The San Francisco call., 1906-07-19
STOCKS. CROPS AND TRADE.
The Situation as Outlined by Henr
CieFve

~
Ciews.
Henry Clews. the New York hnancier. gives
ne following clear view OF the general stock
crop and trade situation:
The absolute Indifference Of the stock market
g g eooa news is unusual. Favorable crop reports
increased dividends and improvement fn the mon
- S---il-"St selllhs rather than buying OF Sc
curlues. OF really discouraging news there is
lltue, but the bullish interest IN the market is
apathetle and discouraged feeling prevails IN
speculative circles, though not sufficiently strong
. simulate any aggressive bear campaign The
fact that stocks have declined 10 10 90 points.
already taken place, seems 10 be forgotten Ap-
parently there is an outpouring Of stocks from
somewhere, and the question Is. from wheret II
would be equally Interesting 70 know where
these securities are going One theory is that
large interests with exceptional facilities for in
formation foresee g business reaction in spite
OF the present activity, and are anticipating its
ehects. The more probable theory, however, is
that leading banking interests recognize that high
Pc tes FOR money mean lower prices for stocks,
and thar. coupled with the large increase IN new
Issues of various sorts. q readjustment between
money rates and Stock Exchange vniues is now
3n progress. his read5ustment has been going
on Tor fully SIX months and the market situation
IS greatly relieved and improved thereby. Specula-
tive accounts are being extensively liquidated.
The bond market IS stiu overloaded with unsai-
able issues and new supplies are still fOrthc0m-
3nE. In short. there Is no sign Yet Of any abatc-
ment OF the demands upon the money market.
Many new enterprises are under way which wall
make further demands upon our monetary re-
sources hence, the firm rates for time money.
the report OF the Comptroller of the Currency for
July is showing loans and discounts Of the ma
tonal banks 20 be 81 206. 0oo, ,09o, compared with
8. s99 600 600 in May. 1905. This is an increase
OF over $500 600 in thirteen months
THE CROPS.
The crop situation Is eminently satisfactory.
p wheat crop of over To-. 600 600 bushels. in
& ted by the last Government report. is nearly
j I00 600 bushels greater than the prospects OF
year age The corn crop Of 1000 O0Oi GOO bushels
Is the present promise which is almost a record
crop and 90 1000 bushels above last years lnQl-
cations. good cotton crop is also promised, the
average estimate being 100000 bales. Should
we have a large wheat crop. that means much
prosperity for the farmer, inasmuch as 1t is q
large money producer. big corn crop means
much not only for the farmer and the railroads,
but also FOR the many directions into which II
enters for consumption, such as pork, beef, Whis-
Ky. starch. glucose. etc. a large cotton crop
viii be beneficial. inasmuch the larger portion
OF it goes for export. and at present good prices
viii Yield q large amount Of sterling exchange
with which 10 settle our foreign Indebtedness.
GENERAL BUSINESS.
The general business situation continues
prom Sing. A more conservative tone prevails
among the leading business men than year
consideration. Our iron and steel trades. Of
course, show no abatement in activity which
promises 90 continue FOR another six or twelve
months. The weakest element IN the business
tate. Signs Of overriding there are beginning 70
multiply. and il Is becoming increasingly difficult
20 place real estate mortgages. partly because
lenders are becoming distrustful Of the situation
? Snpcialty Of this business have taken about ali
the mortgages which they care TO handle, our lie
insurance companies having invested freely IN
This direction ia preference 10 high-priced bonds
estate operations. and a check VIII probably hrst
come from banking sources"