The Hartford republican., 1910-04-22

CROP, LABOR,
PROSPECTS
All Indicate Hopeful Aspect
For Situation.
Easier Money Rates, and Moder-
ate Concession to Labor
Ease Tension.

change should soon turn toward in
creased confidence, hence Improve
ment. The first of April was pass
ed with scarcely ripple in the mon
ey market, and this in spite of un-
usual strain in London Domestic
exchanges are already turning in fav-
or of New York, and from now on
the currency movement will be In
favor of this center; the ultimate re-
suit being easier money rates until
crop demands begin to assert them
selves. The only offset to easy mon
ey is the probability of considerable
gold exports. London is undergoing
a period of unusual monetary ten-
sion owing to complications arising
from the British budget, and an ex-
traordinary speculation in Rubber
shares. Danger signals have already
been hoisted in London, and the
breaks are being steadily applied.
The Bank of England reserve in much
in need of replenishing; Parish Is un-
willing to part with gold, and the
bank Is securing its supply from 9TH
er sources. II the bank rate is ad-
vanced 1t would create no surprise,
the reserve having dropped below 40
per cent, compared with 47.22 per
cent year ago and 51.2S per cent
two years ago; the consequence be-
ing that much of the demand falls
upon New York. Fortunately, we
are we'll able to meet the call The
United Stabes is large producer of
gold, and we can readily spare $685.
OOO, 1000 or $3O,OO0,OO0, which it 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 It's work more effec-
lively.
Next. to the improvement i'm local
monetary conditions, the outlook for
the crops is the most encouraging fac
tor. There is no doubt that the COM
ing season will witness a phenomen-
ally large acreage of cotton and grain
because present high prices must in
evitably stimulate the farmer to
raise the largest possible output;
first by increasing his acreage, and
second by better cultivation, the lat
ter including larger application OF
fertilizer than the ordinary seasons.
1t is too early 10 form any opinion
as to the final outcome, since that de-
pends chiefly upon the weather. But
with an increased product the world
over, it is quite evident that THE high
price movement for many products
has about reached It's climax. This
fact will eventually have am import
ant bearing upon our international
trade. 1t is probable that consider
able quantities of grain and provis-
ions are still being held back, which
later on will find an outlet More
over, we will soon be Within three
months of the harvest, period which
can be readily bridges by an eYten-
sion 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 causes for dis
content, but Is an indication that the
managers of the corporations, who
are in an exceptional position for
reaching safe conclusions, are eonfi-
dent of another season of good traffic.
Railroad earnings continue to show
handsome gains In gross, ard the I'm
provement In net Is consideraDie
notwithstanding large increases IN
expenses. Should net results not
prove satisfactory, 1t is quite within
reason to expect that railroads VIII
recoup themselves for advances in
wages by moderate increase In
their raoes.
HencefoNh the agitation regard
ing the high cost of living ought to
abate somewhat. Wages are rising
and the prospects of large crops Wall
tend to lower the price OF foodstuffs'
meats excepted because supply can
no. be quite so promptly expanded
Here, too, however, in due seasons we
may anticipate a downward reaction
Little by little the adjustment Is be-
ing made to the higher level; and as
this process becomes more complete
the opportunities for resumption oi
trade activity multiply. The cotton
goods industry is still inspainted by
diffdculty Of distributing goods al
present high prices but production
- "a, 70 yx1v ouf-t a He'd and