The Paducah evening sun., 1910-02-28
CONFIDENCE Is
ON THE INCREASE
GOOD UNDERSTANDING PRE-
Walls IN MARKETS.
General business at Quiet Season
Shows Plenty Of Activity
At Present.
CLEARING HOUSE RETURNS

II New York, Feb. 2S. Especial >
This is a period of the year when the
market frequently shows quiet
tendency. Many operators are alb
sent on mid-winter vacations: gen.
eral business Is quiet, and there is a
disposition to postpone new commit
ments until the approach of spring,
which is usually sign for resumir g
activity. Nevertheless a good under
tone prevails. and confidence tends TO
increase rather than diminish. In
higher financial circles there IS still
more or less doubt concerning the
presidential policy at Washington and
the outcome of important impending
supreme court decisions affecting the
American Tobacco-Standard Oil and
Union Pacific; but when these uneer-
tainties are out of the way there will
inevitably be less hesitation.
During the last two or three weeks
quite a rally has taken place from the
extreme low prices since the opening
of the year, and this induced tenn
porary selling on the part of traders.
Stocks, however, are still low, and
many of the better class issues offer
returns at the present figures which
attIact shrewd investors. The bond
market also shows a decidedly better
tone. which is significant. and Europe
has been a considerable buyer of the
better class stocks and bonds. Already
the improvement has been sufficient
to encourage the early placing OF
long deferred issues. Perhaps the
most unsatisfactory feature in the
situation, next to the political out
look, Is the course OF our foreign
trade. Exports continue abnormallp
low, leaving. owing to large imports.
a heavy foreign indebtedness which
must be settled either by gold ex-
ports or security shipments. As
Europe is unwilling to absorb large
quantities of the latter, and as con-
Iditions are not yet favorable to re-
duction of our foreign indebtedness.
ii follows that our position IN this
respect is not a strong one. The situ-
alton will be further influenced by
the approaching maturity of many of
the short term loans which Europe
took in 1906 and 1907. The only
cure for this difficulty in our interna-
tiOnal trade is lower prices for COM
modities. II is the high prices OF
merchandise which have been mainlp
instrumental I'm bringing about these
abnormal conditions. Our exports of
cotton, breadstuffs and meats have
been materially diminished by high
prices. the same influence having also
|abnormally stimulated imports. I'm
less the foreign markets come up to
our level in prices, which is not like
ly there can be no cure for this diff
Guilty except that, as Just said, of
lower prices. This again brings us TO
the great importance OF big harvest
IN 1910. Nothing short of this will
restore our equilibrium and preserve
prosperity. The country Is sorely In
need of larger supplies OF everything
that grows under cultivation. High
prices ought to prove an immediate
stimulus TO agriculture. which now
affords profits not seen in many years
The country is suffering from INSULT
cient production. and its salvation lies
in big crops for the coming season.
Short crops would now peculiarly dis
astrous, not only checking business
activity, but creating a dangerous de-
gree OF discomfort, which would in
evitably follow any further increase
in the cost OF food products. We are
now paying the penalty. and dear
penalty It is. for the foolish efforts in
many directions to restrict produc-
ton. Trusts, unions and farmers