The San Francisco call., 1904-07-22
4 CHEERFUL VIEW.
Wal Street Considers the Outlook
Very ASgyfHg.
The New York circular OF Henry Clews say

The New York circular a. Henry C1ews says:
Increasing strength and activity are the
features % The stock market The most
noticeable Influences contributing 70 this i'm
prcveneut were of course. good crop reports
easy money and the certainty that the political
c1upaign would develop no disturbing issues
Back % these facts. however. is the support
gwen tre market by the big owners OF stocks
o. -he letter there is 20 question They
holdings nave been greatly augmented during
ELe recession of the last rev months: and
these gentlemen, who have the very best
facilities f1r seeing ahead. have undoubtedly
nae t1 -Le conclusion that the present is
good opportunity 20 put values back again
SIln u--re normal level.
MONEY AND STOCKS.
IN rEls connection u is worth recalling that
the severe contraction ot 1908 forced many
stocks below their intrinsic values; this having
been demonstrated by The high rates Of interest
which many securities were then yielding upon
Iheir market values. Al the same time the
check % financial and industrial activities
which occurred in 1908, coupled with the
enormous a51it-1-s 10 our gold supplies and
Cur heavy bank note expansion, lett the money
market with an abnormal abundance Of idle
FUNDS seeking Investment i 50 happens that
& Very considerable portion OF these funds
has already been absorbed in temporary rail-
road loans. which VIII eventually BE- turned
intl fixed capital. Another good share Of this
accur-Lllllcn has been utilized in the taking
Up o. new municipal and railroad bonds,
which -ouud EXCEPTIONAL favor among con
EerEarlye investors and trust institutions. Yet.
in spite Ct these past demands upon the
Cf loal8ble funds. and hank reserves have
-iseu 10 unusual proportions, SO that bankers,
i- tace of large crop demands. show no con-
60 &l--- ll- --l-re c- lne money market
Usually this is the season when preparations
Ger the crop movement are in progress, and
= orclnafy t-Iles 10 one calculates upon a
blll movement in the stock market until the
more imperative demands Of business and
crops are satisfied. This year promises % be
a. exception IN this respect owing. as above
80 -,--5 WI sfI 5C5I3e - MS r9irf re
-f~rs- rFr L1r
tron responding 70 better crop. business and
p---tical ccn1ltlors, ana ms facL IS oally be
coming more generally realized.
TIE CROP OUTLOOK
The outlook now Is FOR big corn and cot
ron CROPS -1ese are iacts q The greatest
lportarce- our corn crop II i reaches
$50. .nDt. coo bushels. should Weld the grow
ers about 81. Oe0. e9.G00. 10 say nothing OF its
ADDED value In The shape OF pork and beef
Hil yieid about S400000eO0 10 growers 70
say nothing n the profits 70 railroads. eX-
pprterE ana manufacturers; 50 that from these
lNo crops alone l1e country wealth VIII be
augmented by more than 81 500. co0. 600. Other
cfcps are dong fairly well and there are no
1rrorrart reports ~ shortage in any direc-
ZION Or course. damage from drought now
and frost lsrer is possible, even probable, for
cotton nearly always deteriorates in August
ard September. Yet an the crops have made
such good progress and attained such strength
es 70 be able 10 Withstand uufaVorabe con-
citons exceptionally we'll The only eXcep-
tlon Is II wheat kansas. Missouri and Ne
braska having suffered injury by excessive
bur q g--o0Q 600 bushel crop is expected.
which is only 100000 bushels below last
3ser, and The price. il should be noted, is
about - cents higher than q year ago
THE BUSINESS PROSPECT.
Good crop Prospects are already sxe-ting
eliminating eject upon business. and distrfb-
Ltors d. the West and South are looking for
T'1rd 70 satisfactory fall trade Having
blfsue1 a. e1celJ-iorslly conserve tive policy
curing TIE past twelve months they enter
tle season in good financial condition with no
heavy stocks ~ merchandise carried over
Len in the East. where depression has been
Eee1eFt, there is more hopeful feeling This
D. most noticeable II the iron trade which
Ia Just emerged from six months OF stringent
c-Ifaiiue1t En- al sorts OF iron ard steel pro
cucts As result producers now show more
connlence, and the feeling grows that prices
nave nnaiiy touched rock bottom. As soon
g. this ract becomes recognized among con
ElnerE orders that have been long held back
RIl come ln and recovery must become more
apparent than II row IS There IS already
feeling that e turn for the better has taken
place -n the iron trade and The Indications
ere that this feeling viii extend Raflr,a8
eer-llnes ana bank clearings are also making
more Satisfactory records inas1uch as they
SHOW feHer declines and more gains than dur
ine the hrst six months of the current year.