Bisbee daily review., 1911-05-18
HENRY CLEWS HAS NOTE OF OPTIMISM
 ABOUT THE OUTLOOK
Hard Times and Panicky Conditions Cannot Last;
 Crop Outlook Fine
STIMULATION EXPECTED

NEh YORK, May l1-Nith the Trust decisions out of the way, the outlook can hardly be viewed in other than a most favor aEJe light. It is true that ths eur rent tariff legislation has not yet assumed a definite trend. but it will simply be repeating precedent to say that whenever such trend be- comes available-and it must in the very near future-it will not take the stock market long to fully dis count the Improvement in general business that will necessarily ensue. Recently we have been going through a protracted period of business ana industrial recession which means that consumers have been clearing up sur Eus stocks of merchandise in nj the various channels Of manufactur- ing and distribution that from tee mill down through the various han dlers end with the retailer. When the improvement which must even tually come does begin, it must as sume a spectacular impetus. all the more active because of the accumIil- ated demand.
 Cannot Stand StDi.
 This country is not one to stand continued depression. Its natural re sources have as yet only been scratch ed: its farms and it's mines produce each year a volume of new wealth that cannot fail to prove invincib'e in the direction of encouraging en- thusiasm, energy and progress. And this new wealth constitutes the foun- taip-head of a natural cycle of deveE opment that applies to all branches of finance, trade and industry. De pression under such circumstances IS largely a matter of temporary senti- ment. In dull times people prerare for curtaiIment and are not incinea 10 any way risk their principal, which is their share of the capital that is So necessary for the normal development of our great country. But as soon as business and industry begin 10 expand, confidence quickly follows in the wake, and 1t does not take long for the savings of the people to seek employment in the security markets, and thus provide the capital which our railroads need for their proper upkeep, improvements and extensions. The railroads in their turn are by far the largest customers of the iron and steel industry. When that in- dustry in sequence becomes active and profitable. the natural order Of events is for these favorable develoD- ments to spread automatically to all the other branches of the financial and industrial family. The financial upheaval Of 1907 started more es- s~TT lF hn TTn of the railroads to obtain the neces- sary new capital to finance the gigft tic improvements that under the stim- ulus of the unprecedented period of industry and mercantile activity was then in progress. To a lesser degree the current recession in business must also Oe attributed 10 the ind-s- position of our railroad managers to go into debt to purchase supplies in sufficient quantities to keep our iron and steel mills fully employed. Th' increased cost of operation. espee- ially labor, made it necessary for the raj oads to advocate and dene1- upon higher lates for transTortin- merchandise: and their failure to O. tain such increased revenue came as a blanket upon investment sentimen' However, there is already strong owl dence Of a reaction in what is ponn lar1y termed the high cost Of living and this must eventually reach ra1i road operation. Food and raimer' are much lower, iron and copper arr cheaper. and labor. while maintain fng the bigh wage scales, is never theless much lower Ter unit of meas urement, since, under current cond' tions, there is a degree or direct ef ficiencv that means more work for days pay. When there is not sun cient work for labor. it is the idle~ and the interior workmen who sui fer. thus there is constant incentive for each man to do his utmost ff hold his position. In the long rrT the failure or the railroa's to obtoil hfaber rates will Dcccssari.v tate in favor Of s1areh oilers. for there is sufficient ingenuity in our ra,irc9 managemeut to adapt tbeir eGSrs e compulsory conditions. To ccrter extent OFT railroads were imbue with the spirit Of eEtravagance that comes so easily when boom tines are with us. This extravagance will now be curtailed, labor has received a nee [ essary check and the railroad sitHf ton as a whole may be regarded af ] having entered upon a much sounda' ! stage. which can hardly fail to E spire confidence among investors
 Crop Outlook Excellent
 But rsverting once rnore to imme diate influences we have re3chei thf | stage where we are art to feel tNf stimulative influence of favorable | cro9 rerorts- The government crop l report published Mon5av i-Aira-e' harvest of 4s9, ,325. 900 bushels winter wheat, which, if maintainef, vii | mean with one exceution a high re I cord from our winter wheat area Corn and spring wheat are enioyirs favorable planting con ditions.
 The view that 1t is desirable to take of the stock market at the uon'eni s the broad view. The bond market s already slowing that ir'nToVe- neut in investraent demand has be zun. an4 as this denand increases fl will first sryead to the purely in- vestnent stocks and then will be-