The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-08-10
LATEST LETTER
OF HENRY CLEWS
New York, July 80, 1910.

of disconnected lines into a new
transcontinental system, proved to be
at the bottom of the collapse in va
lues which occurred in Mondays and
Tuesdays market. The taking over
of these securities by a strong inter-
national banking syndicate unques-
tionably saved the market from a
worse crash, and produced a radical
change for the better, in the technical
situation. AS soon as the facts be-
came known liquidation ceased, and a
sharp rebound followed which was
materially accelerated by a rush to
cover outstanding shorts. The ex-
IRENE pessimism bred by the mystic
rious declines of last week suddenly
disappeared and the whole market
displayed a better and more normal
tone. Another consideration which
impaired a better tone and checked
the growing wave of pessImism was
the report Of the United States Steel
Company, which showed handsome
profits for the past quarter and a
smaller falling off in orders on hand
than was really anticipated. AS the
steel trade is still considered one of
the best Industrial barometers, the
effect of this report was naturally sti-
mulatirg.
The monetary situation shows fur
ther improvement. Local bank re
sources continue to rise, and there is
much less apprehension of severe mo-
notary stringency during the coming
fall than at one time existed. What
with liquidation in stocks and declin-
ing values in commodities and secur-
tiles, money goes much further than
six months ago, especially in view of
the shrinkage in volume of business
and speculation. The last statement
of the national banks may have been
unsatisfactory owing to the small con
traction in loans at the interior, but
recently farmers have been marketing
their crops more freely and liquida.
ton from this and other sources will
probably result in a much better
showing for the interior banks when
the next call is issued. Gold imports
continue on an increasing scale, and
there is every indication that we
will command all of the precious me-
fal that w nna6 INV
investments in our securities during
the past six months more than offset
the shrinkage in our foreign trade
balance. The tendency in our for
eign trade is towards improvement,
because the decline in commodities
puts us upon a more favorable export
basis and tends to restrain importa-
tions. While some stringency may
be anticipated during the crop season,
there is much less danger of a crisis
in this respect than formerly Should
any of the bankers agree to form cur
rency associations that will be a fur
Their protection against crisis, which
in view of the inability of the gov
eminent to assist the market in an
emergency would seem to be a desir.
able alternative. No one pretends
that these associations are final cure
for our currency evils, but they
would at least prove an efficient pal,
liative until genuine currency reform
can be established.
The crop outlook is not entirely sat.
isfactory. The yield of wheat, cotton
and corn is likely to fall below early
calculations. The loss in wheat has
already been amply discounted and
is not serious. Much deterioration
however has taken place in cotton
and the corn crop has likewise lost
ground to some extent. Both of these
crops are still in danger of early
frosts, and disaster to either would,
under present conditions, have a
very serious effect upon business. The
country was urgently in need of a
large Gotten crop, but the outlook is
now for 100000 bale yield, which
is below normal and means continued
high prices for cotton. The effect
of this upon the domestic industry
and upon our export trade must be
taken into consideration. Our main
hope regarding the crops still cen
tiers upon corn. Should this prove a
bumper yield it will do much towards
offsetting any loss in wheat and cot
ton. The result, however, will be tc
leave the agricultural situation spot
~. Some of our farmers will enjoy
another season Of exceptional profits
while others must endure serious
loss.
The business outlook ia mixed. both