Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1910-06-01

in hand The Western situation is at
tracing much attention, because of
the considerable over-expansion OF
loans BY Western ins itutioas, fre-
.quently on collateral of questioned sta
bility. There has been a great land
boom all through tne West. IN which
State and National banks and o her
financial institutions have had much
TO do ii financing. While there has
been an unquestioned and healthy rise
in land values. still excess has bro
ken out in many places. and there is
danger of reac ion. With so large an
amount Of funds locked up in such OPP
erations, the western banks will be
less able TO take care of the crops
next fall than usual. This means
firm rates for money when the crop
movement begins, and New York may
be called upon for assistance to a
larger extent than for several years.
Little aid can be obtained from the
treasury in the event of a pinch;
for government funds are at low ebb
and the borrowing capacity OF the
treasury is also crippled while there
is no prospect of any thorough cur
rency legislation during the present
session Of congress. The monetary
movement therefore is one that will
require close watching and skinful
plotting during the mex two or three
months.
Our railroad situation is also not
without its embarrassing features.
Gross earnings, it is true. exhibit
handsome increases. bu. net returns
do not show corresponding gains, ard
in many cases they are showing ae-
tual losses. The latter may become
still more apparent when the recent
advances in wages begin to show their
effects. The railroads had hoped %
recoup themselves by al advance in
rates. To some extent they have
succeeded: but all further efforts TO
very Strenuous opposition on the part
Of shippers; and in the present hos
tile attitude Of public opinion, the
chances of the railroads being able
10 compensate themselves for recent
increasing outlays is not at all bril-
liant The fate OF the Taft Railroad
bill is also a matter of importance.
That measure is now in very drastic
form and though it cannot pass in its
! present shape tho uncertainty is dis
couraging to the large financial in
terests. and Europe, it must be re-
membered, is much influenced by the
attitude of congress towards the
railroads.
General business is quie.; some
lines, particularly, being extremely
dull A slightly better tone is observ-
able in the metal industries and more
activity is being shown in the iron
Urade, although the Steel corporation
is only rurning at about 20 per cent
of its full capacity. Crops are making
fair progress, the weather in the past
few weeks having been more favor
able. AS stated in previous advices,
good crops are more vital TO contin-
uation Of good business han any other
single factor, and this year it is es-
pecially important that the country
have a good harvest. Our foreign
trade cont ues to show deficiency
in expor but the recent downward
tendency OF commodities in general
lshould tend to restrain imports and
stimulate exports, thus restoring the
much desired equilibrium in our for
eign trade. The decline in wheat is
an especially favorable incider. For
tuaateiy, Europe is in a much easier
financial position than expected. les
sening the probabilities CT further
drain on our gold supply, which would
be very unwelcome under existing cir
cumstances. The favorable features
in the market are these. Sa isfactory
crop progress, easy money u-til croI
requirements begin, aud approaching
adjournment Of congress. II may be
that the market leaders viii be able
I to utilize these condi ions as a basis
for forcing a higher market. UpoI
Ian good rallies, however, We should
advise profit taking until intrinsic
conditions improve.-Henry Clews.