The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-08-18
Well Known New York Banker Writes
Of the Conditions In the Financial
World For Gate City
Readers.
BUSINESS ON ADVANCE
A Substantial and Wholesome Recov-
cry Has Taken Place and Pros
porous Conditions Are Now
Prevailing.

CondltlOnS IN the financial world
at the present time are told by Henry
Clews, the well known New York fl.
nancier, in the following letter to The
Gate City:
NEW YORK, Aug. 14-Conditions
In Wall street are altogether extraor-
binary On every hand there are signs
of recuperation and business is rap.
idly recovering ground lost after the
panic Improvement in Industry and
in trade is now being followed by a
good harvest, and the nations cup of
the brim. This does not mean that we
have regained the activity and profits
OF the boom year: they are still re-
mote; but 1t does mean that a very
substantial and wholesome recovery
has already taken place which prom
ises to continue for some time to
come.
The controlling factor outside of the
stock market is the crop outlook. This
Is exceedingly encouraging. In spite
OF the fact that July and August are
usually months of deterioration, the
prospects are for large crops of corn,
wheat and oats. Corn and oats prom.
Use record-breaking yields, and wheat
is threshing out very much better
than anticipated month ago, and 1t
is quite possible that we may shortly
garner next to the largest wheat crop
the country has ever raised All fears
of bread famine have consequently
disappeared and there will be no
shortage of wheat in this part of the
world. The price has dropped to about
last years level and indications are
that we shall have fair amount to
spare for export Since the worlds
| supply of what Is much reduced, not
having kept pace with population, we
are certain of good prices for our sur
| plus; a fact of much consequence in
/ the restoration of our diminished ex-
port trade. Cotton appears to be re-
covering somewhat from July injuries
/ and in view of the short-time move
ments in European mills and the lar
ger European visible supply, it does
not look as If there would be any ser
ious shortage in the supply The sit
uation. however. favors good prices
| for cotton, which will benefit the
south and also help to swell the value
of our exports AS cotton is an i'm
portant factor IN the supply of foreign
exchange bills. ample offerings of con-
ton and grain bills would be useful
later on in restraining gold exports.
The money market shows firmer
tendency for both call and time rates.
4 Crop demands are now beginning to
assert themselves and western balan-
ces in New York will be gradually
withdrawn for that purpose. In the
end the financing of the crops alwavs
falls upon this market much as the
interior prides itself upon It's grow
Ing financial strength, and we must
be prepared to anticipate declining
bank reserves. The surplus has al
ready been much reduced, and the
bulk of what remains is held by one or
two large Institutions Both Canada
two large institutions Both Canada and
ances In this market for some time
past, and these funds are also likely
to be withdrawn with more or less
freedom: so that II would cause no
surprise il further gold exports were
to be incurred at time when funds
will be required for the regular cron
and business demands. Much Will
depend upon our export trade and the
International movement OF securities.
Money is still very abundant and
there is no immediate prospect OF
any particular scarcity or stringency.
The present movement In stocks
bears all the ear-marks Of very bold
and hazardous speculation. During
and after the panic many rich men
bought stocks very freely. withdraw
ing funds from ordinary business
channels for this particular purpose.
Extraordinary profits have been made
upon such Investments: and row that
more profitable emtlovmet can he
found for such capital either In regular
business or in new enterprises. il Is
folly 10 suppose that the owners will
not take advantage OF an unusual sit.
uation by turning their profits into
cash. History shows that under con
ditions such as exist today money be
gins 10 leave stocks and seeks other
/ directions where 1t IS more needed
and which are more profitable Our
biz bankers and rich men see plenty
OF opportunities ahead where they can
4 secure better returns than they are
now getting on the capital invested In
+ surplus stocks which they are now
carving Common business sense
would induce them to realize under
these conditions. and there Is no
( doubt that dufet inside selling has
/ been going on much more freely than
+ Is generally anticipated. 1t will be
( argued that the encouraging business
outlook. the great imnrovement al.