The San Francisco call., 1904-04-21
STATE OF BUSINESS.
H010 the Country Looks From
Headquarters.

The New York circular of Henry Clews thus
states the current condition Of trade:
The developments which serve 10 check un-
Que enthusiasm on The bull side Of the market
are the poor Government report on winter
wheat the less satisfactory reports of railroad
earnings, the large decline in March exports,
the decline in Clearing house returns and the
fall OF nearly $5.0o0.OO0 IN surplus reserves
some Of these influences receive more atten-
tion than they deserve. some do not. Il is
altogether TOO early 20 form any opinion about
the wheat crop which now is probably in
better condition than al the time Of the Gov
ernment statement. Yet that had a decidedly
discoursging effect upon speculation. and from
importance IN the market As 20 railroad earn
fngs some disappointment must be confessed.
for after the losses from severe weather m
January and February IL was hoped March
would show general Improvement which
was not the case, a majority Of the roads re-
porting decreases last month or course tra1hc
was interrupted by bad roads over large sec
tiOns OF the country. 50 that April may make
better exhibit and II not the returns viii
have 70 be accepted part Of the business
reaction that Wall street has been anticipa-
ting March clearings in the United States.
it may be mentioned showed a reduction OF
y per cent compared with last year. the whole
of which practically occurred IN the Middle ana
and Pacific Coast States continuing TO report
satisfsctory gains. The losses in the East,
however are more attributable TO the shrink
age OF speculation than 20 the decline Of legiti-
mate business II is not likely that business
IN general has fallen of more than per
cent IN the East. insignificant decline con-
siderfng the Immense volume OF last years
trade. The larger share Of ths could be
traced 20 labor agitation and iron trade re-
action while the effect OF the war in Asia
and the Presidential election here somewhat
checks enterprise.
THE EXPORT TRADE
The most unsatisfactory feature ia the pres
ent situation is our loss Of export trade In
March there was a reduction Of about S2S,
900 600 in exports compared with year ago,
more than one-half OF which in cotton
end the remainder in wheat Scarcity and ex
ceEsive speculation in these staples especially
in cotton Were chiefly responsible FOR this un-
welcome change IN the drift of obr foreign
disc showed .oss of over $1,000 coo. which
somewhat corroborates the reports OF lessened
trade activity. II these tendencies continue
they are likely 70 stimulate gold exports 10
greater degree than anticipated. In fact the
conditions more In favor of gold ship
ments than for several years past al this sea-
son. Easy money. larger surplus reserves than
for some years and the prospects Of Europe
selling American stocks IN case Of a Russian
or Japanese loan all work In favor Of gold
exports, particularly when our merchandise ex-
ports However. this need cause no concern.
for we usually ship gold freely az this season
and the country now holds over 81 .30e 600 600
gold money which Is almost double that held
only seven years ago. IL Is plain we car
spare gold freely without any anxiety.
A feature in the money market is the con
tinUed heavy corporation borrowing. explained
BY the fact that these concerns need money for
enlargements. etc. and hnd this means Of
obtaining funds better than an issue Of securi-
ties In so limited a bond market as al present
81 OBS O00 O00: so that the positive absence OF
concern by bankers who know they well
serve Glands at the comfortable figures OF
over $50. 0O0. 600 which IL much greater than
Tor = number ~ years a. this time.
The market wears a somewhat reactionary
appearance and operations for tho rise should
be MADE with caution until the downward ten
dency Is less pronounced.