Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-07-24
HENRY CLEWS' LETTER.

HENRY CIEWS' L. lex.
AS has been repeatedly pointed out
in these advices, many Of the standard
investment stocks are on such a high
basis that quotations can hardly be
said to be justified either by their
present dividend distributions Or by
any distributions their directors may
consider it conservative finance to de-
clare within the next year or so. Our
country is essentially an agricultural
country; and if the present promises
of the harvests are fulfilled we may
look for one of the strongest buying
movements, industrially, that this
country has ever witnessed. It is true
that the wheat crop of 1904 was a
short one, but to the farming industry
It was nevertheless profitable one,
in view of the high prices received
from our domestic mills, which, it will
be recalled, not only bought at high
Yrices all the available domestic wheat
they could secure, but purchased large
amounts of Manitoba wheat and re-
imported the American article from
the other side. Therefore it seems
safe to assume that the small harvest
was compensated for by the high
prices. The 1904 corn crop was an
abundant one, and was also a particu-
larly profitable one to the farmers be-
cause of the increased demand result
ing from the scarcity of wheat; and
the cotton production was both large
and highly profitable. We may there
fore assume for all practical purposes
that the recent record of favorable
crops remains unbroken and that the
farming communities are already in a
particularly prosperous condition at
the beginning Of one of the most pro-
life harvest periods in their history.
From the agricultural standpoint, con-
sequently, the outlook for a period of
inflation-of exu5erant prosperity-is
certainly favorable. And investiga-
lions by usually conservative authori-
ties indicate hardly less favorable
outlook in the commercial and indus
trial fields. Probably the best test of
the commercial situation is the great
dry goods distributing machinery of
the country; and thorough inquiry
among these distributors indicates
particularly optimistic conditions. The
dry goods jobbers Of the country al
most without exception report that for
the first half Of this year their bust
ness has shown distinct improvement
both in volume and in profits over the
corresponding months of 1904; they
also report their stocks in good con-
dition and preparations for a decided
ly improved fall trade; and perhaps
the most significant feature of all is
that the greatest optimism is ex-
pressed in the great corn-growing Sec
ton of the country. From the indus
trial standpoint the great iron and
steel industry may certainly be con-
sidered the most accurate barometer
of approaching conditions; and recent
reports quite generally indicate that
the glass in this direction is rising.
The general export business is also
working into good shape, and the
fiscal year that closed with the month
of June was the largest, from an ex-
port standpoint, that we have yet ex-
perienced-a fact that Is particularly
significant in view of the small ex-
ports of agricultural products resulting
from the smaller wheat crop and from
the high price of corn and provisions
resulting therefrom. Imports are like
wise in unprecedented volume, which
at this time is an important factor in
connection with the governments
revenue policy and with the tariff
action to be taken when congress con-
venes later in the year. Agitation for
a change in tariff is based almost ex-
clusively upon the necessity for in
creased revenue to provide for the
extraordinary expenses Of the govern
ment; and when 1t Is found, as It will
be II the present import energy con-
times. that the revenues are exceed
ing recent expectations, we may look
for a much less urgent demand for
anything like drastic reconstruction
OF the tariff schedules.