The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-06-01
WEEKLY LETTER
OF HENRY CLEWS

Clews New York; says of the bust
ness situation:
Inertia is the chief obstacle to inn
provement in the stock market at this
time. Activity has been checked by
various considerations, not the least
of which was the temporary cessation
of business in London out of respect
to the memory of King Edward. The
delay in placing our bonds in Europe
also had a lettering effect Con-
tinued cool weather in all sections of
the country and consequent backward
condition of the crops was another
element which put a damper upon in
ordinate optimism. There is also gen.
eral slackening up in business which to
be extending. Commodity prices had
reached a prohibitive point, and now
that downward reaction has set in
buyers naturally hesitate until salts
fed that the decline has reached its
limits.
There is no question but that a re-
adjustment to lower basis is going
on in industrial and mercantile affairs.
a readjustment that VIII prove highly
beneficial and pave the way for re-
newed activity at a later date. I'm
fortunately, the country has become
so accustomed to high pressure aoti-
witty and advancing prices that it can
not experience any movement in OPP
posite directions without becoming
unduly discouraged. 1t is question
If the national business nerve has not
been weakened by too prolonged pros
perity, since it now takes unnecessary
fright at the slightest sign of reaction.
1t has long been insisted upon in these
advices that the country would be be-
nefitted b ysome sort of REIMBURSEMENT,
our industrial machinery being out of
gear because some portions had ad-
vanced much more rapidly than others.
We are now going through a period Of
this character in when equilibrium Is
being restored. There is no occasion
for undue anxiety, and after period
of moderate retrencnment we may
look forward to renewed activity, pro-
vided the harvest realizes expecta-
tiens. At present the crop outlook
Is promising, although containing
spots of disappointment. Consider
able injury has unquestionably been
done to wheat in Kansas, but this
should be Offset by a larger corn crop.
The same remark will apply to the
country as a whole. A larger acreage
OF cotton is in prospect, and it is still
too early to indulge in pessimistic
views regarding any of our crops. A
cool and backward spring can hardly
be considered detrimental when ac-
companied by adequate moisture, and
it should be remembered that few
warm days will quickly place the crops
upon satisfactory footing.
The monetary situation shows fur
ther improvement. Interest rates are
now declining in the interior, and call
money is likely to be abundant and
cheap until harvest requirements set
in. The Western loan situation excites
some apprehension owing to the land
speculation, but interior bankers are
now showing much more conserva-
tive spirit, and there is less uneasiness
in this quarter. Abroad the none
tary situation is also better. Inter-
est rates are declining in both London
and Paris, and the outlook in this res
pect is even more favorable than an
ticipated. Just what reasons have led
to the delay in our bond negotiations
abroad are not yet divulged. Two
prominent issues have been taken,
and it is presumed others will follow
1t is quite possible that the terms
were not satisfactory for the reason
that investors are insistent upon bet
ter returns. The A per cent bond has
become a drug on the market, and
more attractive returns have to be Of
fered in order to secure purchasers
This accounted for failure of the Phi
ladelphia loan. There were plenty OF
buyers, but better inducements were
necessary. The fact that new appli-
cations for capital are numerous anc
that larger. returns must be Offered