El Paso herald. (El Paso, Tex.) 1901-1931, 1910-08-18
QUIET ADJUSTMENT
TO NEW CONDITIONS
Uneasiness Over Money Sit
uation Is Not Indicated
bv the Facts.

SAYS Henry Clews in his weekly
letter:
The business interests Of tae coun-
try are taking a needed period OF rest
for regeneration Our credit machln-
cry and our commercial arrangements
have been more or less out or gear
and readjus tTnent is necessary Ii Is
preferable that this be done QuletlE
and gradually rather than violently
This process of quiet adjustment 10
new conditions Is now progressing very
satisfactorily. and If a few additional
weeks of rest can be endured by the
impatient commercial spirit OF the
country it will be 70 the advantage OF
all concerned.
Improving Tendency.
While the general situation Is not
without drawbacks and uncertainties,
the tendency Is certainly towards I'M
provement. The rest cure Is at last
producing positively beneficent results,
especially in the money market NOT
long ago there was well founded APP
prehension. both at home and abroad,
that a serious money squeeze would de-
veIop this fall. Fortunately, however,
such apprehensiOnS have already IN
dergOne considerable modification Elk
tensive liquidation in stocks, contrac-
ton in loans conservatism of bankers,
LIQUIDATION in commodities, slackness
in trade. liberal imp0rtatiOns of gold
and continued rising of bank reserves
have all contributed to afford real and
perfectly natural relief to the monetary
situation It was feared that. owing
10 the large land and grain specula-
ton in the west, the interior banks
would not be able TO finance the crops
this season without UNUSUAL assistance
from eastern bankers; but for the rea-
sons Just stated these fears have con
Siderably diminished AS business re-
Quirements are slackening, and money
1T IL,
cipal money markets Of the world, un-
necessary uneasiness regarding the
mOentary article should be dismissed
at once: for at the worst nothing more
than temporary stringency or merely
local difficulties are to be expected.
The Crops:
The crop situation is not all that was
desired. The country was greatly in
need of bumper crops in order TO lower
cost Of food products and reduce the
cost OF living. The present agricul
fural outlook is for an average general
result According to the last report OF
the department Of agriculture the con-
dition of all crops combined on Au-
gust l was 6.5 percent lower than a
year ago and So percent lower than
the average of the past ten years. This
low condition will of course be Offset
crop of corn is now likely possibly
5000, 600 bushels. It must be re-
membered. however, that the crop is
more than two weeks late and. there
fore. in particular danger of early
frost. Should we have a satisfac-
fOry yield of corn II will do much to
offset shorta ges in other directions. II
is also to be noted with satisfaction
that the wheat yield IS turning out
much better than at one time expected.
The poor condition of cotton is an old
story and has been amply discounted
Caution the Rule.
In business circles a very quiet and
conservative tone prevails. Some slack
ening in the demand for. merchandise
at the hands of distributors is Observ-
able, but no serious reaction. Manu-
facturers are moving cautiously. and
in some lines Of industry there has
been considerable lessening OF activ-
ity- The iron trade has taken its full
share Of depression. due partly to less
ened purchases by railroads and also to
a falling of in building operations the
latter being estimated as much as Is
percent. If all accounts prove trde,
depression has been keenest in struc-
tural lines. Our great textile indus
tries are quiet. but not unduly de-
pressed. The general situation as a
result of recent liquidation is much
sounder. and soon as harvest is over
trade should again become normal
Stocks.
On the stock exchange, a decidedly
better feeling prevails Prices have
now recovered from five to 10 points
since the depression which accompan-
led liquidation of the Pearson syndi-
cate 1t would seem as II all the un-
favorable conditions which have been
so prevalent during the past few
months had been fully discounted. The
chief problem confronting the railroads
is that of net earnings. The volume of
traffic appears TO be well sustained
proving that business is not falling off
as much as some suppose. and the chief
concern OF railroad managers now lies
in the direction of keeping down ex-
penses and II possible securing better
rates. Both Of these elements are ques-
tiOns for the future. Current reports
show that most of the roads are doing
well; some of course feeling the ef-
fects of increased wages and growing
expenses and consequently reporting
smaller net earnings. 1t is still too
early, however. to assume that dfvi-
dends will have TO be reduced.
Confidence is growing stronger in
Wall street, and there Is a nOticeab BILE
freedom from disturbing rumOrs.
Stocks taken over by strong interests
during the recent liquidation are not
for sale. and this is an important fac
tor of strength.
Our bankers recognize that the worst
thing which could happen at this time \
would be a fresh outbreak of specula-
ton. What is most desired is mod
crate activity and fluctuations within