The San Francisco call., 1904-06-27
BUSINESS CONDITIONS BRIGHTER.

was even more pronounced last week and it really
L app peared if business improving. If a COM
mercial reaction should in it would be rather
surprising for such reactions rarely in midsum-
mer, though it may prove huctuaton But the
signs all along the line better. First the loss IN
bank cearings which has lately ranged from IS TO rs
per cent has fallen to 40 cent Tor the week just
passed. and the aggregate clearngs were
The failures, too made favorable exhibit, being
227, against 223 for the corresponding week in 1908
Another cheering indication increase IN railway
earnings the record thus far June showing actual
gain of AZ per cent last year. For some months
past these railway earnings steadily exhibited de
crease compared with 1908
Thus, as far the usual figures by which the con-
dton of the of the country is estimated and
which may be called the pulse of trade concerned
the business situation is showing only but
activity than for months There is no ques-
ton that the feeling in New York is decidedly bulsh,
especially among the great banking interests and the
leading Wall street operators. The stock market for
the past fortnight acting like captive balloon
which sways in a buoyant and tugs at its ropes IN
persistent attempt away from the earth and seek
the skies From all quarters in Wall street come multi
plying reports OF increasing confidence desire to in
standard bonds and general disposition to take
"a sangune view of the trade outlook
In this connection the Wall Street Journal says The
bond market has practically cleared of bonds in
City and portion of the Lake Shore debenture
issue The demand present is showing indications OF
passing into bonds of slightly lower grade Bond
houses say that if they could get absolutely hrsclass
material they could do large business There is no
sign however, of any fresh material at this moment,
and it thought likely that there will be any new
bond issues for quite while. The Head of one large
banking says that in years has there been so
good demand for frst-class bonds there is now.
There has been great restoration of confidence the
part of investors in this class of security.
The general view of the business situation far as
the city OF New York is concerned is this: That with
money in oversuppy at anywhere from to per cent
pressing the market for advantageous outlet
with plenty of standard stocks paying from to per
cent going begging for purchasers and crop conditions
which are practically perfect, will be impossible to
keep the stock market down for any extended period
These conditions will surely force the apathy to give
way Money going to lie idle forever when it can
be borrowed say az per cent and put into invest
paying 41a to per cent Such situation would
be absurd its face And when that money breaks
loose from tmid cusodians who holding back
and energies into the active and buoyant
force there will be market and good one.
1t is noteworthy how many hnancers veterans
in Wall street. take this view and will be interesting
watch the OF the market for few weeks and
see how far this sanguine forecast will be verified 1t
may be that the wish is father the thought but be
this as it may the feeling in the countrys metropolis is
undeniably much better than for months, and further
more is getting better right along
There are other favorable signs which have cropped
out within the past month. Provisions much more
active the important Western and prices have
lately been decidedly firm Many cities, large and small
are reporting jobbing demand for general
candise larger distribution of staple goods This
improved demand, coming in midsummer, is very en-
couragng though, of nobody knows how long
will last.
Just what causes this general better feeling all along
the line of trade is not known 1t may be- said be-
fore mere huctuation, be followed later by
other recession and period of dullness transient
activity due to the repenshng of depleted stocks to
the simplicity and clearness of the political outlook
which is something unusual and decidedly refreshing in
Presidential year. 1t may be the brilliant crop pros
pects which almost insure least fair times for the
American farmer for another year; it may be the belief
which is becoming crystaized that there will be no
serious disturbance by the coming election of the cur
rent settled conditions of finance and trade for in
definite period ahead; it may be that less idle
money is already forcing itself into active circulation
Any or all of these conditions may be the of the
current improvement.
Still there drawbacks The lumber trade is de-
pressed all the country a rule. The iron and
steel trade too dull and unsatisfactory though dis
patch from Wall street Saturday said that an i'm
provement slowly extending in the industry and
that better feeling would also appear in the dry
goods markets. Hides and leather losing the
activity which has heretofore characterized them and
the taking hides than they help
The wheat exports much less than those last year
week being only I27Iooo bushels against
58ooo for the corresponding week in Ioo3 while from
July /, 1903, to date they amount to only I3a727ooo
bushels against last and 2444ooo in
ooz Partially osetting this oss however is the state
ment that the United States is falling back as great
wheat exporter, needs of its wheat than for
mery to feed its rapidly increasing population