The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-08-22

Other hand, even partial failure of |
the corn crop might invite serious
Another four to six
weeks must elapse before corn is
fully made. Fortunately, the latest re-
yield. Wheat, too, has been showing ,
marked recuperative powers from pre-
vious damage All things considered. |
the crop outlook is mixed and might |
be better; but still contains some fea-
lures of positive encouragement.
Another element of uncertainty is |
the political situation. Recent events |
at the West emphasize political dis
content and indicate Democratic gains |
in the election next November. AID. |
vices from Washington also suggest |
the probability of considerable |
agitation in the early future. The
business outlook is not altogether |
satisfactory. 1t is now generally re-
cognized that the country has already !
entered a period of reaction, retrench- !
ment and Teadjustment Nothing sc |
we're in this direction is expected, but |
it is generally recognized that the
pace has been too fast and that a |
period of slowing-down is imperative |
Conditions in the iron trade, which is
usually considered our best trade ba- |
rOmeter, confirm these views. Produc- |
ton Of pig iron is running at the rate |
of about 26,000,000 tons annually, which !
is 20 FER cent below maximum of the |
year. Prices of iron products show a
declining tendency. The copper situa-
tion continues perplexing; supplies
are increasing to an embarrassing ex-
tent, and there seems to be no way
of restraining the output except by re-
ducing prices to level that will force
shutdown of the weaker concerns.
The textile trades are experiencing d
slight Improvement, but are still en-
barrassed by the high cost of raw
material, and many mills are idle.
Business failures are increasing; the
total number reported in July being
1.147, against 1105 year ago. More
than $1,000,000,000 in new securities
were issued in the last six months.
In July the issues were only about
$62,000000 compared with 1921, 100000
q, year ago. Railroad earnings con-
tinue to show a liberal Increase in
gross; but number of the roads are
showing startling losses in net since
the increase in wages which went
into effect on June 1. Plainly, railroads
must secure better rates of freight,
unless they are to cut wages and ex-
penses to a point that would be haz-
ardous. Doubtless many of the roads
will inaugurate policy of rigid eco
nomy before very long; something
that will neither be relished by labor
nor by concerns supplying the rail
roads with materials and equipment.
The above is rather a formidable
arises, What will the stock market
do with them?" The answer is, That
to very large extent these adverse
conditions have already been fully
discounted" Many stocks are now
selling at prices which should be at
tractive to the investor, even in event
of reduced dividend. Liquidation has
been severe; many weak spots have
been removed, and stocks have passed
from weaker into strong hands. 1t is
! impossible to avoid the conclusion
that the drastic liquidation of the last
six months must have very materially
strengthened the technical situation
of the stock market. So far as the
railroads are concerned, there is a
fair prospect of their securing better
rates when their appeal comes before
the Interstate Commerce Commission
ers after the November elections. 1t is
also important to note that the market
is in excellent control; this being de-
monstrated by the skillful manner in
which heavy liquidation has been &C.
complished without causing any inn
portaut failures or excitement.
Perhaps the best feature in the
whole situation is the very decided
Improvement in monetary affairs.
Possibly there may be some local
stringency or disturbance from over
extension of credits in the interior,
but nothing serious in this respect is
now epprehended, or certainly moth
ing more than what the banks can
easily take care of. The financial
situation is now well under control
Bankers are conservative and en-
couraging contraction. Our credit
abroad is good: gold imports will con
tinue; Europe has aided us immensely
by free purchases of securities; the