The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-09-15
MARKET LETTER
Of HENRY CLEWS

to Sl3C,O0OoOOO. compared with 1884.
10000 In 1909, which was the banner
year Il certainly will not be charged
that speculation in Wall Street this
year has been reckless or excessive.
These figures prove that operations on
the Stock Exchange for the last eight
months have been conducted upon a
strictly conservative basis.
The political campaign which has
aroused no little concern is now fairly
under way, and the issues are clearly
defined During the next two months
we may look for a great deal of heat.
ed discussion; and through the smoke
of political battle it will not always be
easy to discern the final outcome.
Nevertheless, the recent declarations
of President Taft and Mr.. Roosevelt
have clarified the political horizon and
| served to make the issues plain. The
tariff, the regulation of corporations
and the important question of railroad
rates are now the ruling issues and
| their agitation must leave a certain
oned with. Nevertheless, there is
nothing alarming connected with any
of these problems. 1t should not be
| forgotten that action always runs on
more conservative lines than agitation
| We are now in the period of disturbing
agitation, which apt to excite and
mislead those who lose their balance
When it comes to positive action, con.
servatism will unquestionably rule
and those who in a spirit of vengeance
seek to destroy the tariff, or the trusts
or the railroads will not prevail. It is
easy to take an over-sensitive view re
| garding the problems. Politics may
overshadow the outlook for some time
to come, but the probabilities are that
justice, order and good sense will rule
in the long run.
Referring to President Taft's recent
tariff letter urging downward revision
through schedules considered separate
| ly, the idea is not a new one, although
very good one. 1t was advocated
by me over two years ago in speech
made before the annual convention
of the American Bankers at Provid
ence, r. l., July "a, 1908, in which
said: 81 am one of those who believe
that the best interests of this country
demand that the tariff should be sim
plifed and gradually lowered, say one
schedule at a time, with six months
notice of any important change in it.
This would enable importers to pro
! tect themselves sufficiently to avoid
loss on their previous .importations
! The reduction of customs duties on
commodities and articles of general
consumption would obviously reduce
the living expenses of the people
which are now so great as to be the
chief source of the discomfort of la
Dor"
One of the most important uncertain
ties which lately threatened the secur
ity markets has become a matter o.
history There is now little or no dan
ger of any serious monetary crisis this
fall. Owing to the warnings ISSUED
months ago, and the precautions taker
in consequence, the money situation is
really far better than could have beer
expected. The interior banks will b.
able to meet crop requirements will
little assistance from New York fur
Their than simply utilizing the balances
which belong to them. The forced Ii
quotation of the last two months has
accomplished important results. Fin
anciers, manufacturers and merchants
alike have each been obliged to liqui
date and shorten sail. The process
was unpleasant, and in many cases in
volved severe losses, but the results
are beneficial; and as a result it il
safe to say hat the financial and bust
ness situation in the United States il
much sounder than it has been at an,
time since the panic of 1907. Firm
rates for money are probable, anC
even desirable as a restraint upon i'm
prudence, but the supply of loanablC
funds is quite abundant for all legiti
mate purposes. Any outbreak of ex
cessive speculation would probably
meet with a prompt check by tn,
banks, and if conditions continue az
satisfactory as at present, gold i'm
ports may be renewed at later date
Another element of uncertainty thai
has largely diminished is the crop out
look, which is also proving better thar
anticipated a month ago. The only
real disappointment in this respect is
cotton, the estimate for which varies
from eleven and a half million tC
twelve million bales a crop of al