Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-07-25

u AAA@AACt uuTIIlB the past week. I'M
was largely due to the exceptions
strength of Union Pacific, which in tur
was attributed to manipulation in
tended to facilitate financing of tn
Union Pacific loan.
Tine temperate tone of the report of tn
interstate commerce commission o.
me Hartman investigation also tend
ed to restore confidence, inasmuch a
1t showed no disposition on the part O
the government to prosecute or be un
duly severe on Mr.. Hartman. Tn
balance OF the market sympathizet
more or less with the rise in Unior
Pacific. and a fair recovery has nov
s succeeded previous low prices. The
general situation was also improved b,
the good crop reports and by slightly
easier rates on time money. From the
agricultural districts reports are very
encouraging, and 1t is quite plain that
we will have larger yields Of corn, cot
ton and wheat than expected a month
ago. There is nothing now to prevent
average crops in general except their
late condition and early frosts; and
since there should be a good demand
Tor all agricultural products at profita-
Die prices. our farmers, who are gen.
orally considered the backbone of the
country, seem destined to enjoy an
other season of prosperity. This fact
has no doubt had much to do with in
ducfng a better feeling abroad re-
specting American securities. 1t is not
200 much to say that London is much
less pessimistic regarding the future
OF our stock market than New York.
Demand for New Securities.
The chief trouble with our own sit
uation is still in the money market.
The supply of floating capital has
practically been exhausted by the tre-
mendous over-issue of new securities,
estimated In the first six months to
have been about $1,000, 0O0, 900, includ-
ing conversion and refunding opera
ions. y
When the large volume of business
considered and the high level OF val
les on which business is conducted, it
easy to understand the tremendous
train on credit and upon our mone-
AIRY resources. The natural correc-
Ion for such tension is a period of
est. permitting the accumulation |
rom national savings of a fresh sup
ply of floating capital What with the |
resent demands of large corporations, |
he activity of general business and the |
approaching crop demands, it is evil
lent that there will be a pressing in
utry for money during the remainder
: the year, If not well in 1908. Our
sank reserves seriously need replen-
shing during the next six weeks in |
rider to provide for autumnal de- |
lands. In this connection 1t is encour-
ging to note that we are in a position
secure temporary accommodation
broad. We are already borrowing
iore freely in the London market,
robably in anticipation of large for
Ign purchases of our wheat and cot
IN; yet It Is to be noted that London
ankers are exercising great discre-
on In regard to borrowers.
SpeculatIons Are Limited.
The situation is one which certainly
lows gradual Improvement. Correc-
We influences are actively at work,
nd ahould not be interrupted; for
ally through their rigid application
~ It been possible to avoid a serious
isis. The security market has al
sady had a severe shrinkage, quite
afficient, 1t is to be hoped, to coun-
ract all unfavorable features. Be-
ond question many good securities
re selling below intrinsic values, and
re simply held down by abnormal
3nditions In the money market. AS
Don as the latter promise to disap~
ear we may look for a gradual hard.
ming in values, owing to the quiet alb
orption of such securities by shrewd |
lvestors who will quietly pick up the
/ etter class of investments and trans
n them into strong boxes for perma- |
ent keeping. 1t is quite evident, how /,
yer, that there is no room for extern |
We speculative operations, because of
ne serious limitations of the Ameri-
an money market, The rise in Union |
acific was almost entirely manipula-
We and was not participated in by
ne general public, which Is still prac-
! cally out of the market.
Commodity Prices Too High.
! There is one division of business in
I hich readjustment is still incomplete;
- fact, has scarcely begun. Com
/ lodity prices are still very high; too
/, Ugh. indeed, to permit of any extern
We plans extending into the future.
Upper is still selling in the neighbor-
/ God of 22c. The average cost of pro-
! uction is placed at 10c, some pro-
4 ucers, of course, turning out copper at
much lower price than this. Conse-
uently the margin of profit is large.
j nd there is ample room for recession.
Their metals have recently shown a
) sclining tendency. There is no doubt
lat a moderate recession in the cost
~ staple products would be highly
f-anafcial and aid in RESTORING the oap-