The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-11
rRE EiNANriAL alrrAriON

W. NeHH NV INfN fUlN1NfV w W. |"'N
mafbr' go upeaed T0Nsfi ~ ehrsr "
ihr Ne~h speculative rfrh' 'ssine -' IN anl
~ rrsSf ~ IN msfH~' w. ahs,fh a"ct
uh,lsf thrs~ ss'sg Nss fund ~ H. uofe NJ
Ices BmHsr rtH ihs' prees generally ~
tmYri y isaifs ~ ffs' Fas eieafiy apTafrn'
fIw advancing Tendency Wa n"' ~
mtteily esussI Nv itw vieorrus huvine ~
ssrbs ~ sttsf ibs outailr puhiic w ~
ffaa, rtbH alisi rnsefs ttf " ihrsH in'ef
eHa yefs hU' rar ieira'io NJ In no HdtHtc"
ihsv sefr MT NJ lrf# opposing y nof 80
any ltfes Hmrunt ~ #rrba Nv 80 frund ~
sels Nhrn fhr nm me- M hrf f1ar w fell
Thr arn~fal fseslna fHf ihr a'fen n h ~ bn
nnafRc' S~umi Nv and in = refv clear Neh'
A. fhr cuas ~ 'hr previous trek rfTfeaa
siphal sfrrula'pfs uitfrvinR ihr rrufsn ~
Tho marks during Nv pofiri il~h ended
found hR' rfit~a e~tr fisirg IN ihF creer-
Ing wHy Stitch saa nlovN ~ rttefs suH
asa' its ~ unHerlyin nrfnncsa anti fcsilienor
IN financial conditions Ventures fHf ~"
fia~ fa' hrf han fof Tho fall IN 'hr mafhet
wefs In oth"f words dia inctly Indicated 10
Tho professional speculative elcmsnt No
thosr ahofdine thn h~si chahcra ~ profit,
nor did a more s-ripua study ~ 'he general
situation In any cay alter 'hla diagnosis.
Thsre ara really only W. matters ~ Tho mr..
mont effective In shaping tho conrae ~
values The money situation and he state ~
the crops and NJ there he latter IL Tor OBJ
vious reaeona much tho most important.
Now he general crop out hook Ia splendid.
~ far aa spring and winter wheat arr ron.
cerned, II will probably be found that the
Governments report ~ heir condition on
the frei ~ the month that will 10 made
public to-day will show n somewhat lower
average than II did n month previously.
Drought has hurt winter wheat a little bit
and there has been. perhaps, an overabun-
dance Of rain In the spring wheat country.
that has also, II may be. not been helpful to
corn. But the drought in the winter wheat
belt was Of brief duration, while experienced
people in the grain trade shake I heir heads
rat her incredulously " hen they are told that
considerable damage has been doneto spring
wheat by rain at this time OF the year. De-
spite various sensational reports Of injury
to crops put out by different State agricul-
tural bureaus last week, the promise as gath
cred up to this time from every conse rva-
tive source OF Information seems still prac-
tically unimpaired for abundant grain
crops that. will sell at prices that will prove
tlilNNic Z, " III llo-
duce thcm. Il is always a little st strange that
moro attention seems to converge in Wal
Street upon the condition Of growing grains
than upon the condition Of cotton, for cot
ton Is the country's leading article OF ex-
port and it's sale has more direct influence
than any other one thing upon the state Of
our foreign credit. The announcement
during the week really meaning mos. to he
-A--t ----l- z.- 49, a. |
report Of the year, published on Monday.
putting the increase Of cotton acreage at
e.2 per cent. or indicating a total area
planted to cotton Of rs, $50, coo acres. and
estimating the condition OF the crop as
better than 1t was last year and fully up to
t be ten year average. 1t is therefore the
general opinion in the trade that with aver
age weather from now on a cotton crop Of
between II 900, 900 and II, 900 900 bales Is
likely to be produced this year, and, should
the production be as large as this, a most
decided step toward an insurance of pros
perity in the country as a whole for anot her
twelve months would be taken.
It has been said that the outlook for the
crops was more worthy Of observation
In a general survey OF financial matters
now than the financial situation itself.
This is because the crucial point in the
situation, strictly 30 considered,
lies in our ability later on to pay off our
borrowings from Europe with e1-
ports Of commodities. II we can meet our
obligations in this way, or even to a con-
siderable extent in this way, the money
situation in the fall will be nothing that
Wall Street need dread. Financial condi-
ions Just now are easy and there is every
indication that they will become easier.
Time money rates for periods lasting into
next wear fell last week-and this repre-
a development making for cheer
fulness only second to that of The bright
crop prospeet-fr rates varying from
between 81 and 81 per cent. to those
between 5 and 81 per cen Money
can be obtained by houses in good credit
for q period maturing next March for 3
Der cent. A little higher ate is usually
asked for maturities falling due just after
the beginning Of the year, which is, OF
a time when money is ordinarily in
strong demand. One thing that has directly
served to depless money rates is the sending
back Of a large portion Of the money shipped
us recently to the Pacific Coast. What
been discovered is that the hasty and
almost panic stricken transfer of $40, 900 ,oC0
to $50, coo 900 to California in the days I'M
mediately following the earthquake was
totally unnecessary. The people in Cali
fornia had no need for the money and will
have for a very long time to come.
The task Of rebuilding San Francisco will
be a work not Of days or months but Of
wears. and the city will need money only
gradually and from time to time. There
is no doubt that a certain minimum In
money rates at this centre will have to be
II our bankers mean to keep
the money that is coming back from Cali
since otherwise payments of our
foreign finance bills that are all the while
falling due and the higher bid for money
in the Western centres will have a tendency
to draw money away from Wall Street.
Our best bankers. however, believe that
money rates will tend to a lower rather than
a higher level during the next " months.
qualifying their views as to the money
situation for the last half of the year as a
whole by a reference to conditions con
the crops, the payment Of insurance
losses at San Francisco and other matters
vet considerably undeveloped.
Naturally the strength Of the market
last week was exhibited most in various