The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-05-28
FINANCE LETTER
Of HENRY CLEWS
Continued from page flve)

shutting down of cotton mills. These
and other ADVERSE influences which ex-
erted a depressing effect upon the
stock market were well understood by
the large holders of securities and
have been unquestionably discounted
by the shrinkage in values which has
taken place since the opening of the
year AS a result of these tenden-
cies bear party of considerable in
fiuence was created, and it's success
stimulated resistance to all upward
Ireactions. 1t should be recognized,
however, that depressing conditions
of this sort have probably exerted
their full effect, and that other and
more favorable factors are counteract-
ing them. A sharp decline in ex-
Ichange emphasized the fact that gold
shipments are over. 1t must be ad.
mitted that our GOLD. having gone
where it was most needed, has much
improved the situation in London and
the Continent. The death of the
King is now an affair of the past; and
there is no doubt but that the British
subjects will Loyalty SUPPORT the new
king. The death of King Edward,
moreover, has tended to soften poll
teal asperities, and through postpone
ment of the election, which is prac-
tically decided upon, time will be af-
forded for settlement of the grave pro.
blems of State with less excitement
than had the crisis come to a head
during the approaching summer This
elimination of bitterness from British
politics will inevitably have a favor
able effect upon financial affairs in
London. 1t is quite likely that the
young King, though at present natu-
rally less popular than his royal faith
er, will give the British nation a wise
administration; and the German EN-
peror will doubtless be less jealous of
his young cousin than he seems 20
have been of his influential uncle who
did so much to fortify British foreign
relations.
The outlook in this country depends
chiefly upon the crops Thus far the
outlook in this respect is satisfac-
tory. Some damage was done by re-
cent unfavorable weather, but only in
spots, and the injury was much ex-
aggerated. Should the results of the
crops reach $8,5OO,OOO,OOO TO $9,OOO,-
100000 as is now predicted, good !
times for the United States will be
continued. Possibly our farmers may
not secure quite as large profits in
1910 as in 1909, owing to the declines
in commodities; but their margin has
been unusually wide, and moderate
recession will still yield the agricul-
turist good returns, at the same time
atfording some relief to the consumer
who has been compelled to pay in
ordinately high prices during the past
year 1t is true that Western bankers
show a more conservative spirit than
was anticipated a month ago, and
somewhat higher rates of money are
expected to prevail at the West in con-
sequence. Nevertheless, money will
be fairly abundant and easy until the
new crops begin to move, which will
be about September LIST. AS already
stated, stocks have had very con-
siderable decline from the high mark,
and it is evident that powerful finan-
cial interests are under the market;
their support being rendered neces-
sary by the issue of large amounts OF
new bonds and short-term notes dur
ing the current month. At present
the outlook is comparatively free of
breakers ahead The discouraging in
tuences which attracted so much at
tention in the public mind have been
amply discounted by our financial :
leaders who foresaw their approach
some weeks ago and adjusted them
selves accordingly
Business is generally quiet; declin-
Ing commodity markets having caused
more or less hesitancy among buyers.
A period of rest in commercial cir.
ales will prove beneficial, inasmuch rs
t will avert the danger of over-con-
idence, and enable all parties to ac-
luire a clearer and more correct Ees-
)ective of the general situation. The
country has been going ahead at ire
nendous speed, to fast in some res
)ects, aud time is desirable so that
he laggards may have an opportun-
ty of catching up. Should the crop
outlook continue satisfactory, bust
less is sure to revive later on and =
here is as yet no reason for taking
my but hopeful view regarding the
uture. Before long Congress will
adjourn and the cnuntry will tbap