The San Francisco call., 1905-08-17
GENERAL BUSINESS CONDITIONS.
~ nat Two Posted New York Houses
Say Of the situation.

ro = -e.---- 'is views q tie current stock and
- - - sl,'-sJ-ea are taken from the cireu-
- q kte tnaleiaf firms named below:
Hs--NhA CLEit'S--The money situation will
- - - q ne test As tie time is now at
= - ~ y .lsA Luilas VII be needed al the West
sf--,----.- - Stel's- " estern bankers are par
t--d-ei ~ connceur this year thar they viii not
cal fnstftl,fir-s --ss,,- - - = --l-s---
Eect II the main. bat their statement fs tech
- -. - as me money supply Is concerned,
----s -eaSp-s NeW. YORK Is a central re-
serve city. and the out-of-tOwr banks are D r
---lel . count their deposits IN NeE York
- - oI their legal reserves Therefore.
= Usually the case. when funds are not needed
- crepS and the Western banks cannot Use
New York and the New York banks either pay
NAein interest upon these funds as deposits or
purchase with tnen commercial peper or other
forms q maturing Investments. NaturaI I!y
l1-s form OF employment fer Western money
Is 50 arranged as 70 make The funds avaiIable
when most needed the West; and the cur
Tency movement. therefore becomes adverse 10
New York at crop-moving periods even though
slcn movement rejects merely the return OF
The West own FUNDS. So lar as the financial
sLsnsll q NeW York Is concerned IL really
makes lttle difference what these Westbound
1ull-s are called since they figure in the state
lnEnt OF the Associated Banks and contribute
- me reserve Lhe larger the crops the greater
Ile concentration OF currency required 70
llnance them and II IS hardly probable that
this year of brilliant harTeSts is going 70
entirely escape some period OF monetary con-
Railroad earnings and bank cIearings con
unue 70 reject general trade prosperity. and
raken altogsther. commercial and industrial
-.--d-li--s -elfe LEtte 70 De desired On the
-aeE ls-Acr uere are one OF Two features aside
IN The possible money unrest that VIII bear
Y tchlng Two OF these have direct con-
i-ction WIKI The South; namely. the fever sit
sa-lru and tie poorer prospects Of the cotton
crop The former has not suecUmbed 70 the
-eslrlcllFe measures as rapidly as was hoped.
although there is. of course. no occasion for
raElne ANYTHING like an alzrmist view Of the
s--l@llorl cotton crop prospects show deterior-
ari91, and while this deterioration may be re
necte1 N higher prices for the staple IL Is not
the parl OF wisdom 70 argue that a short crop
z
= 8 BACHE 4 CO.-The indications set
rcrth "a the Government crop report vindica te
The expectauions Of the most sanguine In
iei5 = s-sicsfes - = ei 600 GO bS5she1s ss
while the Indications are for q corn crop Of
; "a 10000 bushels. OF 230 90. GOO bushels
more than was harvested in 1904. Bumper
crops are practically assured 70 the country, and
their sale az satisfactory prices means another
i is earnings and dividends that interest
ths average man. This years dividend record
creased disbursements By Chesapeake and Ohio
fiscal yHar 1-sr enesd. which new oeming
% hand, are an eloquent explanation q The
shares For the year ended June 30 the Great
Northeru earned Is per cent OF its SI25. 009. CO
capital s.. Paul earned IL per cent, Illinois
Central II per cent. and the 500 road lS
with bumper crops assured. railroad and In
custrlal companies ALREADY are beginning 70
place heavy orders for equipment and SUP
plies. KAN OruerS Tor -l1,eaJ NelS OF EeaNs
rails are pending, and viii probably be closed
thls month For The full fiscal year. the Steel
cempany.s earnings are conserystively estimat-
ed Al SIS. eol, go net. OF equal 70 ~ Der cent
on the common stock The steel business to
Gay is more stable than IN 1902 at the height
OF the boom The demand is large and increas-
Ing. and manufacturers are determined 70 keep
prices within reason and prevent an inflated
market Copper IS strong az 15la 10 l55s
pound for lake and elecrrolytic. and the market
Is a natural Consumption is exceeding
Iroduction- The copper situation is entirely
stable fn srroug contrast with the artificial
E7-cent couDer market of 1900 when the ANAL
Eauaetd conlpany was storing copper 70 main
tain prices
ksonae of the high priced stocks in the last
have been bought bF weak holders on
rlarcius ard on reaction such stock may be
forced on the market az a considerable sscrt-
zee % DC followed by a quick recovery. So
Tar as business conditions. the Industrial and
co-nrnsrciai outlook. and the crops are con
cern=d there is little 20 BE- desired Il seems
probable these factors viii Ultimately be re
hecre5 IN higher prices. Meantime mercy rates
may become an Important market coust tderation
a. any ttrne-