The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-12-23
CLEWS & CO.'S LETTER.

S1LA%sS {" w.. . LIE En- 1
The current letter of Henry Clews &
Co, reviewing the present financial and
commercial conditions and the prospects
for the near future is very encouraging, |
in fact, quite optimistic, without being
at all sensational. At the same time it
sounds a note of warning, declaring
that amidst all the prosperous condi-
tons there is the danger of congesting
the money market and depressing the
stock market if the supply of new issues
Of securities 3utruns the ability to alb
sorb them.
Among the favorable conditions ex-
listing are: An abundance of money
excellent Investment demand; heavy
growth of railroad traffic; good foreign
Trade. with abundance of agricultural
products, except wheat, to export; gen.
eral business promising, and the iron
and steel trade on an upward move
ment.
To all this there seems to be but one
oAiO IAioN ID NAS IN"
price of cotton which is causing a loss
of millions of dollar to the south,
which, though, we hope can be correct
ed by concert of action on the part of
southern planters in Withholding their
cotton from the market to such an ex-
tent as to cause a rise in price.
From the letter of Clews & Co., we
make the following extracts:
The strongest factors in the situation
are the abundance of money an excel
lent investment demand for securities
and the promising business outlook.
Funds are in ample supply, and there is
no fear of monetary disturbance, such
as frequently occurs at the close of the
year. We are just approaching the jan
uary investment demand, which al
ways absorbs many millions of secuHi-
ties; but aside from this there is a sur
prisingly good demand for desirable in
vestments, especially bonds, which has
not been satisfied by recent heavy offer
ings. Within a few weeks these have
included about $780, zoo, 900 Japanese, $685.
Oo0,OO 0 New York, s25, 600, 900 Rock Is
land, $40, 900, 900 Mexicans and a number
of smaller issues, besides which Mis-
souri, Pacific proposes an issue Of $50
600, COO INT Atchison a like amount Our
railroads are in need of large sums to
enable hem to keep up with the growth
OF traffic. The supplying of these needa
was suddenly interrupted by the panie
conditions of 1903 n man. of the rail-
roads ided over the emergency by the
issue of short-term obligations, come
OF which must soon mature and be
provided for. Conditions in many re-
spects are especially favorable to such
neg~otionations, but there remains the
danger of congesting the mon market
and depressing stock market if the sup
ply of new issues outruns the ability
to absorb them. At present the invest
ment demand is excellent, and is ex-
planned only on the theory hat wealth
is accommodating under continued pros
perity and hat many buyers held back
until after the elections.
General business is in very promising
condition, chiefly as a result of a profit
able harvest. Railroad managers see a
big traffic in sight for probably the next
six months and they are chiefly anxious
about their ability to handle the freight
which is in prospect. For the next six
months at least we may expect to see
good railroad earnings.
Our export trade is also good; for
while we will have little wheat or flour
to spare, we will have plenty of cotton,
corn, oats and other agricultural pro-
ducts. This means better times for
transportation interests on both land
| and sea.
At home trade is also expanding, and
there is a good demand for nearly al
manufactured products. The iron and
steel trades are again on one of thei,
spasmodic upward movements; and, as
the railroads are coming in as heavy
buyers of materials, this activity prom.
Uses to last for a considerable period
Al things considered we seem destined
to enter the new yea under very hope.
ful conditions and to enjoy a further
period of prosperity.