
IN are looking forward to a salts
tory fan trade Having pursued
exceptionally conservative poliey
ing the past II months, they e"pterl
season In good financial condition
a no heavy stocks OF merchandise
1ed over Even In the East. where 4
FesSlon has been k~eenest, there Is
ione hopeful feeling. This is ps {
able in the iron trade. which has /