The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-05-10
CROP OUTLOOK is
GROWING BRIGHT
Opinion OF Henry Clews in
Weekly Letter.
Famous Banker Continues in Optim'
istic Mood, Regarding Financial
Conditions.
MONEY MARKET AND STOCKS.

New York, May 10. Especial y
During the past few weeks the stock
market has undergone a considerable
ladvance. Some stocks are too high
lin view OF their small returns to in
lvestors, while others are relatively
low. having been neglected by both
Investment and speculative buyers.
AS result We are likely to see more
or less of the evening-up process in
which medium grade investments,
Especially the better class Of pre-
ferred industrials, may receive in
creased attention.
The Industrial and commercial out
look continues satisfactory. In the
steel trade activity has been espe-
lcially noticeable. April proving a ban
,ner month for the receipt Of orders.
Building operations are particularly
active in all OF the large cities, and
this factor In connection with de-
mands from the railroads for struc-
tural material constitutes the chief
reason for improvement in iron and
steel. Our railroads. II must be re-
membered. have been pursuing a
policy of rigid economy ever since
the panic; and, now that earnings
are improving and the money market
is easy, conditions favor 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 materials for some
time to come. which viii certainly be
an important elemsnt in business re-
'covery. Bank clearings are already
lamp'e proof Of the latter; returns for
the first week in MAY showing an
increase OF over Ia per cent and these
gains being well distributed over all
sections of the country. Railroad
earnings also show encouraging re-
suits. aud the reports on forty-one
roads for the third week in April
showed a gain OF nearly 10 per cent
over last year. Still another evidence
of business improvement Is the dimin-
ishing number OF failures; the total
of which in April were only $50,
compared with 1900 In the same
month of 1908. the volume of liablh-
ties for the same periods being st6.-
100000 and s2o,o0GOOO respect
lively.
Crop Outlook.
Our crop outlook though not en-
tirely satisfactory is distinctly more
assuring than a month ago. The sea-
SON Is backward owing 10 the 1preva-
lence OF cold weather, but with the
approach of higher temperatures con-
siderable Improvement may be-looked
for. There is as yet nothing disturb
ing in the agricultural outlook. ex-
eepting the damage TO winter wheat,
which has been amply discounted;
and as prices for farm products are
still very high and likely to remain
so for another crop year prospects
favor another season of prosperity to
the agricultural classes who form so
important a constituency in our pop
ulation. Wall street was pleased by
the supreme court decision on the
commodity clause: not so much from
the fact that IL favored certain cor
porations as that II imposed an i'm
portant check upon the radical and
socialistic attacks on capital. The
courts are more firmly established
than ever on the principle that prop
erty shall not be taken away from
owners thereof without. due process
of law, and that ALI attempts at con-
fscatory action shall be prevented.
AS this Is one OF a series. of decisions,
which while tending to discourage the
abuses of capital have stoutly defend
ed property rights, It's effect upon
financial sentiment is important and
sound
Money Market.
The money market continues TO
show exceptional ease, loanable funds
stu being superabundant. As the
crop demands are four months dis
tant and business Is not likely tol
show any great increase OF activity
until after midsummer, there is little
immediate prospect of larger de-
mands for accommodation from these
sources. On the other hand. there
are conditions arising which suggest
the possibility Of somewhat frmer
rates ere long, or at least that pres
ent abnormally low rates cannot con-
t.nue indefinitely Bank loans at
New York have risen TO the huge
amount of 100000. 600, which Is
close to the highest on record Our
surplus reserve meanwhile is down to
about $1O.000.OOO, having steadily
contracted as loans expanded. We
have also TO face the possibility OF
further gold exports because our mer-
chandise shipments are small, while
importations Of various materials
continEe unusually heavy. IL has
been supposed that these large i'm
ports were entirely due to better
business conditions. This is only
true: a considerable portion of the
large importations being due TO the
effort 20 anticipate tariff changes.