Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-02
MANY REASONS FOR OPTIMISM
Business Men Look for Very
Healthy Fall Trade,
ONE DEMONSTRATIONS OPINION
BiE Trade Balance In Our Favor,
stocks Of Merchandise Are Low
and the Iron and steel
Market is strong.
BY PRESTON C. ADAMS.


BY PRESTON C. ADAMS.
NEW YORK, July, Especial to The
Bee. )-what are the legitimate grounds
for the unquestioned optimism in the world
of business7 1 asked this question the
other day of a man OF large affairs, and
who is himself buoyant optimist
His answer lie worth consideration
There are at least a score Of reasons"
he said. why we may expect big healthy
business in the fall. Here are a few OF
them. Unless ali signs fail we will havo
bumper cotton and grain crops and they
will sell perhaps at somewhat lower prices
than have been prevailing but still at rates
which will give tho producer q good
profit Then we have a half-billion dollar
trade balance in our favor which gives
us power over the worlds gold supply
and will prevent disastrous money strin-
gency in this country. There is little fear
OF this, however, in any event for money
IL plentiful and cheap in all the worlds
financial markets and this itself is
powerful factor for good trade.
The low stocks OF staple merchandise
means activity among the manufacturers
and an increase in the consumption ca
pacity of the working masses. The rail-
roads are showing increased earnings-and
these will be further increased as the crops
begin to move.
THE metal markets, steel and copper
particularly. are In better shape than they
have been for some time and there is no
reason to believe they will not continue
to improve. l might 60 on and give fur
Their reasons for the faith that is In me,
but 1t would be merely accumulative Yes
sir. believe business is going to be fine
in the fall and the whole country will be
prosperous"
Government Debt Figures.
1t is figured by government experts and
bankers generally that the addition of the
S50.OOoOOo issue OF the Panama canal per
cent fifty-year bonds to the bonded indebt-
edness of the United States has swelled this
Indebtedness to 1893 100000 Of which $751;
100000 draws interest at per cent sl14,-
100000 at per cent and tlls,OOoO 900 at 4
per cent. Most Of the government bonds.
with the exception OF the latest ISSUE are
held by the national banks which are using
them as the basis OF note circulation. The
banks cannot use the new Panama 3s for
note circulation, but they may employ
them as security for public deposits. The
national banks which receive allotments
stitute them for the bonds now unlying
government deposits and will substitute
the latter bonds for some Of the issues
now used as a basis for note circulation,
thereby releasing the bonds hitherto en-
ployed for note circulation. which may be
sold at a material profit
1t is understood that the next move in
the governments financial affairs will be
the refunding of the Spanish war loan,
of which $SlOO0.OOo is still outstanding. II
is considered probable that this Spanish
war loan. will be refunded by another
issue OF per cent bonds some time within
the next two years.
America nizatiOn of Canada.
In discussing Canadian reciprocity IL
should not be forgotten that Americans
have invested not only some 10000 Ameri-
can citizens in Canada, but more than
500. 100000 OF American capital Just how
much faster the Americanization of Can
ada will proceed after reciprocity is a
matter OF pure speculation, but II is very
greatly accelerated, it will not be many
years before the western part of the Do
minion especially will be largely Ameri-
can.
wheat Exports Heavy.
Exports OF wheat for the commercial
year ended July l. 1911, are expected to
reach a total OF $780, 900 bushels, allowing
100000 bushels for the three weeks re-
naming. This includes exports to all the
leading countries. to which last year $780,
CSC, 900 bushels were sent, compared with
$50. sos. 900 bushels in 1sOS-Os and 494, 1OsO 900
bushels In 1So7-Os. This year exports are
nearly 16O,000OO0 bushels larger than the
average for the preceding years, or an in
crease OF 20 per cent.
Wall Street Deserted.
Summer has come In Wall street Stock
exchange houses have sent out notices
that branch offices at holiday resorts are
now ready for business. The financial dis
trict is so deserted during the summer
months that brokers do their best to follow
customers. Go where he will, the Wall
street man finds himself within range OF
ticker. Even the most exclusive re-
sorts have their luxurious offices In hotels
or other business buildings. And of course.
1t is useless nowadays to try to flee from
the sound Of the ticker by going to sea- for
wireless has checkmated that move. Yet
despite all the maneuvering OF brokers or
ders are and have been extremely scarce.
Nor is II at all certain that the newly
opened branch offices will be overworked.
Southern SpinHers Careful.
The cashier of leading national bank
OF the city, which has extensive connec-
lions with institutions throughout the cot
ton belt, In referring to the manufacturing
outlook in the textile districts OF the south.
said:
Even though the mills are running only
rs per cent Of their capacity. that is by
no means bad business. on the contrary,
when you take into account the fact that
only few years ago mills now active
were equal to the total then in existence
there, you realize that cotton manufac-
turing is not in so languid a state as many
would believe"
Nevertheless. the disposition Of southern
mill men is to curtan still further. Some
are hating between the plan OF shutting
down altogether and that OF running on
four-day a week schedule. Many Ala
bama mills are continuing on this plan.
One result OF doing so is to reduce their
stocks of goods on hand so as to have
practically clean warerooms whenever the
trade nDroysa annu0h 10 call fnn Iargor