The Montana plaindealer. [volume] (Helena, Mont.) 1906-1911, 1907-08-30
CHICAGO BANK GETS OPINIONS
FROM over The U. S.
Prosperity on the Flood Tide-crops
Excellent and Business Is on a Sound
Basis-None May Deny It-Consen-
sus of Opinion in Thirty Thousand
Replies from Nations Doors.

Commercial National bank, one Of the
most careful and at the same time
one of the most powerful financial
institutions of Chicago. The report
is made up from replies to several
thousand letters of inquiry sent out
to correspondents and others, and
represents opinions of bankers, bust
ness men and crop authorities in the
west and southwest:
1--WE endeaVor in this summary to
present to the public an answer to
the question which all men are ask.
ing: is the business situation sound
and the outlook assuring?' This an
swer is drawn from a composite pic
ture of conditions as graphically de-
scribed in letters from thousands of
banking, manufacturing and merchan-
dizing correspondents throughout the
country. Not far from 10000 separate
replies enter into the picture before
us and the defniteness of the image
is remarkable. There is no ~vagueness
or blurring about it. 1t is clearcut
and incisive.
"The overwhelming preponderance
VI CNAhVHCC 10 AAhL AhC buOllCoD bll
uation is sound and satisfactory. Not
n of the thousands of replies mega
tives this conclusion in de-
finite terms. That there has
been a marked easing down from the
tension Of the spring and winter
months of the year is generally adj
mitted, but it is admitted without a
trace OF regret or misgiving. The
country had been rushing ahead at a
whirlwind pace until the tax on credit
and capital accumulatiOns compelled
a respite. The demand for goods to
meet instant needs, or to replace
other goods destroyed by wars and
calamities, or to provide for the GER |
tain needs Of the future, has been UNI
~precedented.
Tt meet this 1t has been necessary |
for the manufacturers and distribu-
tive agencies of the entire world to
employ almost every available unit
Of money and to put into action every
potentiality of credit. The result is
too familiar to all men of affairs to
need exposition. The strain on the
money centers Of the world has been
very great. In ordinary times the
stTingency OF one country is offset or
relieved by the plethora OF another,
through the commonplace of the
mechanism of exchange. But it has
been different since the peace of
Portsmouth. There is no easy money
IN the civilized world today.
ITO suggest an idea of the urgency
of the demand for capital to expand
and equip the productive capacity of
industry so that it may be on a par
with the fast-increasing consumptive
demand for the things of modern life
we call attention to the world phe-
of stagnation in the purely
speculative department of affairs. Re
Gently we have seen a record low price
for the British consolidated debt
ccnsols'-indicating that the rewards
OF capital in industry are so attrac-
tive as to prompt withdrawal of funds
from the acknowledged chief of
securities. The same phe-
nomenon in its application to the fund
ed loan of all governments except our
for this there is a special
and artificial reason-and in it's appli
cation to the bonds and shares of the
exchanges, is a further light on the
which is everywhere felt in
money affairs.
ut is a curious and striking fact
in all the thousands of replies
which enter into the picture Of the
business situation before us there is
hardly a reference to the speculative
lethargye which contributes so large
part of the new from day TO day.
And yet it is a truism that the secur
.ty markets exist merely as governors
Of the supply of mobile capital. OF
necessity their activity must decline
when economic forces drain from their !
stocks of stagnant capital. When the I
mobile capital of the world is needed {
n productive enterprise or in distribu- g
i've service 1t must necessarily de
the stock exchange, and inevita-
bly, "a before the necessities and
'vertopping Importance of industrial
s
'"The bankers of the country, with S
ew exceptions. in the far west. report j
n extraordinary demand for funds in
III lines or business activity. Inter s
st rates are very firm everywhere. h
in the central reserve and larger v
eserve cities the inquiry for funds so
much exceeds the supply that money 4
: described as very tight n
Business is generally reported to |;
e good in volume, making an excep-
for the great hesitancy in the
letal markets. especially in copper
the alloy metals. Voluntary con- h
essions in the prices of these ma h
erials have made buyers wary, and is
iey are generally waiting in the hope m
I further forced declines. RI
THE high cost OF materials and Ia ii
or, and especially a certain ineficien- III
Y Of labor, are noted by some of our hi
lformants as unfavorable factors in
he situation.
A.