The Washington herald., 1911-05-01

new York, April S0-lt IS question
fairly open to debate whether the warm
er and for the most part lighter weather
over the whole northern half of the
country east Of the Rocky Mountains
was not in and Of itself alone the dirett
cause Of the Improvement witnessed last
week, both in the stock market and in
general business sentiment.
True, the Improvement was not ex-
traordinary, yet. every day security
prices were higher than on the day pre-
ceding. and an undercurrent Of greater
optimism was visible In trade circles.
As time goes on a greater number Of
people seem to be impressed with the
fact that after all the most potential
element In the business and financial
outcome this year is to be the crops
rather than matters relating to politics.
Supreme Court decisions. or legislation
with vast sums Of money standing idle
In our banks awaiting investment, and
with reduced stocks of merchandise every
where. 1t seems hardly possible that busi-
ness can avoid enlivenment IL as the year
progresses the country.s harvests prove
abundant. 1t is, therefore. a circumstance
OF the utmost Importance that the month
OF April. one of the most formative
months OF the year as regards crops, has
not only been safely passed. but that
climatic conditions in this time have been
according to universal observation. Of a
more encouraging nature than any known
In recent years,
Bonds Are Strong.
The course OF the bond market last
week is more properly a subject of
financial attention than that Of the
stock market. There was distinct re-
naissance Of inst..s-uonal buying Of short
term notes. bonds. and investment issues,
and this was again due. OF course. to the
restlessness Of the huge amount Of capt.
tai that is now standing unemployed.
Bankers say that short-term notes have
been advanced to such a high price that
the yield therefrom is no longer partic-
ularly attractive. and that there Is q
turning Of demand once more to bonds
Of so-called old-fashioned character.
New high record prices were made for
the new New York City bonds, the Lake
Shore IS. and for other prominent issues.
There are some signs that within a short
time the governments long expected
So,000,0c0 Panama Canal bond issue may
be forthcoming. and an event Of the
greatest fnacial interest and Of far
reaching character will be the relative
degree OF success or failure which attends
this offering. If full price should be
obtained for a large issue of United
States securities netting only per cent
interest and devoid OF availability as
basis for banknote circulation. the in
cident might we'll serve as a financial
and business turning point.
Whatever, may be the result here, a
matter for qualification last week was
the indications afforded that the railroads
were making headway in the work of
getting control of their operating ex-
penses. Decreases in railway gross and
net earnings have been the rule for some
time past, but the railroads did not real
ly begin to practice economies until the
Interstate Commerce Commission refused
them permission to charge higher freight
rates.
Economy Results.
The consequences Of this economizing
are now beginning to make their appear
ance. Decreases in gross revenue are
still reported, but decreases in operating
expenses are SO much larger that the
railway net showing is improved.
In strictly speculative circles last week
a good deal of attention was naturally
paid to the United States Steel Corpora
tion's statement that net profits in the
first quarter of the year were smaller
than in the December quarter last year,
an increase had been rather
generally looked for. Wall street remem-
bered, however. that after new orders
have been placed with the steel mills 1t
takes time for these orders to assume
the shape of earnings, and that as the
steel business did not begin to pick up
until January the earnings for the first
months Of the quarter did not reflect
the improvement in business that had oc-
Cured. It Is no doubt true that in the
last month the steel business has once
more fallen Off to some extent, as has
trade over the country as a whole.
Both trade in general and the steel
business in particular are likely to be
governed In the future, as in the past,
by Identical influences, and the chief one
Of these influences will in all probability
be the country's crops. One wonders
sometimes II the not overwhelming his
tory Of American enterprise and foresight
In this regard is once more to repeat it.
self-that Is to say, II the railroad inter-
ests OF the country and other large con-
sumers of steel and similar manufactured
products will have occasion some time
hence to look back to the conditions Of
to-day and lament their own fearfulness
and lack Of belief in their country's fu-
ture.
90 ~