The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-03-07
:CleW'S Weekly Market Report:

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though the latter will be able to offer
more profitable Inducements At the
same time it would not be to the inter
est of either London or Paris to be too
obstinate in their refusal to grant as
sistance that may be needed.
If really necessary, we shall obtain
either credit or gold from Europe
perhaps both; for the reason that we
can offer good collateral, and refusal
would disturb matters abroad For
their own self-protection European
bankers will no doubt grant all ac-
cOmmOdatiOns that good American
fetal prejudices against American by
insisting upon profitable rates The
question of our getting European help.
therefore, will be entirely one of terms,
and fortunately America is able to
pay for such accommodation.
The situation at home continues more
favorable to skeptical than to Opti-
mistic views. The reaction in Wall
six months has not yet shown itself
to any extent in commercial or indus
very large in volume; and promises.
in the absence of unfavOrable devel-
opponents. and promises, in the absence
of unfavOrable developments, to con-
tinue SO for another year if we have
another good harvest. Many of our in
dustrial concerns are still pressed with
orders, the only complaints being those
of increased expenses and diminished
profits.
Such complaints are increasing and
must be regarded as significant, al
though at persent they have
not suggested any general re-
action in the volume of business
The Demand for all kinds of dis
tributing concerns are comparatively
a rule have all the business they can
properly handle. 1t is only at the east
ern cities that clearing house returns
show any declines. Throughout the
state clearing house returns continue
to show handsome gains even over
last year. One of the most suggestive
facts in the situation is the weakness
in pig iron. Our great steel companies
have all the business in sight which
they can take care of for months ahead,
but the disposition of the railroads to
retrench, as a result of the high rates
paid to secure new capital and the high
cost of materials, naturally exerts
depressing influence upon the future
Of this staple product
A feature that must not be lost sight
of is the rapid growth of railroad ex-
penditures due to increases in wages
and high cost of materials. During the
month of December SO railroads report
ed an increase in gross earnings OF
S11, 100000, all of which, except $780,
900, was consumed by increased eX-
penses. AS this comparison was MADE
before the recent advance in wages
by Pennsylvania and other railroads,
IL SeeIlS llhcly lIdl Tic It'll ci0NS -
net will soon entirely disappear and give
way to decreases. although we may
continue to see continued gains in gross
Even the latter, however, are declln-
ing, for in July, 1906, the gain was
nearly IA per cent over last year, III
August II per cent, in September
per cent, in October 10 per cent, III
per cent and in December
8 per cent; while in January it fell 10
3 per cent. This shows a tendency to-
wards smaller increases in gross ana
larger decreases in net. The result OIL
this tendency, if continued, will proDa-
bly, be anything but favorable to
of the large advances III
dividends which have been made dur
ing the last year or two, apparently
more for the purpose of faciiitatihs
borrowing operations than with the
dea of placing the stocks upon stable
basis of valuation. When first-class
shortterm notes can only be placed at
) and per cent for the next three
years, what are the chances of MAIN
aiming stocks at a per cent level, par
icularly when net earnings are threat
.ned, as they are, with serious shrink
lge?