The Washington herald., 1908-06-08

New IOrk June FROM certain pOintS
of view there were signs of Improvement
last week in business and financial mat
ters; from others not
Reports OF commercial failures over
the country as they came to hand from
the commercial agencies showed a les
sening tendency. Bank clearings ap-
peared to be moving toward an enlarge
meEt. even when due account was taken
or the special increase in the volume Of
business caused by the greater activ-
ity of stock exchange transactions in
New York The gold export movement
grew manifestly less. Gold still con-
tinued to be engaged for foreign ship
ment. but In much smaller amounts than
formerly. and the suficing reasons for
this were, first, the fact that the move
ment has already reached large proper
tions so that probably the larger share
of whatever floating foreign indebted
ness we have has been liquidated; and,
second. the decided let-dp in the demand
for money in the European financial cap
itals themselves. which has had the ef-
feet Of producing further declines in the
rates for discounts there.
Gold Hoards Above Normal.
The gold boards OF the Bank OF Eng
land and the Bank OF France are now.
like those OF our own, far above the nor
NAL and even in Germany, where affairs
have been more in state Of strain dur
ing the year than in any~other finan-
cial center. the Reichsbank reduced its
discount rate last week from TO "A per
cent Presumably Germany has not
wholly retired from the market for
money. inasmuch as credit In the coun-
try Is still extended, and careful man
agement will De required to keep finan-
cial matters In the country safe and
sound during the rest Of the year; but
Il seems altogether probable that from
now on. and Tor q very considerable
time in the future. foreign takings Of
gold from this side will be relatively
small. One hopeful influence In this re-
gard is that which has so many times
In recent years extended its powerful
and beneficent arm, the continued i'm
mense eptput OF the South African gold
mines The Rand gold production last
month was the largest for any month
but one on record. and the results OF this
/ steady flow Of gold day in and day out
/ from the Transvaal forms factor Of
great and permanent Importance in the
general financial world.
Railroads. Expense Less.
. The monthly statements Of railroad
earnings as they were given out early in
the week all exhibited a further and in
many cases an extraordinary decreas
in railway operating expenses. which in
some instances resulted in an actual in
crease in railway net revenues despite a
/ very large falling OF in gross receipts.
/ The railway companies, as has been so
/ frequently noted IN the last month. have
at least gotten their operating expenses
under control" A serious question is.
/ however whether such compression of
operating costs-unaCcompanied by any
reduction Of railway pay scheduleS-has
or has not been at the fundamental ex-
pense OF the properties concerned. II
would, al any rate. be not a little
/ interesting II there could be some reve-
| latiOn OF the details OF the way In which
/ the prodigiOus saving on so many lines
has seemingly been effected Right at the
/ beginning OF the week there appeared to
be a larger resumption OF business
through the New England manufacturing
section. although there was news Of the
curtailment Of production and OF reduced
wages in many parts of the same terri
/ tory.
Crop News Gratifying.
Bulletins from the agricultural districts
were in the main gratifying. and in some
cases decidedly so. The consensus seems
to be. regarding the outlook for the cotton
crop at present. that the prospect Is not
as bright as II was earlier in the year for
a bumper crop. The condition OF the
crop has unquestionably been lowered by
the storms and rainy weather OF the last
two months, and the feeling Of the best
people in the cotton trade Is that in the
long run this will prove to be a good
thing. since a very large crop OF cotton
this year. with the heavy stock carried
over from last year. and the reduced con-
sumption OF the article that seems alto
gether probable, might result In unpleas-
antly low prices for the staple.
/ The winter wheat prospect has also
been shaded a little by the heavy rains
but not so as 10 impair the crop in any
notable degree. The same cause has also
made the complaining time more or less
backward: and, OF course, If the rainy
weather should continue in force during
the winter wheat harvest II might do a
good deal of damage.
There seems TO be every likelihood
| however. Of an extraordinarily large
May crop, a staple whose immense eco
nomic importance 10 the country Wall
| street does not always realize, and moth
ing has happened in any way TO impair
the magnificent condition of the spring
/ wheat crop.
Bumper Crops In Northwest.
James ]. Hin. who as a rule is not
much of an optimist. says that never In
his experience were crops in the North
west promising such abundance as at the
present time.
Indeed, financial observers are forced
again 20 recur to the continuous way in
which nature seems 10 be readJusting in
favor of the farmers that balance which
she turned against them so strongly and
/ for so many years. Whatever distress
there has been in the country this year
from the financial panic has been thus
1 far visited almost exclusively upon the
Eastern part of the land.
The West has felt the trouble hard
| ly at all, and it does not now seem
likely that she will feel it. In most OF
the great national prostrations Of busi-
ness In our country before the West has
been the chief sufferer. because for va
riety OF reasons the things that the peO-
pie of the West had 10 sell were OF COM
paratively low value In the worlds mar
kets. Now conditions have so shaped
themselves that for every bushel Of grain
\ that the West has TO sell she gets high
price; and not only is this true but the
/ quantity Of grain that the West has to
| offer has been full