The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1904-06-30
General Business Tone Much Inn.
proved, According to Letter
Of Henry Clews.
INVESTMENTS ARE GREATER
Corn Alone of the Cereals ID
Backward, While All Others
Have Good Start aud
Promise Well.
BY Henry Clews

new york. June 2S--IVhluence ~
gradually strengthening owing to en-
couraging crop reports. an abundance
Of money and the absence of disturb
ing issues in the presidential campaign.
Thus far 1t has not expressed itself
In any decided upward or forward
movements, but values are hardening
and good investments are absorbed
with encouraging readiness. Much of
the buying the last few weeks has
been Of an investment character, mar
ginal purchases being at minimum
because of the ultra conservatism in
duced by the experiences Of the last
two years. Gilt-edgei stocks are firm
" held in strong boxes from which
they do not seem likely to emerge, so
that current demands from investors
had to be satisfied by new issues. the
floating supply of older securities be-
ing exceedingly limited. At higher
prices and later on these may come on
the market to some extent, but the big
owners are not likely to lessen their
holdings at anything like present fig-
ures. Should events prove favorable
during the next two months, the tech
nical position of the market is such as
to favor an advance movement This.
however, viii not be accomplished
without manipulation, and as at pres
ent the outlook does not promise any
active public support, the heavy OPP
orators will be obliged at the start to
put up the market on themselves in
the hope that slow but sustained
advance will eventually create more
activity.
Crop prospects just now are as good
as could be reasonably expected. The
promise at present is for wheat crop
Of about 5SO,O0O,OOO bushels, a corn
crop of nearly 2.sOO,OOO,OOO bushels and
a cotton crop of 100000 bales. Corn
is the only backward crop; but nearly
all the other crops have had a good
start, are in good condition and have
reached degree Of maturity that viii
enable them to Withstand ordinary ad-
verse conditions Of weather, which, Of
course, must be counted upon in all
calculations. Abundant harvests will
furnish much relief to the country at
large, not only by insuring another
season of prosperity to farmers, but
also by keeping down the prices Of
food products, which have had much
to do with the recent high cost Of liv-
ing.
The monetary situation is quite
satisfactory from the stock market
point Of view. Loanable funds are
plentiful and bank reserves much high
er than for several years at this per-
iod. At present rates of interest al
number of good dividend-payi stocks
yield much better returns than cash,
the inevitable result Of which must be
a preference for the former until such
differences are more nearly equalized.
1t must be remembered that our cur
rency supply has been immensely aug
mented during the last seven or eight
years by additions to our stock of gold
and the heavy issues of bank notes.
Business has contracted, but our stock
of money cannot be correspondingly
reduced under the present inelastic
system; hence funds must accumulate
and seek employment in new chan
nels. Crop demands have not yet as
serted themselves, though money will
no doubt soon be sent south to handle
the cotton crop. Western require
ments should be less than usual, be-
cause money is already more abund-
ant than usual at western centers. 1t
is impossible to predict what effect the
war will have upon international move
ments, but gold is still arriving from
Japan and Klondike shipments will
soon arrive, all of which would facili-
tate gold exports should Europe so de-
sire. AS better supply Of commercial
bills will soon be available, however,
the prospect of gold shipments grows
more and more remote.
There is still a good demand for
bonds, which remains unsatisfied In
spite of recent liberal issues. This is
significant, and is excellent proof Of a
better feeling in financial circles. In
this connection it is Of interest to re-
call the heavy short-term loans made
last year by the railroads. These will
in due season mature, and no doubt
a large proportion will be turned into
fixed capital in the shape Of bonds
that would have been unmarketable
when the original loan was made. This,
too. is convincing evidence Of BETTER