The San Francisco call., 1908-10-09
MONEY, TRADE AND RAILROADS
current Conditions and Prospects I'm
These Three Lines

The New York circular of Henry Clews says:
excessively high; If on the other hand money
hardens to any considerable extent security
values would of course be adversely affected
money market OF late there has been some
hardening OF rates, owing to demands of the
1aIeelot TOT crop moving purposes 1t should be
rememoered tnat our crops of wheat and corn
are larger than last year, and that the high
prices OF all agricultural products necessitste
the employment of more money in their market
ing. There is also prospect of good business
throughout the great grain belt where the
panic has fortunately been but slightly felt. In
west, northwest and Pacific states therefore,
there should be good demand for money during
the next three months at least In the south
the situation Is somewhat different The outlook
is for fair cotton CROP say 13 600 600 bales
but the price is 20 per cent lower than year
ago. and the chances are that demands on the
banks FOR crop moving purposes will be less
has felt the panic more than the west; her cot
ton mills much depressed and with q
lessened consumptiye demand for her chief staple
the south can hardly be expected to be as op-
timistic as the more fortunate farmers of the
west.
DULLNEss IN THE EAST
''It is the east, however. which has felt and
still feels the panic with greatest severity. In
this section Industrial interests vastly more
important than the agricultural, and these
have been intimately affected by the panic 1t is
natural that depression should be greatest on
this side Of the Alleghenies The continued
comparative inactivity of business in the eastern
cities OF course materially lessons the mercan-
tile demand for money. Funds have consequent
" accumulated to unusual degree; and,
there being efficient means of contraction
iR'our currency system, idle money has gone into
speculation and produced a degree of more or
less unwelcome imitation. The late drop of 5
to 20 points in the active stocks somewhat
minimized this danger but the latter will al
ways remain as long there is excessive
surplus of idle funds. After the election there
should be some improvement in business which
would serve to create better demand for
money, and IL speculation revves that too will
have to be taken into account. All things con-
sidered. therefore, 1t looks as II the lowest
while cheap money may be expected for some
time to come, the tendency will be rather
toward firmer rates
RAILROAD OUTLOOK
$50 long ma terial change takes place
in the money market and present dividend rates
maintained many stocks viii not look dear
at any recession from their present price. AS
TO the chances Of aintaining dividends the
outlook is not entirely satisfactory. A few
reductions have taken place and a few others
may follow. Thus far the railroads by means Of
in dividends; but such economies have been
pushed to the limit by deferring repairs and
outlays that must now be met, and unless rev.
begins to increase dividends must be fur
ther cut. Fortunately, however. the outlook in
this respect is steadily improving Losses in
earnings steadily declining, and net results
often prove better than expected. Five months
ago 413,000 cars were idle, or nearly 20 per
cent of the whole. Today less than Ia, 900 cars,
or per cent, are idle, and after election this
percentage will be still further reduced ire
spective of who is elected. The railroad out
look, consequently, is steadily improving, es-
pecislly in the west"