Omaha daily bee., 1908-04-13
FINANCIAL OUTLOOK BETTER
Settlement Of Erie Affair Produces
Favorable Effect on Sentiment.
CROP OUTLOOK ENCOURAGING
Prospect OF Large Yield of wheat and
Improvement I'm Railway Reports
Are other Good Features
of situation.

NEW YORK, April 12.-Developments last
week were in favor Of values Of securities
and prices responded. but In a sluggish and
irregular fashion. Great interest centered
in the workout OF the Erie financial settle
ment and while underlying confidence was
general that the settlement would be ef
fected, the manner OF it's accomplishment
came as a surprise and afforded abundant
food for wide conjecture over the motives
and plans underlying the action followed
Il. II. Harriman's advance OF funds to
the Erie was not interesting in the light
Of his far-reaching interests i'm the railroad
systems Of the whole country and the pos
sible bearing of the Erie transaction on
the relations Of those two interests are
canvassed with keen interest. The fact Of
the recent completion Of a Hartman link
to the Atlantic seaboard In the south
through the Illinois Central and Central of
Georgia points the argument that control
Of the Erie is intended for another such
line to the seaboard. The present mixed
control Of the Erie IN community with
that Of other trunk lines and anthracite
carriers would make such a project Of
consequence to the balance Of power in
the whole railroad world. The object is
thus Invested with an Importance in the
estimation Of the financial public extending
far beyond the immediate affairs of the
Erie itself
Crop Outlook Encouraging.
The publication of the April 1 condition
Of winter wheat and rye crops by the De-
partment of Agriculture was markedly re-
assuring, owing to the high percentage OF
condition reported from the winter wheat
crop and the large crop indicated as the
basis of that condition. Weather reported
during the week caused renewal OF confi-
dence in the crop. Many chances of deteri-
Oration before maturity are fully recog-
nized but the vantage point Of the present
high promise against future unavoidable
contingencies is a substantial point in favor
Of keeping confidence in the outlook. The
years crop yields are looked upon as a
vital element in the Improvement of the
depression into which business has been
thrown and the course of the growth and
the harvest will be followed closely by
the speculative markets of its period.
Railroad Reports Hopeful.
No marked influence was perceptible in
the securities market from the side of bust
ness and traffic devices. Reports of rail-
road officials We're moderately hopeful in
tone, but they had little actual increase of
traffic to report and returns of earnings
still show heavy reductions from the corre-
spending periods of a year ago, as well as
for several years preceding. The price of
copper has declined again and accumula-
lion OF stock is complained OF. Orders for
steel stocks show recession from the level
of the early part of March and the iron
market is called stagnant Persistent ru-
mors of a cut in the price OF steel products
have elected protestations of the determi-
nation OF the allied interests in the trade
to maintain prices. Some disposition is
shown for cut Of prices as the best means
TO induce a revival of activity.
supply of Funds Large.
The Investment situation shows some
| signs of Improvement. Money remains diff
! ficult to place ir loans, despite prospects of
] United States treasury withdrawal of gold
! deposits from the banks and a possibility
| of some outgo of gold to France. In Lon
| don the heavy over-subscrlption to Lon
don county official loan is regarded as evil
| dence of the abundance of resources
available for investment. The Erie settle
| ment removes a repressive figure from the
! general investment situation. The bring
ing out OF the Mexican railroad merger.
with participation by influential bankers
and the determination of the marlborough
| Metropolitan 10 issue bonds instead of
] short term notes are significant OF confi-
dence in the investment prospect. The bond
division. OF the stock market continued dull