Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-05-04
A RAY OF LIGHT.

AS ray of light through a gray
sky comes the assurance today of
Henry Clews that the panfcky condi-
tons of the stock market are not hav-
ing any effect upon general conditions
and that the speculative battles which
have during the past few weeks been
reading public with fear
for the consequences is only a surface
furry and cannot do any damage to
the country at large. Mr.. Clews is
looked upon by many people through
out the country as reliable in his
views Of matters financial and he has
demonstrated his reliability on more
than one occasion. 1t is encouraging,
then, to read in his weekly letter the
1.-THE weakest side of the situation
seems to be strictly confined to the
stock r.arket, which has overdis-
counted all favorable conditions. Gen
eral prospects continue favorable,
the crop situation being promising in
cold weather. The industrial situa-
ton is also suspicious, and building
is likely to be conducted upon an I'M
scale during the present
year. so that labor will be well en-
ployed; and, profiting by past expert
ence, 1t is to be hoped that there will
be less trouble arising from strikes
and disputes between employers and
employees. For all sorts Of building
material there will be an increased
demand at profitable prices. Phe-
nomenal orders are being placed for
iron and steel, and, while the railroads
continue as usual the principal buyers
a larger portion Of orders than usual
are coming in for general construc-
ton. The splendid report of the
United States Steel Corporation is
emphatic testimony of the wonderful
activity in the iron and steel trades.
Other metals sympathize more or less
with iron, for the reason that they,
too, must share in the general demand
for constructive purposes. In nearly
all respects the industrial situation is
fully as satisfactory as during the
boom period of two years ago, with
high and, therefore, more stable, while
labor is well ard profitably employed
and fortunately less disposed to incite
trouble. Many of the industrials are
reporting good earnings and are likely
to continue SO doing for some months
to come. Railroad earnings are also
excellent. Reports for the second and
third weeks of April show gains of
nearly 10 per cent over last year. An
other proof Of the large volume of
transactions is found in the clearing
house returns, which last week were
Sc per cent ahead of the previous
year and the week before showed an
increase of IS per cent. Financing of
important negotiations as well as spec
ulation, may have something to do
with this Increase, but very consider
able portion of it is unquestionably
due to the genuine enlargement of
business.
'"The financial situation abroad is
also satisfactory, foreign markets be-
ing generally on sounder basis than
for some months past and American
securities steadily rising in favor. The
great increase in gold production in
South Africa is also having stimu1at-
ing effect. Our foreign trade shows a
reviving tendency, especially in ex-
ports, which in April rose to $134, OOO,-
600, an increase of s17,OOO,0OO COM
pared with last year. This gain was
almost equally divided between agri-
cultural products and manufactures;
the latter, a most encouraging demon
stration of our growing capacity to en-
ter into competition with ,other ma
lions in the worlds markets. Our i'm
ports during April rose to $1,000
600, an increase of $19,0OO,O0O which
chiefly occurred in food products and
in materials for use in manufacturing.
and is, therefore. to be interpreted as
an indication of home prosperity. The
foreign situation is, Of course. still
complicated by the war between Rus
STA and Japan. There is good reason
however, to believe that peace nego-
tiations have been quietly renewed,
backed by France and the United
States. These would undoubtedly be
hastened by a decisive naval battle be-
tween the two fleets now opposing
each other in far eastern waters. At
times it almost looks as if their com
manders were evading actual battle in
order to allow negotiations fair
Glance; but Japan, encouraged by
past success, has now taken such an
OAipddIlC SIduu sIudC IL seems hardly
possible for Russia to enter peace ne
gotiations without making a final ef-
fort to- avoid complete humiliation. For
Russia there is vastly more danger
from Internal discussions than from
her futile struggle with Japan.
The outlook for the market is I'M
settled. Bear success is likely to con
tlnue and be followed by renewed at
tacks after the rallies; and both in
Yestment and, speculative purchasers
will find it, safer, and more profitable
to watch for the weak spots thus ex-
posed. We are likely to witness sharp
fluctuations; very enticing to the MIN
BILE operator, but dangerous to lightly
margined accounts, unless operations
are made with extraordinary good
judgment. Much will depend upon
the action of the big holders. who If
must be remembered, have sold MANY
stocks, dissolved some important pools
and who will not repurchase until
prices become sufficiently attractive. !"
WOMAN VS.. MAN.