The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-07-08

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and have added immensely to his poll.
tical strength.
One of the best elements of the sit
uation is the changed tendency in our
foreign trade. The country is gradu-
ally getting down to an export basis,
permitting a more normal information
al commerce than has been experience
ed for many months. With a liuuida-
ton and decline in commodities, which
should tend to still further lower the
cost of living, the probabilities are that
our imports will contract while ex-
ports expand; thus permitting a larger
influx of gold next fall if that be ne
cessary to offset and strirgency should
| 1t come. Europe is taking a more kind
| ly interest in our financial undertake
ings, and seems quite ready to parti-
cipate moderately in the better class
of American issues. Other stimulating
influences which can be cited are the
settlement of the railroad question
through passage of President Taft's
bill; the probability that the railroads
will later on secure a reasonable adj
vance in rates.
On the other hand there are uncer-
tainties ahead which may prevent any
| pronounced advance. Holiday quiet
will begin in the coming week; the
present political agitation is more or
less disturbing; besides there is an
undercurrent of public unrest. Big
crops will impose large demands upon
interior banks, which they in turn may
be compelled to transfer to the East, in
which case the New York banks will
be obliged to take larger share than
usual in financing the next harvest.
This contingency, however, has been
fully anticipated that when it arrives
/ it may easily prove less important than
expected The fact that trade is dull
everywhere will tend to maintain mo-
Notary ease. This inactivity in bust
ness, however, can hardly be consider
ed bull argument in stocks; and it's eff
| feet upon railroad earnings remains to
i be seen, especially in view of the large
/ increase in expenses which the rail.
roads are now compelled to face. The
! iron trade is not at present in wholly
satisfactory condition, and the ten
dency of prices is downward. The cot
ton goods industry is still going
through a period of stress, manufac
tureYs being obliged to curtail heavily
owing to their inability to secure the
higher prices necessary to cover the
increased cost of cotton. Another i'm
portant industry not yet adjusted to
present conditions is the copper trade,
which continues to suffer from over
production. From many points. of view
it is satisfactory to note that the ten
to a more normal level; yet on the
other hand it must be remembered
that lower prices for agricultural pro-
ducts mean smaller profits for farmers.
A.! The latter have had a number of very
fat years and can well afford one or
two lean ones, except where they have
| been tempted into extravaganza and
undue speculation. The Treasury sit
uation is one that is causing some con-
Germ on the part of Government Off
cials, and before long a bond issue
must be resorted to. This, of course
means that in case of money strin-
gency next fall but little assistance
can be expected from the Government.
Many of these facts are we'll under.
stood in financial circles, and their eff
feet has already been pretty well dis
counted. Upon the whole the influ.
lences pro and con in the market are
fairly well balanced, and the differ
ences of opinion between buyers and
ellers are sufficiently pronounced to
lIroyi1e basis for fair trading activi-
ty. After the decline of the last six
months, no very serious break can be
anticipated, besides which there still
remains a short interest of sufficient
importance to be an element of sup.
lport in case of decided reaction. Gen,
leral conditions are sound and there is
no reason for appresension, for the
country is at last taking a period OF
much needed rest. But, after riding
in automobiles for several years, com
ing back to a trOtting horse seems a
l 'athGr slow gait