Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-06-14
BUSINESS CONDITIONS.

The farmers all over the United
States are enjoying unusual prosperity
on account of the good prices obtained
for their products, according to Henry
Clews. He says that the business sit
uation is very satisfactory and pre-
diets good fall and winter trade. His
weekly letter is in part as follows:
"The American business situation is
eminently satisfactory. Crop prospects
thus far are certainly encouraging. "A
fine winter wheat crop is practically
assured and good prices will be Sc
cured by the farmer. Other grain
crops also promise well at this date,
although corn planting is trifle late.
A moderate increase in the cotton crop
is also anticipated and the Southern
planter is justified in expecting anoth.
er profitable season. All over the Uni
ted States the agricultural classes are
enjoying very unusual prosperity
through the good prices obtained for
their products. This should assure
the country another good fall and win
ter trade. Reports from large business
houses in the west are exceedingly en-
couraging in this respect No com
plants are heard about over-supplies
in the hands of distributors; and,
while prices are high, that fact does
not yet appear to have had any mark
ed restraint upon demand Should
present promises, therefore, be full
filled we may anticipate another good
season both for the railroads and the
great Industrial concerns.
Railroad earnings continue to show
liberal gains, the totals for the fourth
week in May of twenty-four roads
showing gain Of about 13 per cent
over last year. These are rather sur
prising gains considering that May
earnings on some Of the important
lines must have been considerably d.
minished by the coal strike, shipments
of anthracite In that month being only
3,250,000 tons, against 100000 tons in
May, 1905. Clearing house returns at
the leading cities show very moderate
gains, the total last week being only
about per cent greater than year
ago. This Is due chiefly to large de-
cline at New York, where speculation
is much less active than year ago.
In many Of the interior cities, especial
ly in the west, 1t is noticed that bank
clearings still maintain a good average
over last year. Another bright spot in
the general situation is the iron and
steel trade. The demand, for all sorts
of iron products continues remarkably
heavy and there is no sign whatever
of abatement. For months to come the
railroads, which consume fully go per
cent of the nations products, are going
to be heavy buyers. of. iron and steel,
r0 0r1ry Pr,r ror o1c hut Po,.
usual amounts Of new mileage. The
steel rail product for 1905 is oversold
and orders for over, 100000 tons are
already on the books for 1907. With
such satisfactory conditions In the i'm
portant departments Of industry just
noted 1T is impossible to be pessimis-
tic regarding the future.
Within the stock market, condi-
lions are not so eminently satisfactory.
Some Of the encouraging features
above alluded to have been well dis
counted. Prices are exceedingly high;
SO high, In fact, that investors are not
rushing for stocks when they can Sc
cure more profitable employment for
their money in other directions. An
other deterrent feature is the large
present and prospective increase In
the supply OF new securities, The
bond market is already badly longest
ed with new issues which investors
will not take until money market con-
ditions improve. At the same time 1t
is well known that the railroads will
be. Obliged to raise considerable
amounts Of new capital during the
next few weeks, either through new
stock and bond issues or short term