The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-04-28
Two Noticeable Factors Are lmprov-
ing Tendency In Business and Con-
tnued Ease of Money.

leaders, are satisfied that the corner
has been turned and are adjusting
themselves accordingly. 1t is true that
much business depression still exists.
The process of REIMBURSEMENT is incom-
plete, and much time will be required
before our various industries get back
to normal conditions. This is simply
history repeated; and after a series of
years of extravaganza and advancing
prices it is but reasonable to expect
period of greater economy and
shrinkage in commodity values. This,
however, would not act as an impedi-
ment, but rather as a stimulant to re-
neWeG activity. We have already seen
that readjustment in the cotton indus
try and in the steel industry has i'm
parted fresh life into these two most
important lines of business, much
larger volume of orders is now being
received for iron and steel goods, and
while the profit is probably small, it
is evident that the steel industry has
touched bottom.
The business situation has been
somewhat adversely affected by tariff
agitation for the past three months,
chandise having been placed upon a
hand to mouth basis. Neither jobbers
nor retailers cared to stock up be-
yond immediate requirements when
the conditions of buying were so un-
settled. AS a result stocks of goods
at both first and second hands have in
many cases become much depleted.
Meanwhile consumption has been go
ing on at much about the ordinary
rate Clothing and shoes are being
worn as usual, and there has oeen no
slack ening in the consumption of food,
except such as may have peen en-
forced by high prices. This situation
means that as soon as uncertainty is
removed considerable actiFity must
develop for the purpose of r2plenish-
ing exhausted supplies While there
fore. the tariff has lost much OF its
effect as disturber of business, no
real resumption of activity can be ex-
pected until the outcome of that ques-
ton is foreseen. Nobody now antici-
pates any important changes from ex
listing schedules, which is perhaps po-
litically unfortunate. as the tariff
question may loom UP again in dis
turbing form at some future date This
however, is a distant problem and has
nothing to do with the immediate flu
ture If, as it is hoped, the tariff be
settled before June l, we may expect
a further Improvement in general
trade; and should the next harvest
prove anything like satisfactory the
coming fall should witness a very de-
p G,,Ci Wit
Another important element in the bus
mess situation is the outlook for pro-
longed ease in money. This is quite as
important to the merchant and manu-
Facturer as to the Spectator. 1t enables
him to obtain the credit which he
needs on good terms, and to make
1lans extending into the future. In
fact, continued easy money is one OF
the best and most natural tonics
known for business recuperation.
The monetary situation continues
TO dominate the financial outlook. We
are no doubt in for a period of very
cheap money until the autumn crop
demands assert themselves. This stu
alton is world wide. 1t is, of course,
primarily due to the general inertia of
trade, and in that sense is not entire
ly satisfactory. 1t is, however as just
stated. the best and most natural res
torative known. OF course, this uni
versal ease in money is considerably
intensified by the abundant production
of gold Bank reserves at home and
abroad are constantly rising. The
New York banks are carrying about
100000 more of cash in their re-
serves than year ago: and in addi-
ton our trust companies have mate
rally added to their reserves in com
pliance with the new law. The great
banks of Europe hold fully 100000,
900 more gold than at this time in
1908, the largest proportion of this in
crease going to the banks Of France
and Russia 1t is worthy of note also
that the Bank of England incre ased
its reserves fully $50.O00,000 during the
first three months of the current year.
The effects of such conditions must, Of
course, be highly stimulating to spec
ulation: they mean imitation, and this
accounts more than anything else for
the present high level of the stock
market. Our great bankers are sure to
take advantage of this situation to
carry out necessary f1otation and re-
funding plans Important negotiations
of this character have been under way
for some time past, and the absence
abroad of some of our leading bankers
is significant in this connection. 1t will
cause no surprise whatever if Europe
should take some very considerable
sums of better class American invest
ments during the next few months. If
this expectation is not realized, it will
probably necessitate sending further
large sums of gold to Europe to pay
for our continued large importations
Our exports of domestic products con-
tinue below the normal because of pre-
vaiiing high prices. The recent break
In wheat was beneficial in this respect,
but that staple is still held above
profitable export price. Now that costs
of manufacturing are being reduced
We ought to witness larger foraipn