The San Francisco call., 1908-03-22
CONDITION OF TRADE IN GENERAL
Cheerful Resume of the Situation by
New York Authority

New YORK Authority
The New York circular of ]. S. Bache Co.
Liquidation has spent its force and very
large amount of securities have been bought and
put into strong boxes, and thus in the pos
session of people who actually own them. A
number OF these people are far seeing enough TO
that will surely come, and are holding their
property for long carry. When the large adj
vance actually comes this fact viii have much
to do with making the movement a speedily up
ward one. There is no question that confidence
is returning and that business conditions in
many directions are becoming better. The sur
plus of idle freight cars up to nearly 400, 900 at
the worst, is now less than perhaps three-quar-
ters OF that number. The production of pig iron
is increasing and copper is feeling the effects of
slight improvement in consumption. Railroad
earnings continue to show large decreases in
remarkable fact that these figures are after all
in excess of those of 1905 and the Great North
slight increase in net earnings over those Of a
year ago-though last years severe winter has
something to do with this. The question Of
wages is still unsettled, but railroads evil
IDENTITY reducing in some way their operating ex-
penses and will continue to do A nuttering
indication of the strike era is showing itself
and labor troubles may still have to be reckoned
with. The railroads gradually, however. i'm
proving the quality and efficiency of the labor
which they employ, and this Notwithstanding the
prejudice officially engendered by attempts to
thwart reductions.
FUTURE PROSPECTS
The money situation appears to be COM
pletely settled, the gradual withdrawal of gov
ernment deposits obviating excessive supply. The
prosperous condition of the farmers, continued in
spite of the panic. and possibly because of it,
IN that II has given him higher prices for his
produce, is notable factor In the situation
Farmers in the United States enjoying
era OF high record riches, and this furnishes in
itself one of the strong bulwnrks which fu
ture prosperity win rest. The larger industrial
concerns most Of them feeling the benefits of
an Increase In business, at least from the lowest
panic conditions, but this fact Of recovery is
perhaps too encouragingly considered because the
comparison is with period of almost complete
cessation. Looked at broadly, there is nothing to
hinder the steady return of business in great
volume except the unfavorable influences exerted
by politics. We have before the presidential
campaign, and until, at least, the nominations
are made, even Wall street itself cannot discount
the outcome; and both those who buy securities
10 keep for a long time and those who trade for
short periods have ever before them this cloud
of uncertainty. The crop prospects are fine, un-
derlying conditions sound, and as soon as we
have passed the season of nominations. and IL
then the outcome of the election can be fairly
predicated. and is favorable, all other conditions
will trend toward prosperity. In the meantime
hope and fear will alternate Money is evidently
pilins up in the hands of the people, and when
the era OF confidence comes will fow into securi-
ties at q rapid rate"