The morning journal-courier., 1908-07-08
GATES SCENTS PROSPERITY.
Two Banner Years Ahead. Says Cap
 italist, on for Europe.

New York July s,-John w. Gates sailed for Europe this morning Before leaving he said he was not interested in the courts or the stock market, and had not been for months past. "The stock market he remarked. 'has no attractions for me at the present tlme."
 He added, 'The business of the eoun- try received q very severe blow last October from which we could hardly expect q rapid recovery do not look for any pronounced business improve ment in the immediate future. About the latter part of thie year we may get the definite turn for the better, but the improvement will be gradual
 T do not look to see business back to normal conditions until the latter part of next year. l am of the opin- ion that 1910 and 1911 will be the ban ner years In steel as well as other lines of business for the United States. All previous high records In iron produc- ton will be dwarfed by the results in the years In question. The railroads cannot remain out of the market for any great length of time. Their equip- ment k wearing out day by day. and they will eventually be forced into the market as large buyers. Whether this will be this year or next year 1 can not say, but l do not look for any heavy buying until 1909.
 We have before us political uncer- tainties. You ask what effect tho olec- ton of Bryan would have on the bus- mess of the country His election, naturally. would give business n eev- ere jar, but do not believe he could do as much harm as some people be- lieve. We will have a republican sen- ate and perhaps a republican house, which will serve as an obstacle to rad ical legislation that might tend to un- dermine the country's business struc- ture. We can tell more definitely who is going to be the next president three months hence.
 Practically all the steel companies lare in excellent shape, and well able to bridge over the current depression. 1 The preceding prosperous years have made them strong in cash. Besides, large sums have been expended for in- lcreasing operating efficiency and add ing to production. As result the charge per ton .of steel produced is much less. which has contributed largely toward strengthening many of the steel companies. Tho panic is not without it's good features; 1t has taught many corporations the wisdom of economies. The result will be that they will proceed more cautiously ir the future, which will be source of benefit to the security holders.
 As to the stock market, l have moi
 been watching 1t very closely ant would not care to venture an opinion
 l am buying no stocks, neither am selling any. hold securities whicl
 might go up twenty points without in Iducing me to sell. Should they 2,
 down ten points I might take on |
 few more shares. Many good stock
 are selling far below their intrinei
 values, but I cannot say when the.
 will reach q level more in line wit
 their actual valuation. We are goin to have large crops this year. whic will help to restore business to norma
 conditions. In gauging the stock mar get outlook. the large buying of od
 lots over the last 12 months must no be lost sight of as a powerful facto lin determining the course of securi
 ties.
 There is plenty of room for steel ex : pansion. The industry is yet in its in fancy. Iii the present generation the re cent high figures of production wi : look small when compared with tn new high records that are yet to b made"