The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-07-10
BETTER STOCK CONDITIONS
Henry C|eWs Reports Stronger
Market Prevails

in the stock market have further i'm
proved. After a three months rest,
following three months of very severe
liquidation which eliminated in the
March panic. the market is now dis
playing considerable recuperative abil-
i;y. The thoroughness of liquidation
was admitted and all unfavorable in
fiuences having been thoroughly dis
counted, there was no reason for fur
Their depreciation. Confidence has been
gradually recovering for various rea-
sons; largely perhaps because of the
better understanding which is de-
velopng between corporations and the
people although that has always been
an element of depression small in COM
parison with the exhaustion of capital
which was the main factor. The tend
ency toward Improvement was obserV-
able two or three weeks ago: the
principal obstacle to the rise in stocks
being the unsatisfactory condition OF
the money market. Now that the July
disbursements have been safely passed
the outlook is somewhat better. These
funds have been released and large
amount of money previously locked up
is now available for investment or
other purposes. During the next two
months or until about September 1st,
there will be no unusual local de-
mands upon the money market and
currency should begin to flow from the
interior to this center. especially If
Ugh in crest rates continue. By this it
not meant that the money market is
n a satisfactory condition. On the
contrary. there are many elements in
the money situation which invite both
raution and criticism. Nevertheless,
The period of greatest strain has been
safely passed and for the next few
weeks the tendency ought to be to-
wards Improvement Renewed gold
shipments cause some uneasiness in
certain quarters. especially as the
precious metal is an important basis
Of credit. 1t should not be forgotten, !
however, that we can readily spare
considerable sums of gold without in |
furious effects here. We have a large
stock of gold in the country which has
been heavily augmented by importa-
lion FOR the last year or two, besides |
which we are a large producer of gold. !
There is really nothing threatening in
the foreign demand upon us for gold at |
this time. On the contrary. we will in
directly receive the benefit of allowing
n portion of our surplus to go where it !
is most needed for strengthening pur
poses.
One Of the best features in the situa- |
ton is the steady improvement in the |
crop outlook. We have now had three !
weeks of almost ideal crop weather.
which has done much to repair the in
jury caused by late and cold spring |
Harvesting of winter wheat has begun
in several states and the condition of
this crop is reported much improved
and the outlook is at least for a full
average crop. The chief complaint
comes from Kansas. where the dam
age, although exaggerated, is unques-
tiorahly serious. Corn has recovered
considerable of it's backwardness, but
is still from one to three weeks late. !
While the stand is small, condition is
generally good. and with a la+e frost
chances are in favor of a good yield.
Even cotton is rapidly making up for
lost time, and the prospects are much
better than month ago. 1t would
seem quite likely that condition is
better than a month ago. 1t would
seem quite likely that condition is bet
ter than the governments report of To- |
This was a rise of only l IL points in
the month. which seems exceedingly
small. in view of the splendid growing
weather during the pas three weeks. !
Suffice it to say, that the crop situa-
ton as a whole is much more encour- |
aging than a month ago. With favor
able weather during the remainder of
the growing season. it is fair to eX- |
pect good crops as a rule. On the other
hand, the situation is critical both as
to cotton and corn and early frosts
might cause serious injury.
Transactions on the stock exchange
this week have been somewhat re-
stricted by observation of the Inde- |
pendence holiday. The outlook how
ever. is for a more active market in
July than experienced in June The
low prices at which many stocks have
been selling. considering their divi
dend earning power. have induced some
of the market leaders to take more
optimistic and aggressive attitudes.
The rise which took place in some Of
the leading stocks during the last two
weeks received the sanction and sup
port of some of the strong interests in
the market. Some of the larger opera
tors We're evidently of the opinion
tat unfavorable conditions had been
well discounted and that the market
was entitled to a fair rally This, COM
bined with the conditions referred to
above, explains the recent strength of
the market in face of stringent money
rates. Before long several of the