The Hawaiian gazette., 1910-03-15
THE NEW YORK MARKET.

Under date of February 26 Henry
Clews comments on the New York mar
ket as follows:
This is period of the year when the
market frequently shows quiet tend
ency. Many operators are absent on
midwinter vacations; general business
is quiet, and there is disposition to
postpone new commitments until the
approach of spring, which is usually a
sign for resuming activity. Nevertbe-
less good undertone prevails, and
confidence tends to increase rather
than diminish. In higher financial cir
cles there is still more or less doubt
concerning the presidential policy at
Washington and the outcome of i'm
portant impending Supreme Court deci-
sions affecting the American Tobacco,
Standard Oil and Union Pacific; but
! when these uncertainties are out of the
way there will inevitably be less hest
| tation.
During the last two or three weeks
quite rally has taken place from the
extreme low prices since the opening
| of the year, and this induced temporary
| selling on the part of traders. Stocks,
| however, are still low, and many of
| the better class issues offer returns at
the present figures which attract
| shrewd investors. The bond market
also shows decidedly better tone,
which is significant, and Europe has
been considerable buyer of the better
! class stocks and bonds. Already the
improvement has been sufficient to en-
courage the early placing of long de-
ferred issues. Perhaps the most unsat-
isfactory feature in the situation, next
to the political outlook, is the course
of our foreign trade. Exports continue
abnormally low, leaving, owing to
large imports, a heavy foreign indebt-
edness which must be settled either by
gold exports or security shipments. AS
Europe is unwilling to absorb large
quantities of the latter, and as condi-
tons are not yet favorable to reduction
' Of our foreign indebtedness, it follows
that our position in this resnect is not
strong one. The SITUATION will be
further influenced by the approaching
maturity of many of the short term
loans which Europe took in 1906 and
1907. The only cure for this difficulty
in our international trade is lower
l.
prices of merchandise which have beer
mainly instrumental in bringing about
these abnormal conditions. Our ex
ports of cotton, breadstuffs and meat
have been materially diminished b,
high prices, the same influence having
, also abnormally stimulated imports
Unless the foreign markets come up t.
i our level in prices, which is not likely
! there can be no cure for this difficult,
except that, as just said, of lowe
} prices. This again brings us to tn
great importance of a big harvest il
/ 1910. Nothing short of this will re
: store our equilibrium and preserv
t prosperity. The country is sorely il
need of larger supplies of everything
that grows under cultivation. lligl
prices ought to prove an immediate
stimulus to agriculture, which now af
fords profits not seen In many years
, The country is suffering from INSULT
? eient production, and It's salvation lie
in big crops for the coming season
r Short crops would now prove peculiar
? " disastrous, not only checking busl
' ness activity but creating a danger0u
: degree of discomfort, which would Ia
eyitably follow any further increase Il
the cost Of food products, We are nos
, paying The penalty and a dear penalt.
: II II, for the foolish efforts In man
directions 10 restrict production
I Trusts, unions and farmers have al
alike been preaching tho gospel o
restriction, what Nc mosl need !
I production 10 abundance Ia the HeE
! harvest