The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-18

firner last week. and there was an un-
questionable Improvement in that shifting
and uncertain thing known as speculative
sentiment While there were no extremely
important developments in the market
one way or the other, the general run Of
happenings was in favor Of values.
chief among them being. perhaps. a per-
cepuble growth in the demand for bonds.
This was clearly enough shown in the
announcement of the sale on Friday of
S29,000,oJ0 worth of the per cent. fifteen
year debenture bonds of the New York.
New Haven and Hartford Railroad Com
pany exclusively 10 French and German
investors.
a sort OF background also to the more
cheerful feeling that was plainly in evi-
dence was q vague but nevertheless strong
impression that pessimism regarding the
financial situation had been very consid-
erably oyerdonc. People found themselves
asking each other about a fortnight ago
just why they were selling stocks; and an
analysis OF these reasons and some littlc
careful taking Of thought regarding The
low levels to which prices Of stocks had
fallen and the positive fact that at the
range of prices thus brought about, there
was no longer any particular disparity
between interest return upon these secu-
rites and the rate for the use of money
on call and on time, proved to have en-
couraging results.
business Continues Booming.
For one thing. general qualification was
expressed. and particularly in high fin
ancial quarters, over the splendid way in
which business throughout the country
was keeping mp. This pleasure was, it is
true, something in the nature OF para
doN, for our great bankers have been tell
ing ne that what we really need at the
present time is more of a letting up in
business than an Increase in it, What
these authorities have in mind is, pre-
sumahly. that it would be well if there
WAS moderation Of that excessive activity
in certain lines Of business that has been
noted for one o. TWO years back, such, for
instance, as la the speculation in real
estate, in plans for building construction
and, perhaps. in certain classes of railway
expenditures. and in expressing pleasure
over the abatement I'm the OUTLAWS of
money that is visibly taking place 81
these directions, they mean that such
curtailment Of expenditures is going on
without proving 10 be a deterrent factor
in the business OF the country as a whole
General business IS certainly running on
in an astonishing manner The great ma
Jority of all the manufacturing establish
ments which ARE asked Tor a statement
OF conditions reply that their orders lo-
goods are about double what they Wee
last year at this time. The decline ir
stock market has thus far at Ieas.
10 impair the general prosperity o.
country, and il is only natural that
izauOn Of this should begin TO bring oI.:.-
mism once more into the financial district
In the Northwestern section OF the
country all business this winter has been
checked TO "A greater or less extent by
the snOwstorHs and cold weather, and
this is beginning 10 show in railroad
earnings; and 1t appears that business
throughout the West as a whole is ham
pered by the congestion of freight traffic
upon the Eastern as well as uDon the
Western railway lines. Every one knows
however. that in the spring months the
traffic that is thus held up viii move rs
usual, and that the net earnings of the
railways and other enterprises interested
viii be benefited accordingly Meantime
it is admitted that this inability to get
grain quickly TO market has interfered
with our export trade IN agricultural
products
Falling on in Exports.
There was falling of in our foreign
shipments Of wheat and corn Of over ST.
100000 during the month of January: but,
on the other hand, there was a huge gain
in this month. of nearly S31.O0000 in our
exports Of cotton. so that for the month
in its entirety the record of our exports
Of these commodities increased roundly
over the enormous total shown IN the year
preceding.
Il has been obviously, a great year for
our cotton planters. II now seems that
the years cotton crop is likely TO be rs
great as l3.000o00 bales. or 1.500,00O larger
than was commonly estimated after the
adverse weather conditions met with 10y
the crop in September and October last
year: and this great crop has been rushed
10 market quicker than ever before known
and has been sold thus far at an average
price OF not far from 10 - cents q pound
W hat help this has given 20 our export
trade can be realized AZ "A glance. and
there IS again presented for considei.t-
ton the probable true state oc our l0e-icn
trade balance 20 this time
All the evidence as Il comes TO hand is
cCTroburatins in the strongest wav the
statement that our leading bankers have
been making for months past that despite
the assertions E3ade in the newspapers as
10 the large amount of our foreign in
debtedness. and particularly ia the cable
reports OF the opinions entertained on the
subject ia foreign financial circles. our
debit balance abroad was immensely ex-
aggeroted. II is becoming 70 be more
and more "A disputed question whether
she maintenance by the Bank of England
of per cent discount rate. accom-
panied with the steady continuance in
this market OF price for sterling ex-
change, well below the point ut which
sold can be imported. Is an indication Of
English strength OF weakness in financial
matters.
England Less Important Factor.
The old odage may still be true that
when the Old Lady of Threadneedle
Stree; takes snuff the whole world must
snecze. but IL is becoming pretty ap-
parent that a larger pinch of SNUFF than
ever before known is required to produce
the sneeze. In the seven months of the
fiscal year to date VIC have exported
over $600o00.000 worth OF products Of our
farms. and to the credits thus created.
mostly. of course. in Europe. must be
added those proceeding from the sales
of manufactures. The net balance of
trade in our favor for the year viii prob
ably be, indeed. not far from these
same figures Is it possible that this has
ali been turned against us by the borrow
ing Of our capitalists and spectators:
Il may be too early 10 dogmatize on
the matter but It begins very much to
look as if the gold Imports as they ARE