The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-06-15

treatment to the railroads and just
and reasonable rates to the shippers,
long step would be taken in remov.
ing one of the most acute sources of Fl.
nancial and political .disquet.
The railroads are evidently deter.
mined to secure better rates and are
now filing notices of advances indi-
vidually instead of collectively. but
aside from this the general outlook,
though somewhat mixed, is in many
respects favorable. Recognition OF
overspeculation in Western land has
forced general retrenchment by inter-
ior banks; and the steady curtailment
of credit is gradually curing some
of the financial ills from which that
section is suffering. It is recognized,
however, that the interior banks will
not be able to finance the crops as cas-
lily as usual, owing to the expansion of
loans connected with land specula-
lions in the West. Eastern banks
will undoubtedly be obliged to assist
in the autumn crop movement, aud
have been preparing themselves ac.
cordingly. AS a result of these mon
etary conditions our bankers have
been forced to look to Europe for the
financing of proposed new security
issues. While mosey is abundantly
easy in both London and Paris, the
placing of American securities has uu-
questionably been delayed by pro-
nounced foreign distrust of the sit
uation here. On the other side there
has been a growing feeling that
sharp liquidation must take place here
and a lower level for commodities as
well as securities be established
in the United States can be restored.
Such liquidations are now in progress
in fact, have already run to a very
considerable extent. Wheat and cot
ton have shown marked declines, and
the tendency is for still lower prices.
Commodities generally are declining.
Unsatisfactory as this may be to
those operating for the rise, the coun-
try will ultimately be benefited and
the cost of living will decline. Both
wheat and cotton will go outward
more freely and save us from the al
Tentative of a further depletion Of
our gold supply. The situation has
already been materially relieved by
this unpleasant but curative process.
Our crop situation is fairly salts
factory. The outlook is for a full
crop of cotton, and wheat promises
well. The prospect is also for big
hay crop. The growing season is
from two to three weeks late, which
somewhat increases the perils from
early frQsts, still there is ample time
for recovery of lost ground, and it
would be premature to take discourag-
ing views of the present crop situa-
ton. Other favorable influences are
the successful placing of st. Paul bonds
and city warrants in Paris. the de-
cline in the Bank of England rate, a
good cotton report, and the sharp de-
cline in imports which with lower
prices for wheat and cotton and for
eign takings of our securities will in
terfere with further gold exports.
it seems quite certain that Europe will
take our best securities at a price,
and present conditions seems unusual
ly favorable to the foreign purchaser.
General business is affected adverse
ly by the reaction IN Wall Street, as
we'll as by a general recognition that
we are passing through a period OF
readjustment from the late activity
and excessively high prices. Buyers
naturally hesitate under such circum-
stances, although thus far, there has
been no serious slackening up of
trade. Rather more activity has been
shown in iron, owing to price conces-
sions, but the future of this industry
is largely dependent upon the rail-
road outlook; equipment orders are
being Cancelled, and new purchases of
steel products are undoubtedly con-
tingent upon the successful placing of
American railroad bonds abroad.
Delay in the latter will undoubtedly
influence the steel industry unfavor-
ably.
The outlook for the market is ex-
ceedingly uncertain. Political con-
ditions are unfavorabie, and the coun.
try / threatened with a growing an
ti-railroad, and anti-tariff agitation
for some time to come Political lead
ers are awaiting the return of Mr.
Roosevelt. Financial leaders may dc