Bisbee daily review., 1908-08-13
HENRY CLEWS
ON FINANCES
OF COUNTRY
Under the Influence of Easier
Money Business Conditions
Are improving-Panic Has
Been Left Far Behind Us.

NEW YORK, Aug. 1.-THE stock
nlssrKet mas been very strong and
more active. Under the influence of
Ieasy money, improving business pros
poets, good harvest and powerful
Inside support prices have climbed to
still higher level. The advance has
probably been more than conditions
really warranted; but as repeatedly
stated in these adyices the market is
in the control OF a combination of
unusually powerful operators. and it
is but natural that they use their
power to the utmost limit. Let us
briefly examine the influences up0a
which the rise has been based, for
the most skillful manipulation could
not have engineered a rise such as
has taken place since last November
uness there was some good founda-
( ton.
In the first place the panic is far
behind us. Prices then fell much be
low intrinsic values because of ex-
IRENE decentralization, and unless his
tory fails to repeats itself they are
likely to react above intrinsic values,
because the pendulum invariably
swings back violently before resuming
its normal movements 10 and fro.
, Now thsS the storm is over we find
the financial atmosphere much clar-
flied. While the shock of panic
caused temporary paralysis in bust
ness, recovery quickly followed. There
were no signs of general oyerproduc-
ton, such as prolonged the depression
which followed the panic of 1893; and
in many lines of merchandise there
was 2, positive scarcity, particularly
in agricultural products, which has
had much to do with maintaining the
present high cost of living The big
trade combinations have also had
share in preventing overproduction by
the rigorous shut downs which many
OF them enforced This scarcity of
products, or lessened production, can
hardly be considered blessing, for
abundance is usually better than scare
ity as a general principle but it has
had much to do with the steadying
of values during the past six months.
One good result arising from the pam
ic was the effectual stoppage which it
enforced upon unsOund industrial and
financial schemes. Our credit system
had been strained 10 the breaking
point by the flood of fiotatiors; and
this state of high tension was chiefly
responsible for the panic because of
inability TO withstand shock. This has
all been changed. New schemes
Iare promptly turned down unless par
ticularly meritorious; our bankers are
exceedingly conservative; weak con-
Germs have been obliged TO. hQuidate;
credit has been greatly Strengthened
and while good borrowers secure all
reasonable accommodations, bankers
are pursuing a policy of great care in
the granting of credit Another fac
tor of more Importance than is yet
appreciated is the great relief which
has been lately afforded to institu-
tons and individuals by the rise in
stocks. Il is well known that some
of these wouId nave been forced into
bankruptcy had it not been for the re-
cent favorable turn in events. As it
IS many concerns have been enabled
to meet their obligations with unex-
pected prOmptness; and il goes with
cut saving that their resumption or
saving from failure will be beneficial
to the financial community. In short
1.-THE housecleaning process which be-
gan last October has been thorough
and beneficial, disastrous as it may
have been in some quarters.
Signs Of improvement in the mer-
camille world are more apparent every
where. Stocks OF goods in jobbers
and retailers shelves are generally
light. Replenishment is necessary.
The promise Of good and profitable
crops means another year Of prosper