The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-08-02
LATEST LETTER
OF HENRY CLEWS
New York, July 20, 1910.

The stock market is still undergoing
a rigid course of treatment under
the rest cure. Many operators are
absent on vacations, and big banking
interests continue to discourage any
special activity in speculation at this
time. No encouragement to an adj
vance is afforded, neither are prices
allowed to show any marked declines
without meeting with support. The
general trend of financial affairs is
towards improvement. The local mo-
notary outlook has been much clar-
flied by recent liquidation, by rising
reserves, by contraction in loans and
general preparation to avert undue
stringency during the coming fall.
Gold imports have begun earlier than
expected, and estimates are that no
less than $4O,OOO,O0O of specie will be
imported from Europe this season.
Complete reports of the national
banks at the last call show legal
reserve of 21,22 per cent and a con-
traction of loans of about 100000.
The latter item, however, is still near.
ly $400,000,0O0 larger than year ago.
Eastern banks, upon which the strain
for moving the crops will chiefly fall,
show much the stronger position AL
together the monetary situation is
working out its own cure, and as
money will go much further, owing to
lower prices and diminished business
activity, there is much less reason
for fearing any undue stringency dur
ing the crop-moving period.
The formation of the proposed cur
rency associations will be beneficial
inasmuch as they would provide
against any injurious stringency in
the money market. Secretary Mac
Veagh appears to have overcome
some of the objections to the scheme,
and it is to be hoped the banks will
take advantage of his suggestions,
which are not put forward as a cure
for our financial evils, but as a pallia-
tive until more scientific system can
be adopted. The political situation
is also much less threatening. With
the adjournment of various legisla-
lures the attacks upon railroads and
other corporations have ceased. The
fact that such attacks tend to ag-
gravate any depression in business
also aids in their disbursement.
Public officials are lightning to learn
that these political raids upon capital
can be carried to a degree that is
harmful to their own parties, mas
much as it discourages enterprise,
checks development. and tends to
throw labor out of employment. Presi-
dent Taft has been doing his best to
soothe irritated nerves and assure
business interests that, while there
would be no cessation in the pressing
of reforms, such movements would be
conducted with as little irritation and
interference to business as possible.
ApprehensiOns as to the abuse of
power by the Interstate Commerce
Commission are gradually dwindlng
which beset them when the bill was
passed, they view the new bill with
less and less apprehension. Some
are already cooperating cordially to-
wards it's enforcement. Nevertheless
the railroad issues are not by any
means settled AS for the tariff is
sue, that is still too far distant d
question to have any effect upon the
market at present. 1t is nearly three
months before the fall Congressional
compaign will begin, and during that
time the politicians may find it to the
interest of their constituents to show
more consideration for business af-
fairs.
General business is very quiet, more
so than usual at this season. Curtail-
ment is still necessary in many in
dustries, and commodity prices con-
tinue on the decline. In consequence
buyers hesitate, their takings being
of a generally hand-to-mouth charac'
ter Doubtless when they discover
that rock bottom has been reached a
rush of orders will follow, since there
is nothing unsound in conditions. The
crops, though needing rain in some
sections, are progressing satisfactor
lily, and there is every Indication that
farmers both West and South will
this year raise products quite equa
in value to those of last year, and this
in spite of the damage to spring
wheat, the importance of which has
been vastly overestimated. What IL
a loss of S1OO,OOO,OOO, the estimated
damage to spring wheat, compared
with the total value of farm products