The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1906-06-25
BUSINESS

Following are excerpts from the spe-
Icial circular of Henry Clews. dated
New York, June 8:
The stock market is in rather an I'M
usual condition. While sellers are ex-
lceedingly optimistic, buyers are con-
Iservative and more or less critical. Gen
leral conditions continue excellent out
side of the stock market, and are much
in favor of holders. The local none
tary situation. for instance, steadily
improves. Funds are returning from
1.-THE interior and large amounts (fully
100000 thus far) have been sent back
from San Francisco, so that our bank
reserves ought to show a rising ten
dency. Cali loans have consequently
been easy. indicating better supply
of money for immediate needs. although
time money is still held at fairly good
rates. III the foreign markets easy
conditions also obtain. and the outlook
is for continuance of these favora bile
conditions.
The American business situation is
eminently satisfactory. Crop prospects
thus far are certainly encoura cling.
Tine winter wheat crop is practically
assured and good prices will be secured
by the farmer. Other grain crops also
promise we'll at this date, although
corn planting is a trif1e late. A mod
crate increase in the cotton crop is also
anticipated and the Southern planter
is justified in expecting another profit
hi
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 winter trade.
Railroad earnings continue to show
liberal gains, the totals for the fourth
week in May of "a roads showing a gain
maintain good average over last year
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 decline at New
! York, where speculation is much less
active than year ago. In many of the
interior cities, especially in the West,
it is noticed that bank clearings still
MAINTAIN a good average voer last year
Another bright spot in the general sit
uation 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 so per cent. of the ma
tions products, are going to be heavy
buyers of iron and steel, not only for
renewals but for very unusual amounts
of new mileage. The steel rail product
for 1906 is oversold and orders for over
1,000,000 tons are already on the books
for 1907. With such satisfactory con-
ditions in the important departments
of industry just noted it is impossible
to be. pessimistic regarding the future. |
Within the stock market conditions
are not so eminently satisfactory. Some |
of the encouraging features above al |
luded to have been well discounted, !
Prices are exceedingly high; so high, in |
fact, that investors are not rushing for
stocks when they can secure more prof |
liable employment for their money in |
other directions. Another deterrent !
feature is the large present and pros |
pective increase in the supply of new
securities. The bond market is already |
badly congested with new issues which |
Investors will not take until money |
market conditions improve. At the
same time it is well known that the |
railroads will be obliged to raise con-
siderable amounts of new capital dur
ing the next few weeks, either through |
new stock and bond issues or short term
notes.
The situation is one that favors an
upward trend in values, with occasional
reactions. Stocks have been accumu-
lating in stronger hands, and no doubt
everything will be done TO keep the
market in good form. There is a large
amount of money in this market await
ing investment, and nothing but the
fact that shrewd investors consider
prices too high prevents quick absorp-
ton of floating securities. A decline in
time money rates just now would in
stimulate investment buying.
July disbursements will soon be avail
able. Last year they aggregated $780,
000,0 and this year they will be even
greater. June and July should witness
a comparatively easy money market,
but when the crop movement sets in
higher rates must be again expected.
No undue stringency, however. is prob
able while our credit abroad remains as
strong as it now is