The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-08
Crops as Factor

Henry Clews in his Saturdays review
says in part:
For several weeks to come the crops
will be the controlling factor in both
business and financial circles. At pres
ent the outlook Is not eminently salts
factory. The country needed, more than
anything else, bumper crops. Only one
crop promises to reach expectations, and
that Is corn. The condition of cotton
is exceedingly low, and the present out
look suggests a crop of not more than
the worlds requirements, considering
last years shortage. The output OF
wheat seems to be better than at one
time anticipated, but at best nothing
more than a full average crop can be
counted upon. According to present in
dications the farm value of our cereal
crops, based upon the latest government
estimate, should be about s3,00oOoo,OOO.
This Is slightly in excess of the actual
farm values reached last year, and is due
almost entirely to the promising outlook
for corn, the only important crop prom
Using a record yield. There is much en-
couragement in the fact that this all
important crop looks so well. Roughly
speaking, it amounts to about one-quar-
ter of our total agricultural products,
and enters into so many departments<of
commerce and industry that it is by
far the most important single element
in our national prosperity. Should we
raise 5000, 600 600 bushel crop, worth
about s., 600, 100000 to the farmers, this
will do much toward checking any Sc
rious business reaction. On the other
hand, even partial failure of the corn
crop might invite serious consequences.
Another four to six weeks must elapse
before corn is fully made. Fortunately,
the latest reports are very favorable for
a big YIELD Wheat, too. has been show
ing marked recuperative powers from
previous damage. All things considered,
the crop outlook is mixed and might be
better but still contains some features
of positive encouragement.
Perhaps the best feature in the whole
situation is the very decided improve
ment in monetary affairs. Possibly there
may De SOIle lOCdl otiii6thSJ VI oi'
turbance from over-extension of credits
in the interior, but nothing serious In this
respect is now apprehended. or certainly
nothing more than what the banks can
easily take care of. The financial situa-
| ton is now we'll under control. Bankers
are conservative and encouraging con-
traction. Our credit abroad is good
gold imports will continue; Europe has
aided us immensely by free purchases oil
securities; the eastern banks have great
| " strengthened themselves, and are per-
| fectly able to give needed assistance TO;
ma rlxeting the crops; so that there Is
no further reason for the apprehensons
which existed In the early half or the
year. Currency associations are being
formed in many states throughout the IN
terror, which will avoid any emergency
but, as no emergency Is now expected
their usefulness is not likely to be tested
| We thus find that the market Is working
under conflicting conditions but into
safer position. Forced liquidation has
about exhausted itself and the fact thai
security values are already upon such q
| low basis strengthens the probability Of
sharp rallies hereafter. Hence on pro-
nounced declines the better class OF Sc
curities should be considered practicall,
at bargain prices for investors; and, Il
the crops turn out well, there is reason
for expecting a substantial recovery.
1t is, however. still largely a crop mar
ket-for the present"