The Richmond palladium and sun-telegram., 1910-04-11
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

The spring seasons tendency on the
Stock Exchange should soon turn to-
ward increased confidence, hence i'm
provement. The first of April was
passed with scarcely ripple in the
money market, and this in spite of un-
usual strain in London. Domestic ex-
changes are already turning in favor
Of New York, and from now on the cur
rency movement will be in favor of
this center; the ultimate result being
easier money rates until crop demands
begin to assert themselves. The only
offset to easy money is the probabili-
ty of considerable gold exports. Lon
don is undergoing a period of unusual
monetary tension owing to complica-
tions arising from the British Budget,
and an extraordinary speculation in
rubber shares. Danger signals have
already been hoisted in London, and
the brakes are being steadily applied.
The bank of England reserve is much
In need Of replenishing; Paris Is un-
willing to part with gold, and the
bank is securing it's supply from other
sources. II the bank rate Is advanc-
ed 1t would create no surprise, the re-
serve having dropped below 40 per
cent. compared with 47.22 per cent a
year ago, and 81 % per cent two years
ago; the consequence being that much
of the demand falls upon New York.
Fortunately. we are we'll able to meet
the call. The United States is large
producer of gold, and we can readily
spare $25 100000 or $3O.OOOOOO. which
1t is expected London will require. If
the efflux does not run to excess it will
be beneficial, inasmuch as 1t will
strengthen London, and place. gold
where it will do its work most effect
lively.
Next to the improvement in local
monetary conditions, the outlook for
the crops Is the most encouraging fac
tor. There Is no doubht that the COM
ing season will witness phenomenal
ly large acreage of cotton and grain,
because present high prices must inev-
itably stimulate the farmer to raise the
largest possible output; first by in
creasing his acreage, and second by
the better cultivation, the latter in
cluding larger application OF fertil.
iers than in ordinary seasons. 1t is
too early to form any opinion as to the
final outcome, since that depends chief
ly upon the weather. But with an
increased product the world over, it is
quite evident that the high price move
ment for many products has about
reached its climax. This fact will
eventually have an important bearing
upon our international trade. It Is
probable that considerable quantities
Of grain and provisions are still being
held back. which later on will find an
outlet. Moreover. we will soon be
within three months of the harvest. u
period which can be readily bridged by
an extension Of our credit abroad,
should that prove necessary.
There Is also considerable improve
ment in the labor outlook. Nearly all
of the leading railroads have made
moderate concessions to labor, which
will not only remove the causes of dis
content. but is an indication that the
managers of these corporations, who
are in an exceptional position for
reaching safe conclusions, are conf
dent OF another season Of good traffic.
Railroad earnings continue to show
handsome gains in gross. and the i'm
provement in net Is considerable, not
withstanding large increases In ex-
penses. Should net results not prove
satisfactory. it is quite within reason
to expect that railroads will recoup
themselves for advances in wages by
Z moderate increase in their rates.
Henceforth the agitation regarding
the high cost OF living ought to abate
somewhat. Wages are rising. and
the prospects of large crops will tend
to lower the price OF foodstuffs, meats
excepted, because the supply cannot be
quite SO promptly expanded. Here.
too, however. in due season we may
anticipate . downward reaction. Little
by little the adjustment is being made
to the higher level; and as this pro-
cess becomes more complete. the OPP
portunities for resumption OF trade ac-
tivity multiply. The cotton goods in
dustry is still impaired by difficulty Of
distributing goods at present high pric-
es, but production is being considera-
bly, curtailed and cotton has shown
some signs Of weakness. which should
facilitate readjustment Good pros
poets are prevalent in the iron trade:
the large Issues Of new securities mean
Ing that the railroads will ere long be-
come hsavy purchasers Of constructive