The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-06-28
LETTER
Of HENRY CLEWS
Continued from page five)

speculative ventures. Bankers in all
parts of the country have been re.
trenching and outstanding their re-
sources. The feeling of extreme con-
servation which extended from the At
lantic to the Pacific has also resulted
in a general application of down
brakes" the result being a general
strengthening of financial conditions.
Money is easy, and promises to remain
so for some time to come. In fact, with
the rates of interest at their present
point, and good stocks often selling on
a 6 per cent, basis, it is plain that some
sort Of adjustment must follow. If
money rates do not advance, stocks
probably will.
One of the most favorable events of
the week was the passage of the Rail-
&. road bill very much in the form which
President Taft first desired A few
years ago such a measure would have
created CONSERVATION in Wall Street.
Today it's passage has been thoroughly
discounted, and as railroad officials and
investors become accustomed to it's
provisions, its restrictions will appear
less distasteful than at one time anti
cipated. The bill may contain minor
defects, but is certainly the best that
could be passed, and will work no harm
to the railroads; in fact may prove a
benefit, for it would disarm public
hostility and insure fair treatment for
both railroads and shippers. The rail
it's provisions, and it is quite safe to
say that no important new railroa
legislation will be attempted for some
time to come. The question of rates
will now fortunately be left open for
discussion. Advances will not be i'm.
possible, but the railroads will have to
justify such steps before making them;
thus protecting the public from eXor
bitant charges, and giving railroads
freedom to advance rates when justi
fed.
Having accomplished this much Con
gress will soon adjourn, much to the
relief of the country at large. Next
, fall we may have to face a revival OF
tariff and antitrust agitation, but that
contingency is so far distant as tc
have no effect upon the market at pre-
sent. Throughout the West more
hopeful feeling prevails, owing to inn
proved financial conditions resulting
from precautions which the banks
have taken during the past month
The financial skies are gradually clear
/ ing and much relief is felt that the re
1 cent drastic liquidation has been en-
dured without and important disaster
IS -
On the unfavorable side of the mar
ket these factors should not be los
) sight of. Political unrest; tariff pro
spects; Mr.. Roosevelt's return; back
ward condition of the crop; dull trade
excessive demand on capital, and less
favorable net railroad returns. These
factors, however, while no; to be over
looked, do not need to be unduly con
sidered, having been very largely, i
& not entirely, discounted so far as thu
security markets are concerned by {
six months continuous decline. Al
parently we are in for a season of bust
ness inactivity, but conditions are no
unsound, and there is every reason Il
anticipate a revival later on. A few
warm days would quickly compensate
=. for the backward condition of tn
crops, and it should be remembers
that the latter are rarely much injure
by an abundance of moisture. There ar
n few instances in which our markets ar
oversupplied, although the slackness o
, demand is causing general down
o ward movement in commodity prices
n The latter is really a most welcom
IF development, inasmuch as it means tn
e re-establishment of trade on lowe
and safer level; also lowering in tn
4 cost of living which has been tn
l. source of so much public discomfort.
49, =s=e=s @&[
. lues from the personal interest stand
point of large holdings Hence We
y are not looking for any material fur
j Their decline during the interim to
> wards the crucial point Of the cam
paign to be reached in August and a.
ter.