The Washington times., 1910-05-21
THERE IS PROMISE
IN READJUST MENT
Nation Used TO High Pres
sure Activity, Nervousness
Follows Let-up.
IIenrv CIe,yn, MeekIy NIarkct Letter.

Henry Cieyvs' Weekly Market Letter
NEW YORK, May I.-There is no
question but that a readjustment TO
lower basis going on in industrial and
mercantile affairs. a readjustment that
Will prove highly beneficial and pave the
way for renewed activity at a later date.
Unfortunately the coUItry has become
so accustomed TO high pressure activity
and advancing prices that It cannot eX-
perience any movement IN opposite di-
rections without becoming undUly dis
couraged. II is a ques on If the ma
uonal business nerve has rot been weak
ened by too prolonged prosperity, since
It now takes unnecessary fright at the
slightest sign Of reaction. It has long
been insisted upon IN these advices that
the country would be benefited by some
sort OF readjustment; our industrial
machinery being out OF gear because
some portions had advanced much more
rapidly than others. We are now going
through a period Of this character, in
which equilibrium is being restored
There is no occasion for undue anxiety,
and after a period of moderate retrench-
ment we may look forward 20 renewed
activity, providing the harvest realizes
expectations. At presenJ The crop out
spots of disappointment Considerable
injury has unQuesJiouabIy been done 10
wheat IN Kansas. bu this should nc
Offset by a larger corn crop. The same
remark VIII apply 10 he country as
whole. A larger acreage OF cotton IS
in prospect, and II is still too early 70
indulge IN pessimistIc views regarding
any Of our crops
Money Easier.
The monetary situation shows further
Improvement Interest rates are now
declining in the interior. and cau money
is likely to be abundant and cheap I'M
IN harvest requirements set IN. The
western loan situation excites some ap-
prehension owing to the land specula-
ton, but interior bankers are now show
ing A much more conservative spirit.
and there IS less uneasiness IN this quar-
ter Abroad the monetary situation ls
also better Interest rates are declining
i'm both London and Paris, and the out
look in this respect IS even more IA
vorable than anticipated Just what
reasons have led 20 the delay IN our bond
negotiations abroad are not yet d.
vulged. Two prominent issues have
been taken, and IL IS presumed others
VIII follow. II is quite possible that the
terms were not satisfactory for the rea-
son that investors are insisteut upon
better returns.
Exit the Z Per Cent Bond
The ( per cent bond has become a
drug on the market. and more attrac-
tive returns have 70 be offered I'm order
to secure purchasers This accounted
for failure Of the Philadelphia loan.
There were plenty Of buyers, but bet
ter inducements were necessary. The
fact that new applications for capital
81. L. HrrH -
must be offered than formerly IS one OF
I the important features Of the market
at this time, and prom Ses TO divert at
tentiOn from bonds TO stocks Inc latter
have already had @ considerable de-
cline. and a number OF good issues can
be found returning 5 Per cent and up
wards Europe Is likely 70 be a good
buyer Of our securities provided the
terms are SATISFACTORY
A favorable feature has been the de-
clines in wheat and cotton, considerable
quantities Of which have been held back
from export by high prices For some
time past our foreign trade has peen
:. iverselv affected by the deficiency in
exports. and the present declining ten
denotes Of commodities VIII doubtless
hasten the restoration Of equilibrium be-
tween our imports anC exports Europe.
purchases of bonds fortunately restrict
cd gold shipments. which otherwise
would rave run 10 point stimulating
The present period OF rest viii enable
the country 10 regain its nerve ana pave
the way for renewed activity upon a
lower and slfer level. When that tim1
draws near. the stock u-rlet, as usua
will lead in its anticipation The bis
holders are still under the market, and
| The short interest IS now sufficiently
large TO be an element of strength The
| probability of "A wider market for our
/ Securities through Paris should also not
] be overlooked.