The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-11-02
MARKET LETTER
Of HENRY CLEWS
Continued from page five)

Continued from page five)
abuses which are apt to creep in with
too long political innings. Local is
sues in this State are largely personal.
So far as national issues are concern.
ed, these appear to chiefly center up
on the tariff. President Taft's idea,
however, for non-paTtisan commits
sion, aiming to deal with the tariff
one schedule at a time, has allayed
much of the anxiety in this quarter.
Among other favorable political indi-
cations are the moderating of public
hostility to corporations; the belief
that the Supreme Court will not des-
troy property rights, and the expecta-
ton that the railroads will secure 'rea-
sonable treatment in their request for
advanced rates, All of these consider
ations have combined to stimulate a
revival of confidence in security mar
| kets. A somewhat better demand for
bonds has also recently developed
This is partly an indication of in
creased confidence, is partly due to ac-
emulation of funds seeking invest
ment and partly to a realization of the
fact that bonds are really not endan-
gered by any probable action which
the Interstate Commerce Commission
may take on the rate situation. Pre-
sident McCrea's thoroughly sound and
| temperate argument in favor of bet
ter rates created a strong impression
not only in investment circles, but also
among shippers who are fighting all
advances, among political leaders at
Washington and aMcng the petty pom
ticians who have been ignorantly as
suming that clubbing the railroads was
good for vote-making. Everything now
indicates that the railroad problem
will be solved along lines that recog-
nize rights of both railroads and ship
pers, and that justice will be dealt out
as evenly as possible to each and
every interest.
Our foreign trade is showing a very
remarkable and satisfactory change to-
wards more normal conditions. In
September our exports were valued at
nearly $169,0O0,OOO. This was nearly
$15, 100000 in excess of last year, and
was probably the heaviest September
on record. The increase was partly
due to heavy cotton shipments. I'M
ports during the same month amount
ed to only $11700O,OOO, a decrease of
nearly $4,OOO,OOO compared with last
year. The net result for the month
was an excess Of exports Of $51 100000
compared with $33 100000 in 1909 and
nearly $41,000,000 in 1908. This
change in the tendency of our foreign
trade is wholesome and significant
For long period, owing chiefly to the
high level of prices here, the tendency
has been for imports to increase and
exports to diminish; thus creating a
surplus of imports instead of exports
as usual. 1t is quite possible to have
satisfactory foreign trade in which
trade in the final analysis is barter,
and cannot be continued unless mu-
tually profitable. But the United
States has always been an export
country owing to it's surplus of agri-
cultural products. With the growth of
population it is certain we shall grad
ually change in this respect, and if we
are to continue impQrtations from
abroad, as we must, it will be neces-
sary for us to prepare to make pay
ments in larger exports of manufac-
lures to compensate for diminished
agricultural exports.
All anxiety about the local money
market has now disappeared. Tenn
porary stringency may occur between
now and the first of the year, and the
Importance of the advance in the Bank
looked. 1t is a warning that must be
needed. If all reports are true, con-
siderable amounts of American finance
bills have been placed abroad, and
should Europe liquidate American
| stocks with any freedom we might find
ourselves shortly exporting gold at
season when imports are customary.
On the other hand, funds withdrawn
for crop moving purposes will soon be-
gin to return from the West, and with
lower prices for commodities and the
| lessened activity of business there
should be no scarcity of loanable
funds, The excess of loans over de-
posits in some sections of the country
is an indication of unsatisfactory con-
ditions which in time will probably
| nj oht thnmsnluas Tha fear of local