Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-08-01

Entered as second class matter
October II, 1908, at the postoffice. OF
:umwa, Iowa, under the Act Of Congress
ut March 8, 1879.
mr.. cLEWs SEES NEED OF READ
49, JUSTMENT.
The opinion that readjustment in
The commodity markets and Industrial
circles. reducing the high costs of
production and the high costs of living
such readjustment as has taken
place In the security markets-must
be endured before the country can
feel assured of the stability of the
Y present era of prosperity, is express
\ ed by Henry E. Clews in his weekly
financial review In expressing this
opinion Mr.. Clews does not hold that
any demand for such readjustment
has appeared on the surface, but. he
says, the believers in reaction are
steadily gaining in numbers and
I whether a reaction is simply being
postponed or not remains to be seen.
Discussing business conditions he
{ says:
Business conditions continue fairly
satisfactory Clearing house rturns
show moderate enlargement Of bust
7 ness over last year. clearings last
/ week showing an increase of per
hcent and the week before of per
cent over the previous year. Gains are
Fhe largest in the western and the
Pacific states. Agricultural sections
continue prosperous. owing to the
profitable prices, present and pros
pective. on nearly all farm products.
Labor is also generally we'll employed
at high rates Of wages. Business re-
quirements, however, are heavy. ow-
h ing to the prevailing activity and the
y high level Of values; the combined ef-
feet Of which Is to lessen the avail
4 able supply of funds. Large sums are
also still locked up in various syndi-
cate operations and are not likely to
be released until conditions favor a
wider distribution Of the securities
held against these loans. While the
early future may witness slightly
easier tone in money, firm rates are
promised for some months Very soon
crop demands will begin to assert
= themselves, and unless a greater re-
cess1on in business takes place than Is
now expected, there will be an active
demand for funds for the remainder
OF this year. These conditions are. of
course, against any prolonged or &C.
tive rise in stocks. It is true that our
railroads are still prosperous, enjoy
Ing large traffic at good rates; and
many shares are. in view of the rates
of the dividends paid, selling at very
attractive prices from the permanent
investors point Of view. For this rea-
son it seems justif1able to expect a
steady hardening of values, provided
no untoward development prevents. At
the same time, any attempt to force
the market too rapidly, or to foster
undue activity, would probably break
down or lessen any recovery because,
as already stated, of the limitations
of the money market.
The stock market also shows more
I strength, Mr.. Clews asserts, due to
tine convervatism in banking circles.
The curtailment of the issue Of secur-
tiles and the extension Of credit, he
holds will have to be maintained for
some time. Referring to the stock
market conditions, Mr. Clews says
firm tone prevailed in the alb
4 sence Of unfavorable news, and such
weakness as occurred at. intervals was
chiefly due to proft-taking. For some
time past the market has displayed a
firmer undertone, due to a gradual and
almost unobserved revival of conf
dence in financial circles This revi-
! wal has been SO general that it would
funquestionably have expressed itself
in still higher prices for securities
had 1t not been for the limitation of
the money market. Fortunately there
has been some abatement in the &C.
tivity Of state and federal authorities
against corporations, and in future
these attacks are less likely to be of a
aoonfiscatory nature than in the past.
Both Governor Hughes action on the
two-cent fare proposal and the temper.
ate tone of the Interstate Commerce
Commission on the Hartman investi.
cation have had distinctly reassur.
ing effect in financial circles. It would
be a mistake. however, to suppose
that all sorts of government activity
towards corporations is likely tc
tease On the contrary, it is almost
certain to continue, but probably upon
more conservative and less disturbing
lines. It is serious matter for the
government to exercise its power In
the direction of enforcing Improbable
rates. or in practical confscation, OF
by violent disruption through receiv
fsrs, or by stirring up popular preju
dice through vindictive investigations
& and prosecutions. It is quite another
thing to establish reasonable regula
tons governing and restraining great
corporations in a manner which shall
be equitable to both owners and the
public. The difference between the
two lines of DOlicy ia marked. ana il