The Washington times., 1910-05-07
MARKET CONDITIONS
ARE MUCH BETTER
Placing OF, Bonds Abroad
and Lower Prices Make
Outlook Encouraging.

"A decided reaction developed on We'd
Hesday from the pessimistic temper
which had dominated the market for
several weeks This recovery" says
Henry Claws in his weekly letter, was
based upon the rumorec successful
negotiations Tor placing important
American bond issues abroad, and may
have been accelerated by the covering
Of a too extended short interest Such
a practical display OF European con-
fidence in our securities could not but
have n stimulating effect; inasmuch as
It at once lifted a heavy load OF doubt
from those responsible for the financ-
ing Of our large railroad enterprises.
and paved the way for renewed activity
Just what these European taElngs Ul
our new railroad bonds VIII amount 70
Is not vet disclosed. but they are known
estimates reaching as high as SD, 1Jl-tfsl,
and this relief viii have a far-reaching Z
effect in several directions
It's Immediate Influence was most
noticeable IN foreign exchange, which
declined sharply under the anticipated
freer offerings OF finance bills
Crops Important.
Much depends upon the crops They
are the key 10 the entire situation. hnan-
ciaI. Industrial and commercial Thus
far the outlook in this respect is fairly
satisfactory Damage reports have Un-
questionabIy been greatly exaggerated
and there Is every reason why farmers
should bend every effort this season 70
obtain as large a yield as possible Crop
failures would, Of course, be disastrous
this year. But II the country only Sc
cures nothing better than fun average
Yields We may be sure OF another pros
porous year
"One effect Of the decline IN prices
viii be TO stimulate exports and check
imports, thus restoring our foreign com
merce 70 a more normal basis Our
farmers being financially strong, held
an unusual degree for the purpose OF
course, Of securing the highest possible
price. Indications are that this surplus
must now come upon the market Prices
Of agricultural products have receued
materially from the top level, weakening
the confidence OF holders, and the new
crops are only three OF four months us
tant- The outlook IS now for large ex
ports Of grain and cotton, which VIII
add 20 the supply Of commercial bills
and thus render stIl more remote any
possibility OF gold shipments II Is now
evident that many Of the abnormal Tea
lures resulting from the late boom are
correcting themselves, and gradually y
but surely readjustmeut VIII bring Us
into more normal conditions
Outlook Improved
The outlook for the stock market
has been distinctly improved BY the
placing Of these new issues and by the
readjustment which IS going on IN the
commercial markets. Trade reports from
the West, though conservative, are gen
orally. encouraging. It is true there has
been much speculation in land and 9th
or directions. but these movements do
not appear 10 have reached a DANCE
point. and the hand Of restraint IS al
I ready being imposed by the more pru-
dent class OF interior bankers The best
authorities state that as yet the bust
ness situation has not been endangered
4 by these eNcesses- A distinctly bette-
tone IS observable IN the EurOpear
Z money markets and the lower rates
Z for money existing over there VIII facil-
3 itate the distribution Of American bond
! issues which have generally been placed
s on attra ctiVe terms The monetary Sltla'
( ton here also is improving. and strin-
geucy incidental TO May disbursements
having been passed without any un-
T toward Developments Our leading
stocks have shown marked declines
since the first OF January. and are now
selling at rates that should be attrac-
tive 10 investors Securities have beer
Uassing from weak into stronger hands
the situation has been thoroughly test
ed and there is now a firmer basis for
/ confidence than has been soen any time
during the current year.