Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-08-08

stances have been adverse to improve
ment in the stock market, and tone
of hesitancy prevails which Is sugges-
tive of underlying weahiess rather
than strength. The greatest cause of
encouragement was the statement that
new orders of the United States Steel
corporation had fallen off % per cent
during the past month. This an
nouncement was received with perhaps
more seriousness than It deserved, in
asmuch as it emphasized the fact that
the reaction which has been expert
enced in Wall street is slowly but
surely making itself felt in business
circles. The larger proportion of the
decline in steel orders was due to cur
tailment by the railroads made neces-
sary through the difficulty of obtain
ing funds in the money market.
1t has all along been held in these
advices that the practical exhaustion
of floating capital would enforce re-
trenchment in new enterprises, en-
largements and improvements. Such
retrenchment is now being enforced,
and this policy will no doubt be con-
tinued for some time to come. AS the
railroads are the largest consumers of
iron and steel, any postponement of
OUTLAWS on their part is sure to be
quickly felt in the steel trade. When
monetary conditions improve, the rail-
roads will be enabled to more freely
carry out existing plans, but during the
interval a period of slowing down
must be anticipated There has also
been diminished activity in the build
ing trades in certain cities, and this
too exerts it's effect upon steel Other
products are also beginning to feel this
abatement in the demand. There has
been a smaller inquiry for cooper; the
price has dropped to 80 cents, and a
great many orders are held back
awaiting a decline to about Is cents, a
figure that would still net very hand
some returns to copper producers.
Readjustment Is Beginning.
This weakening in the prices of conn
modities. which have really been SELL
ing unduly high, is a welcome sign II
reimbursement which began seven
months ago in the stock market is now
beginning in commodities; the latter
being on such high pinnacle as to
cause a general feeling of instability.
A moderate decline in this quarter to
lower level, while it might lessen
profits, would only bring them to a
more normal and safer level besides
which many enterprises and orders
now held in suspense on this account
will be forthcoming when commodities
have also come down to a safer and
more normal basis. OF course this
process of readjustment is unpleasant,
and to some it will be very inconveni-
emit: but 1t must come, nevertheless.
and the quicker the situation is fully
recognized the more easy will be the
transition.
There is no gainsaying the fact that
while business continues in hip
state of activity, there is still a con-
siderable degree of distrust induced by
present abnormal conditions; and>> it
is really healthy symptom that the
reaction has begun, especially as it is
making its appearance gradually and
! without violent or unexpected develop
ments. In nearly all lines of business
there is more or less expectation that
/ temporary reaction is at hand; the
| only important exception being in the
cotton goods trade, where demand is
still ahead of the supply and indica-
! tions are for another excellent season.
OF course New York is less optimistic
| than the West. This is always true,
because New York is the first to feel
downward movements and being a
financial center of the country. is nat
urally the first to apprehend points of
weakness and strength. The best fea-
ture in the whole situation is the
splendid progress Of the corn crop dur
ing the past three weeks.
Crop Full Average Yield.
Ideal weather has existed in nearly
all sections of the corn belt. and while
the crop will be less than last years
bumper yield, the prospects now are
for full average yield, provided we
are favored with good weather during
August The crop is stiIl late and In
6appar nf aarlx, frost hnt much ia.