The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-09-06
MARKET LETTER
OF HENRY CLEWS
Nov YORK. August 81, 1910.

The events of the past week were
not of a particularly stimulating char
acter The most important check to
a further rise in values was the prac-
teal opening of the political campaign
ON issues which inevitably excite more
or less uncertainty in business circles.
It is now settled that the tariff will be
one of the leading issues in the com
ing campaign. 1t is doubtful it any
important changes in schedules will
be effected, but the disturbance which
tariff agitation always induces neces-
sarily checks initiative and postpones
many new commitments Il Is ques-
tionable, however if in the long run
the aggregate yalume of business will
suffer thereby, for changes i'm the ta-
rim delay or derange rather thnn des-
troy business. There is also some
prospect of a revival of anti-corpora-
tion agitation; and, as the political
campaign will be waged with increas-
ing intensity during the next two
months, it would cause no surprise if
the result was a temporary disturb
ance of Stock Exchange values,
Aside from politics, the situation is
somewhat conflicting, The process
of readiustment in Industrial and com
mercial affairs is making steady pro
gress; and though not by any
means completed, the general
situation can be accepted as safer and
sounder in consequence of the rectifi-
cation already accomplished. 1t is
hardly to be expected that the deran-
gements following so many years of
I uninterrupted prosperity can be salts
factorily adjusted in the short space
of seven months. Nevertheless, the
country is making excellent progress,
not only in recovering its equilibrium
| but in actual recuperation. Forum.
| ately our crop outlook is better than
a month ago. Corn has been making
steady progress during the past week,
and the outlook for a 100000 900
bushel crop is fairly reasonable, If
damage by frost be escaped. Cotton
is also doing well and should, if free
from frost, turn out larger than at
one time anticipated. 1t will be re-
membered that wheat has already dis
appointed the pessimistic prediction of
July. There is, therefore, now little
country is almost certain of securing
a fairly satisfactory harvest. AL
though prices are frequently lower
than a year ago they will yield good
profits to farmers. This probably ex
plains the continued optimistic reports
/ which come from the West, that sec
ton having steadily refused to serious
ly sympathize with the pessimisn
which has spread all through the East
The further west one goes the more
optimistic is the temper.
There has been a noticeable improve
ment in the banking situation at the
interior, resulting from the precau
lions enforced by bankers for the las
month or six weeks. Liquidation hal
not only checked unhealthy specula
ton in the interior, but has forced {
freer marketing of crops which haC
been held back for higher prices. Thi
was strikingly demonstrated by tn,
recent large increase in grain receipts
at primary points compared with
year ago. The demand for money I,
move the crops at the West and SoutI
has already begun, and henceforth tn
surplus reserves of the New Yorl
banks may be expected to decline a
Western institutions draw upon thei
balances in this market. Consiuern
the lessened demand for money ~
business and speculative purposes, tn
New York banks will be able to as
sumo their share Of the crop burde
with much less difficulty than at on
time feared, Firmer money rates ar
within probabilities, but indications d
not point to any extreme stringenc
either at New York or interior none
centers.
Owing partly to theimprovement 4
the monetary situation at New Yor
gold imports have ceased; the stiff
ening Of rates in London and the prof.
ability of an advance in the Bank q
England rate having put a further REF
traint upon our power to attract gold