Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-03-20
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HENRY cLEws' WEEKLY REPORT.

HENRY CLEWS' WEEKLY REPORT
A much better undertone has devel
oped on the Stock Exchange. Nothing
contributed more to this Improvement
that the worldwide ease OF money
Loanable funds are abundant every
where, especially at this center, and
at exceptionally low rates. Some
slight settlements, but this will be
purely temporary and low rates are to
be expected until the approach of our
next harvest. Along with this pleth-
ora of money goes material easing
of the credit situation. Good borrow
ers have no difficulty in finding all ne
cessary accommodation. Under exist
ing conditions it pays better to put
money into good investments paying
4 IL or 6 per cent than seeking en-
ployment for money at one-half those
rates. Many financial institutions
recognize this situation and have been
charging their holdings of good
stocks and bonds. While these condi-
tons last it will be difficult to keep
stocks at their present level, provided
misfortunes do not intervene.
A favorable feature is the steady
Improvement of the bank situation as
shown by the last bank call from the
Comptroller at Washington. In New
York deposits have gained over 200,-
100000 since the call two months
ago, while the Chicago banks report
ed a gain of over S7O,000,000 during
the same period. The loans at New
York increased during this period
$124, 100000 and at Chicago $30,0o0,-
900.
Another important feature Of slow
but far-reaching effect is the improv-
ed situation of our foreign trade. Our
exports are rapidly returning to nor
NAL and healthy conditions. In Feb
ruary our shipments abroad of mer-
chandise aggregated $176,O00,0O0, a
decrease of $S,4OO,0OO compared with
last year. This meant an excess of
$54.OOO,000 in exports as against an
excess of $5,50O,OOO in imports in 1910
and an excess of $4,000, in exports
in 1879. This is certainly a most en-
couraging exhibit, and has immensely
strengthened our credit abroad OF
the total exports in February $SS,000,-
600, or one-half of the whole. consisted
of food products, mineral oils and cot
ton. A year ago these articles amount
ed to only $5O,00O,O00 in value. The
bulk of this increase, however, occur
red in cotton, which was valued at
s5S,000,000 in February, 1911, COM
pared with $24.Ooo,00O in 1910. Our
dependence upon single article, such
as cotton, as an export is perhaps the
least desirable feature in the foreign
trade situation, Because cotton ship
ments must soon decline until the
next crop begins to move. Yet the
increase in breadstuffs from $1,000
900 in February. 1910, to 81 ,Oo0, 900 in
February, 1911, must be accepted as a
satisfactory sequence OF declining
prices; and it is also to be remember
ed that our exports of manufactures,
especially iron and steel, are steadily
expanding.
Still further evidence that the need
ed economic readjustment is progress
ing will be found in observation of the
tendency in commodity prices. The
latter show persistent dropping
tendency. Bradstreet's index number
has declined over IL per cent during
the last fifteen months, while index
figures abroad are rising, showing that
foreign markets and our own as ap-
preaching more common level. For
months prices in this country were
much above the foreign level, hence
our heavy imports and light exports.
This readjustment is coming about
naturally through liquidation and low
or prices here, accompanied by some
advances in Europe. The heaviest de-
clines in the United States have been
in breadstuffs and provisions, thus
affording some relief in the high cost