Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-07-17
g.

Henry Clews' Letter: News of the
week from the financial standpoint has
certainly been favorable in character.
The publication, after the market
closed on Tuesday, of the government
crop report contained the promise of
moving to a measurable degree the
recent fears of damage to the corn and
spring wheat crops and confirming the
report that large and profitable win
Ter crop has already been gathered.
In addition there have, as factors in
the stock market, been CD the sue
cessful fotation of another large loan
by Japan; (2) the increase in the
semi-annual dividend of the Baltimore
& Ohio whereby that road now enters
the per cent dividend paying list;
60 another favorable statement of
foreign trade, which is of importance
In connection with the money market
of the immediate future, and ca the
fact that the market itself has so
steadily resisted liquidation of most
extensive character by the large pro-
fessional operators. With such COM
bination of distinctly favorable in
fiuences it might seem disappointing
that instead of about holding its own
the market has not further advanced;
but this is readily explained by the
fact that these developments have
merely met the expectations of those
who had taken the trouble to investi-
gate matters, and who therefore were
in a position where they could take
profits at time others were waiting
for the facts to be presented in the
usual routine channels. 1t has, for
instance, been generally known, and
has been repeatedly pointed out in
these advices, that the crop situation
was an exceptionally favorable one
this year; that the success of the
Japanese loan was a foregone conclu-
sion, and that the foreign trade move
ment of the country was on an ascend
ing scale. Most of the weeks in
fluences were, in fact, matters of
knowledge to careful Wall Street stud
ents and, as usual, we're fully dis
counted.
The July report of the department
indicates yield of 100000 bushels
of winter wheat, or s0,000,O0O bushels
more than was harvested last year,
and combined harvest of 705,500,0 900
bushels of spring and winter wheat,
which, if spring wheat maintains its
present position reasonably we'll, will
give, with the exception of 1901, when
the harvest was 74s,o0o,Ooo bushels,
the largest crop of wheat ever report
ed. These are certainly exceptionally
fine prospects for the material welfare
of such an essentially agricultural
country as our own, especially in view
of the high prices the farmer is able to
obtain for his product, No. 2 red
wheat, for instance, selling at New
York above 81 per bushel and No.
mixed corn at something above coz
per bushel This material welfare OIL
the country must readily be reflected
by the traffic statements of the roads
carrying these tremendous harvests
to market, and by the return traffic
in the form Of supplies and luxuries
which the prosperity in the agricul
tural sections encourage the farming
element to purchase.
On the other hand, we should not
lost sight of the fact that many stocks
are on such high basis that addition
al advances would require much
further improvement over present
dividend prospects. Since the latter
part Of May there has been an advance
OF about points indicated by the
average quotations of twelve leading
industrial stocks and Of fully 10 points
as indicated by the average quotations
) stocks. This is certainly a large ad
vance on an already high price level
the average quotations now being
/ more than rs points higher both or
the twelve Industrial stocks above
noted than year ago and on the
average OF the twenty railroad stocks
already referred to. This is situa
ton that certainly suggests caution
on the buying side and the wisdom o.
taking profits on any further substan
tiali advances. It should be remem
. bered that the larger the crops the
greater the banking facilities neces
sary to move them facilities that
must be furnished within the limits
OF q few weeks and must Of necessity