The Kendrick gazette. [volume] (Kendrick, Idaho) 1892-1968, 1907-08-30
REPORT
ISALLO.K.
CROPS ARE GOOD AND
BUSINESS is SOUND.
COMMERCIAL NATIONAL BANK
or CHICAGO SETS AT REST
DOUBTS OF THE TiMID.

T.
Commercial National bank, one Of the
most careful and at the same time
one of the most powerful financial
institutions of Chicago. The report
is made up from replies to several
thousand letters of inquiry sent out
to correspondents and others, and
represents opinions of bankers, bust
ness men and crop authorities in the
west and southwest:
1--WE endeavor in this summary to
present to the public an answer to
the question which all men are ask |
ing: Is the business situation sound
and the outlook assuring?' This an
swer is drawn from composite pic
ture of conditions as graphically de-
scribed in letters from thousands Of
banking, manufacturing and merchan-
dizing correspondents throughout the
country. Not far from 10000 separate
replies enter into the picture before
us and the definiteness Of the image
is remarkable. There is no vagueness
or blurring about it. 1t is clearcut
and incisive.
1.-THE overwhelming preponderance
of evidence is that the business sit
uation is sound and satisfactory. Not
one of the thousands of replies mega
tives this conclusion in de-
finite terms. That there has
been a marked easing down from the
tension of the spring and winter
months of the year is generally ad-
mitted, but it is admitted without a
trace of regret or misgiving. The
country had been rushing ahead at
whirlwind pace until the tax on credit
and capital accumulations compelled
a respite. The demand for goods to
meet instant needs, or to replace
other goods destroyed by wars and
calamities, or to provide for the GER
tain needs of the future, has been un-
precedented.
"To meet this it has been necessary
for the manufacturers and distribu-
tive agencies of the entire world to
employ almost every available unit
of money and to put into action every
potentially of credit. The result is
too familiar to all men of affairs to
need exposition. The strain on the
money centers of the world has been
very great. In ordinary times the
stringency of one country is Offset or
relieved by the plethora of another,
through the commonplace of the
mechanism of exchange. But it has
been different since the peace OF
Portsmouth. There is no easy money
IN the civilized world today.
''To suggest an idea of the urgency
|, of the demand for capital to expand
|, and equip the productive capacity OF
. industry so that it may be on par
with the fast-increasing consumptive
we call attention to the world phe
/ nomenon of stagnation in the purely
speculative department of affairs. Re
Gently we have seen record low price
for the British consolidated debt
l 'ccnsols'-indicating that the rewards
/ of capital in industry are so attrac
3 tive as to prompt withdrawal of funds
3 even from the acknowledged chief o.
5 Investment securities The same phe
nomenon in its application to the fund
e ed loan of all governments except oul
/ own-and for this there is specia
s and artificial reason-and in it's appli
l. cation to the bonds and shares of thu
r exchanges, is further light on tn
/. tension which is everywhere felt il
l. money affairs.
r at is a curious and striking fac
n that in all the thousands of reptile
l. which enter into the picture of tn
l. business situation before us there i
hardly a reference to the speculative
lethargye which contributes so larg
a part of the news from day to day
And yet it is truism that the secul
, ity markets exist merely as governor
"A of the supply of mobile capital. @
- necessity their activity must declin
X when economic forces drain from thei
N stocks of stagnant capital. When tn
70 mobile capital of the world is needle
"a In productive enterprise or in distribl
tive service it must necessarily d.
sert the stock exchange, and ineyit'
Y. bly, wane before the necessities an
% overlapping Importance of industris
~ activity.
20 ''The bankers of the country, wit
lew cACcpllOuS III lut ldT W0Sl, TtpOl
"a an extraordinary demand for funds
81 all lines of business activity. Int
~ est rates are very firm everywher
10 and in the central reserve and large
reserve cities the inquiry for funds s
G. much exceeds the supply that none
90 is described as very tight
80 Business is generally reported
20 be good in volume, making an exec
90 ton for the great hesitancy in Il
90 metal markets, especially in copp'
On and the alloy metals. Voluntary co
cessions in the prices of these m
terials have made buyers wary, al
they are generally waiting in the hol
ell of further forced declines.
le- 'The high cost of materials and
In Dor, and especially certain inefficie
cy of labor, are noted by some Of o.
ng informants as unfavorable factors
We the situation.
It's Turning to the crop situation, on
the broadcast congratulations are jus
ar fed The grasses, which form L
nd primary sustenance of our animal pc
re ulation, are an unusually rich ere