Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-08-15
RESUME OF WALL STREET
By Henry Clews..


NEW YORK, Aug. 15.-The Stand
ard Oil decision and the popular out
cry against corporation misdeeds over
shadows all other issues in the stocE
market this week. Prices have under
gone sharp reaction. and there are
indications that Liquidation IL still in
complete. In the public mind the de-
cline in securities is largely attrib-
uted to the recent attack upon corpo-
rations. Undoubtedly these have had
a disturbing effect, but they are by no
means the only or even the chief
cause. AS has been persistently point
ed out, the main reason for reaction
in the stock exchange is the exceed
ingly unsatisfactory condition of the
money market resulting from gen.
eral OVERRIDING. Bank reserves are low
and without liquidation there will be
no chance for replenishment before
crop moving demands begin. These
have been delayed somewhat by back
wardness of the growing season, but
they must soon be faced. 1t is I'M
fortunate that these demands prom
Use to assert themselves at a time
when financial reserves are low and
when the demands of the general busi-
ness will be very pressing. Tt is doub-
ly unfortunate that such demands
should come at a. time of unusual
strain in the security markets; for
the latter are in an exceedingly sensf-
tive condition and likely to be the first
to yield to monetary pressure.
Business Active in West.
If all accounts are true, there is
likely to be brisk demand for funds
this fall. General business in the
west is still very active, and with
prices at their present high level the
efficiency of money is naturally d.
minished. Relief must come from
somewhere, and will be obtained most
readily by pressure on the point of
greatest weakness, which is at present
in Wall street Credits are still over
extended and in some quarters there
has been more or less over-trading.
Our supply of capital is exhausted,
and in consequence new enterprises
y
has had an opportunity of replenish-
ing it's supply of capital. The reserves
of the New York banks a week ago
stood at 100000, against $4,000
600 last year, $12O00,O00 the year be-
fore and $50. 900, 900 in 1904.
The western bank reserves are also
lower than usual, but this Is partly
explained by the fact that they are
large holders of commercial paper
which will shortly mature and pro-
vide them with means for moving the
crops. Nevertheless the burden OF
the latter is also felt directly or in
directly at this center. How New
York is going to stand any particular
drain from the interior remains to be
seen. The situation abroad is not IA
vorable to our obtaining any assist
ance there. The European markets
have strains and troubles of their own,
besides which they are less disposed
than formerly to give us financial aid,
owing in part to recent developments
in corporation affairs. The treasury is
in a good position for affordipe assist
ance, and considerable help may be
expected from this quarter.
Cheerful Outlook Ahead.
Outside of Wall street conditions
are generally satisfactory. 1t now
looks as if we should have a good
corn crop, probably the third in size
in our history, if weather conditions
4 a ~
crop has made very rapid recovery
during the past two months and now
gives fair promise of an abundant
yield, provided it escapes early frost
The condition of spring wheat is poor,
but the winter wheat harvest has
turned out better than expected, and
some reliable crop authorities are
looking for yield possibly as high
as 650,O0O,000 bushels. For corn the
outlook is 1900, 000,0 900.
Throughout the west business con-
tinues on an active scale. There has
been no recession of consequence IN
sales of goods going into consump-
ton. The masses are prosperous and
spending freely. Our farming classes
are richer than ever in their history
and better able than ever to withstand
any agricultural setback. Fortunate
ly there is no prospect of the latter
at this writing. The only sign of re-
cession in any direction is that re-
ferred to above, the stoppage OF new
business enterprises imposed by the
limitations OF the money market. The
bankers in all parts of the country are
becoming exceedingly conservative
and are effectively applying the brakes
part of the country can any pessimisn
be discovered corresponding to thai
which exists on Manhattan island
south of Fulton street. That seems
to be the bluest spot on earth just
now. Many of our great corporation
leaders are much disturbed and dis
pleased at the recent activity Of gov.
/ ga loIS l,Ss