The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-12-28
MARKET LETTER
OF HENRY CLEWS
NEW YORK, Dec. 10, 1910.

ed appears to be bringing in fresh
buying of better character
Other factors have also contributed
message was well received, inasmuch
as it advised the cessation of at.
tacks upon capital and advocated
Strengthening of confidence in bust,
ness. This moderation of Govern
ment activities which undoubtedly
did much to make capital timid and
! aggravate unfavorable economic con-
! ditions was favorably accepted in
/ financial circles. Since the Presi-
dents message marked out no new
. programme of Importance it can now
be taken for granted that there will
be little if any important legislation
! III 1911, beyond providing for appro-
priations and regular routine affairs.
An important stimulant in the mar
ket was the continued ease of money.
! This must be attributed to slackness
/, of trade, a decline in values and
LIQUIDATION of speculative risks which
unquestionably released large sums of
money. For some time past bankers
, in all parts of the country have been
insisting upon conservatism, the re-
suit being contraction and retrench
ment in nearly every direction.
These eortffs were necessary and
wise; and as a result the banking
situation, though not yet entirely
E, satisfactory, is greatly improved, and
there is no longer any danger of the
crisis which it was seriously feared
would materialize about this time.
Instead of distrust and pending dis
aster we find loans contracting and
interest rates comparatively low not
only at home but also abroad where
reactionary forces are beginning to
manifest themselves. The strength
of the Bank of England at this time
is particularly assuring, as it renders
sold exports from this side later on
more difficult and will materially
facilitate the raising of much needed
capital for the completion of rail-
abroad just now are already quite
liberal.
Owing to the tendencies just allud-
ed to the stock market approaches the
close of the year under rather more
! favorable conditions than anticipated
Preparations for the usual year end
settlements and January disburse
ments are not likely to have any
serious effect upon the local money
market, and after the middle Of
January another period of cheap
money is to be expected. Fortunate
ly we approach the new year with
fairly good investment conditions;
prices of many good stocks having
declined to a point that will yield
good returns to the investor The
same remark applies to bonds, many
of which offer opportunities not like
ly to be repeated for a long period.
Certainly if We are entering an era
of cheap money, as seems inevitable,
many high class bonds will be taken
permanently out of the market. Re-
turns recently made public indicate
that stocks have been more widely
distributed during the past year, many
corporations having materially in
creased the number of their stock
holders. This suggests that the pub
lie has been buying stocks for per-
manent holding. AS the Floating sup
] ply of stocks in the Street" has
] diminished rather than increased 1t
follows that stocks have been going
! into the strong boxes of the smaller
I investor, where they will probably
I remain. This should assist in leaving
! the market in good condition for the
! new issues, which it is expected will
be shortly forthcoming Since the
I conditions just outlined Favor the
placing of bonds and short term OBJ
/ legations the inference is that new
1 financing will be largely on these
/ lines, and that little new capital viii
4 be raised by means of stock flotatior
4 Our railroads are greatly in need
4 of funds to carry out projected i'm
q provements, made imperative by
q ! growing traffic requirements. Success
] in the placing Of these issues will
" uAlhOhpANhiy pNAlilulabC BuollCbo elNNA-
] witty. Orders for rails and equipment
which have been held back for months
] will be placed, perhaps gradually, bu
Y with sufficient freedom to impart fresf
] life to the iron trade, which is nov
y running only little over half its full
] capacity Other lines of constructive
= work will also benefit; so that while
y many business conditions must still
\ be classed as unsatisfactory the out
\ look is for betterment, chiefly becaus,
of easier money. 1t is thus that liqui
d dation and lower prices pave the wa,
d for a fresh forward movement.
q The most serious uncertainties o
q immediate importance are the actio
q of the Interstate Commerce Commits
q sion on railroad rates, and the pend
y ing Supreme Court decisions upo
= Oil and Tobacco cases. Recent rail