The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-05-12
SOME HAVE GONE MUCH TOO
HIGH FOR RETURNS MADE
TO INVESTORS.
Industrial and Commercial Outlook
Continues Good According e
Henry Clews This Week.

view of their small returns to inves-
tors, while others are relatively low
having been neglected fly both in
vestment and speculative buyers. AS
a result we are likely to see more or
less of the evening-up process in
which medium grade investments, es-
pecially the better class of preferred
industrials, may receive increased at
| tention
The industrial and commercial out
| look continues satisfactory. In the
! steel trade activity has been especial
| ly noticeable. April proving a banner
! month for the receipt of orders Build
ing operations are particularly active
in all of the large cities, and this fac
tor in connection with demands from
| the railroads for structural material
constitutes the chief reason for i'm
provement in iron and steel. Our rail-
| Dads, it must be remembered, have
| been pursuing a policy of rigid econ
omy ever since the panic; and now
that earnings are improving and the
! money market is easy, conditions ia
vor not only the making of repairs
which have been delayed, but also the
carrying out of various improvements
and extensions which had previously
been deferred. In all probability the
railroads will be large buyers of ma
terials for some time to come, which
will certainly be an important ele-
ment in business recovery. Bank
clearings are already ample proof of
the latter; returns fCv the first week
in May showing an increase of over II
per cent and these gains being well
distributed over all sections of the
country. Railroad earnings also Snow
encouraging results, and the reports
on Al roads for the third week in
April showed q gain of nearly II per
cent fver last year Still another evil
dence of business Improvement is the
diminishing number of failures; the
total of which in April was only $50
compared with 1900 in the same montn
of 1908, the volume of liabilities for
the same periods being $4,000, 900 and
$20000,000 respectively.
Our crop outlook though not en-
tirely satisfactory is distinctly more
assuring than month ago. The sea-
son is backward owing to the preva-
lence of cold weather, but with the
approach of higher tempera lures con-
siderable Improvement may be looked
for. There is as yet nothing disturb
ing in the agricultural outlook, ex-
cepting the damage to winter wheat
which mas been amply discounted; and
as prices for farm products are still
very high and likely to remain so for
another crop year prospects favor an
other season of prosperity to the agri-
cultural classes who form so import
ant constituency in our populat ton.
Wall Htreet was pleased by the su-
preme court decision on the commodity
clause; not SO Aucn from the fact that
1T favored certain corporations as that
it imposed an important check upon
the radical and socialistic attacks on
capital. The courts are more firmly
established than ever on the principle
that property shall not be taken away
from owners thereof without due pro-
cess of law, and that all attempts at
cOnfiscatOry action shall be prevented
AS this is one of q series of DECISIONS
which, while tending to discourage the
abuses OF capital have steutly defend
ed property rights, it's effect upon
financial sentiment is important and
sound
The money market continues to
show exceptional ease loanable funds
still being superintendent. AS the
crop demands are four months dis
tant and business is not likely to show
any great increase of activity until
after midsummer, there is little i'm
mediate prospect of larger demands
for accommodation from these sources.
On the other hand, there are condi-
tons arising which suggest the posi-
bility of somewhat firmer rates ere
long, or at least that present abnorm
ally low rates cannot continue indefi
nitely. Bank loans at New York have
risen to the huge amount of $4,000,
coo, 900, which is close to the highest
on record. Our surplus reserve mean
while is down to about 100000, hav-
ing steadily contracted as loans eX-
banded. We have also to face the pos
sibility of further gold exports be-
cause our merchandise shipments are
small, while fmpOrtations Of various
materials continue unusually heavy. 1t
has been supposed that these large
imports were entirely due to better
business conditions. This is only part
ly true; a considerable portion of the
large importation being due to the eff
fort to anticipate tariff changes. Never
theless, our international balances are
in such condition as to render posi-
BILE a considerable further outflow of
gold This situation is emphasized by
the fact that the Canadian banks hold
very large balances in this market
placing them in a position to take our
gold whenever to their advantage. Yet
another fact which must be taken into
consideration is that several of our
large railroad systems will soon be in |
the market with new bond issues, the
present being a nexceptional opportun-
ity for such operations. Over 100000 /
900, new issues were announced in |
April, one-half of which probably rep