Omaha daily bee., 1906-08-22
CROP AND BUSINESS OUTLOOK
Annual Analysis Of Situation BY Chicago
Banking House.
WHEAT PRODUCTION LARGEST ON RECORD
Corn T. Needing Rain In Parts
of some states-FinanciaI situa-
tiOn il simply Ex-
celIent.

Chicago, Aug. H.-The annual crop and
business report of the Commercial Ma
tionsl bank Of this city will be issued to-
morrow. The crop report covers the Mis-
sissippi valley. and a few of the more i'm
portant states of the Pacific coast. 1t will
say in part:
The wheat crop OF 1906 will be among the
largest and be tsever produced. In yield
and quality will be far beyond the ordi-
nary. In these respects II may be consld-
cred nearly perfect. The period of uncer-
now be called practically ''out of danger"
The yield of soft winter wheat is large.
quality. the finest. and movement. free.
lnasmuch as this movement has begun
early and all grains are now nearly or
quite on an export basis with the ten
dency OF prices downward) a large export
business may be expected.
In what may be termed the northern
zone of the corn belt, embraving the north
ern er part Of Indiana and lllinols all Of
Iowa and Nebraska, northern Missouri and
portions of Kansas, the corn crop is large
ana unusually promising except In south
ern Iowa, where the condition is spotted
ana rain needed. In the southern zone of
the same belt embracing southern and CEN
tral Indiana and Illinois, parts of Missouri
and Kansas. the crop has been affected by
dry weather, and is backward; the pros
pect Is quite discouraging unless rains come
shortly followed by continued favorable
conditions and late fall: We estimate
six per cent larger than last year.
On the whole the oats crop will average
ia fair to good. and the aggregate yield win
The condition of barley is especially good
IN nve important states, California, Min
kota. The total yield for the United States
should be about 143, 900 bushels.
The average condition Of the rye crop is
about three per cent better than in 1906.
The hay crop Is quite short.
Business Outlook In Good
Under the head of business summary the
report says:
The letters from leading bankers in all
ordinary and central reserved cities show
without exception. that the business and
all that could be desired; the outlook is
encouraging and entirely satisfactory In
deed, 1t seems that we are entering upon a
period where 1t is not unreasonable to ex-
pect realization Qt legitimate profits on the
large amounts thet have been expended In
the betterment OF railways and Industrial
enterprises during the past eight years; in
creased earnings inevitably must bring in
creased dividends. With the exception of
some OF the smaller cities in the middle
west, banks throughout the whole country
report strong, active and healthy demand
for money at firm rates, and while there is
no prospect of recession In interest rates,
money is, and probably will continue to be
abundant for legitimate business needs. The
disquieting features are the possible seri-
BUSINESS of Russian internal complications
and the democratic political unrest mani
tested in growing sentiments of socialism
and fraternal antagonism tomorganized
capital, as well as large individual and all
forms of incorporated interests.
The railway situation is reported sound
and healthy and everywhere there IL mani
festeds.a feeling of satisfaction. confidence
and even optimism. Nc dimirution In
volume of business Is expected before the
end of 1907, and some officials are preparing
for fifteen per cent to twenty per cent in
crease next year. The rate bill is not feared
II properly administered. wholly apart from
political and partisan considerations Under
fair and proper administration II is be-
lieved will be the case, the law will, 1t Is
conceded even by railroad men, correct
abuses and result in good to the railroads
as well as to the public. h
The iron and steel situation Is stronger
than at any time during the past two years,
and conditions in all branches of the trade
were never better. Volume is at high tide
and on orders already booked will continue
well into next year.
Every line OF industry shows large volume,
with increasing activity; prosperity is gen.
eral, and nowhere are there any signs of its
discontinuance. Evidence is mot lacking,
however that the conservative element.
particularly the leading bankers In the large
cities realize that such unprecedented pros
perity cannot be expected to continue in
definitely; that further expansion of credits
and volume of business, as well as personal
eXtravagances, should be checked