Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-06-28
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IN FINANCIAL CIRCLES.

According to the weekly letter OF
Henry Clews there is considerable in
ertia in high financial circles at the
present time. Several Of the promi-
nent fnanciers are enjoying them
selves in Europe and are inclined to
postpone further operations until the
fever for public investigation is less
marked and the general outlook more
settled. The threatened revolution in
Russia is said to be one of the disturb
Ing features on the Stock Exchange.
He says that there still remains very
strong undertone Of confidence based
chiefly upon the large volume Of bust
ness in progress throughout the coun.
try and the general satisfactory condi-
tion of industrial interests. One of the
strongest elements is the dividend sit
uation, number of concerns having
increased their returns to stockholders
during the past few months. Regard
Ing the crop outlook and the Russian
situation Mr.. Clews says:
THE future of our stock market, of
course, depends very largely upon the
crops. Thus far advices have been
somewhat conflicting. A sufficient
wheat crop is practically secured, but
no bumper yield. Corn is late and it
is still too early to form an opinion of
this all-important grain. There Is moth
ing disturbing, however, just now in
the grain outlook Cotton appears to
have been somewhat affected by I'M
favorable weather, but the prospect is
for an abundance of this staple at pro-
fitable prices If American farmers
have another fairly good year, as now
seems probable, we may confidently
look forward to another season of sat
isfactory business conditions Should
the crops prove disappointing the in
jury will fall less severely upon the
farmers than usual because of their
generally excellent financial condition
Nevertheless, a poor harvest might
easily mark a turning point in bust
ness. In the money market reason
able rates are anticipated until crop
demands assert themselves. Prepare
tons for the July disbursements next
week, aggregating over $150,000,000,
may cause a temporary disturbance;
but monetary prospects have been ma
terially improved by our ability to do
more of our banking abroad, as we'll as
by last months gold imports and by
return of funds from San Francisco.
There are no important symptoms Of
trade reaction in any department, nor
can any signs Of over-production be de-
tected in the large industries, though
1t is quite conceivable that any decid-
ed check in consumption from any
cause whatever might quickly bring
us into period of over-production. AS
just said, however, there is nothing Of
the kind yet, in sight.
THE revolution in Russia is particu-
larly threatening. In the event Of a
crash at st. Petersburg or serious
break in Russian securities. Paris, the
very spot upon which we are looking
for the necessary increase in our cred
it, would be severely shaken 1t is I'M
necessary to point out that any finan.
cial trouble in Paris would inevitably
have marked effect in New York, not
only checking further borrowing in
that quarter but also drawing from 9TH
er money markets to which we might
otherwise look for assistance. OF
course disaster may be averted, blu.
the situation Is sufficiently serious to
warrant much caution Security prices
in New York are exceedingly high, ev-
en- allowing for better dividend pros
poets. Our credit is greatly expanded
as shown by our loan account and by
the necessity of going abroad for fur
thaS extensions. In short. having prac-