The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-01-09
OUTLOOK BRIGHT
FOR COMING YEAR

run GUMLN6 Tim
NEW YORK, December 27.-Unusuai
prosperity is predicted for 1911 by
Orion Howard Cheney, State Sqperin-
tendent Of Banks. Mr.. Cheney bases
his forecast on The general banking
and financial conditions prevailing
throughout the State.
He says: "My annual report, on
which I am working day and night,
shows that all classes of financial in
situations, over which the State SUI
perintendent has jurisdiction, are in
very prosperous condition. believe
it logical to assume that, with the
banks sound and in a highly prosper
GUS condition, all other branches of
legitimate business must likewise be
successful.
"The banks have not only earned
good income during the year about to
close, but large SURPRISES have been
accumulated, and there seems to be
more pronounced feeling of security
that has existed since 1907"
AXSRESHSB=ESNElISHSESHSESW
The downward tendency of commo-
i dities and slack trade will, however,
tend to stimulate exports and dis
, courage imports AS already stated,
we are at present selling securities to
Europe with more freedom than usual
and these facts should tend to prevent
any premature or excessive gold efflux
! during the early months of 1911. The
! monetary situation abroad is also
favorable. The Bank of England is
expected to reduce it's discount rate.
So, too, is the Imperial Bank of Ger
many. In Paris money is abundant,
I and the year closes with the worlds
|
American requirements for new cap
ital are still very pressing, and unless
all signs are mistaken, the next few
weeks will witness considerable offer
ings of new securities. Our railroads
are especially in need of funds to car
ry out projected improvements and
will if possible make large demands
upon new capital supplies. Their
ability to finance new undertakings is
largely dependent upon the treatment
they receive at the hands of the Inter
state Commerce Commission. Fortu-
nately there is every reason to expect
that they will receive fair considera-
ton and be allowed to make some adj
| vances in rates. The situation of the
railroads is anything but satisfactory.
Traffic is already beginning 10 decline
and some of the Western roads are
,curtailing their service and enforcing
various economies. In view of the
heavy increase of expenses the future
is one that will require considerable
skill and patience on the part of rail-
road managers. The increase in LIE
high Valley dividend from to 10 per
cent did not excite any enthusiasm
That road is exceptional in its condi
lions and management; therefore is
no criterion for other properties which
may have difficulty in maintaining
present rate of dividends The stocH
touched 1870, but chat is no higher thar
it sold on a per cent basis The
: policy of raising the dividend at this
= time was at least questionable, con
} sidering the general railroad situation
There are some who think it would
have been better judgment for thu
company to have shown some favor t
: shippers as we'll as stockholders.
The close Of the year finds genera
business in very quiet condition
Conservatism prevails everywhere
The steel trade is still running a
about one-half it's capacity in the cru
r der forms and there are no signs o
! early revival in sight. Everything de
5 ponds on the railroads. Possibly
!. the latter place their bonds satisfaC
l tority, orders for cars. equipment. etc
3 will be forthcoming. The textile trade
are also quiet and efforts are bein
: made for general and concerted cm
u tailment. There is nothing unsoun
in the situation, but a gradual settlin
down process has begun, which mus
run it's course before real recovery ca
be expected. Economy is now bein
practiced not only in business, but a
the home, and in nearly every dire,