Omaha daily bee., 1911-02-05
OPTIMISM RULES THE MARKET
Many Solid Reasons Exist for the
Better Feeling.
GOOD CROPS BRING BIG MONEY
Merchants ana Professional Men Get
SHARE tn the Prosperity OF the
Farmcrs-BiR Fiuapcters
Are Hopeful.
IN PREsroN c. ADAMS.

BY PRESTON C. ADAMS.
NEW YORK, Feb. t--tspcclal to The
Bee.D-The second month in the new year
opens with a decidedly more optimistic
feeling in business ana financial circles,
ana there rs reason In tact several OF
them. The crops have been made, gathered
ana sold; tue farmers ana the interior
merchants and professional men dependent
upon them are prosperous and happy. They
have money and are spending &C.. This in
eNtaby reacts on the big distributing CEN
tiers and transportation companies, and
they, too are beginning to take a brighter
view OF the future
Our foreign trade returns have had no
slight influence upon responsible bankers.
The December exports reached the un-
paralleleo total of $22ild5,UuV, and this, fol-
lowing 1907 zee ,00l in October and &O6.620 zoo
I In November. served to turn an excess Of
imports into a baiance OF exports to Ts
amount Of $Sol,604 900 for tho calendar year
The 1910 shipments totaled SlS04,4ll. CO., or
less than $50 OOOOOO below the high record OF
1870, while our aggregate foreign trade for
the twelve months reached S3t2J,sl9,OO0 Tor
the first time In our history.
OF course, these returns must be consld-
cred in conjunction with collateral circum-
stances; unusually early shipments OF cot
ton at extremely high prices were account
able for an abnormal share OF the eN-
pansion In exports during the final three
months OF the year, and naturally only a
comparatively small amount OF the staple
remains 70 go forward.
Yet the tendency Is now In the right di-
ERECTION, aud as Europe is taking our securl-
ties, there Is scant danger OF embarrass-
ingy heavy exports OF gold during the next
two months
Financiera Hopeful.
1 Our financiers are also more hopeful con-
corning the forthcoming decisions OF the
/ Interstate Commerce commission and the
supreme court. Lawyers who have closely
1 followed events in Washington state that
several signs have been discernible that
the reconstructed supreme court Is more
inclined TO bring out points that might
I have favorable bearing upon the de-
PENDANTS position than was the case during
| the original hearings.
/ AS for the question OF railroad freight
rates, II may be stated that the granting
| of moderate concessions will probable be
received with good grace by the railroads
and that there will thereafter be mani
/ tested strong desire TO stimulate re-
! sumption OF business activity, especially "
/ In the meanwhile large amounts OF new
capital have been raised for extensions,
/ improvements, equipment etc.
! II Is to be feared that Acting Secretary
of Agriculture Hays was right when he
/ said recently: 1T is useless to expect that
| there will ever be return to the old low
standard o. prices. Conditions In the
country have changed. When the latest
statistics are given out by the census bu-
| reau II viii be found that the value OF
! agricultural lands has gone up. This may
be surprise to those who talk about the
deseruon of farms for the city, but it Is a
/ fact nevertheless"
Fear perhaps is not the right word TO use
I IN this cOnneCtlOn, Tor Wnen incomes du-
/ just themselves to these new conditions as
! they must there Is no cause for fear
Cut In Salaries welcomed.
! Stockholders win not complain over the
! reduction in the salary of the Steel trusts
president from 100000 to S5O,OOO per annum.
which Il couidn't-it would be found that
a very small percentage Of those owning
| steel stocks have an income of one-tenth
of this sum. The salaries of heads of cor
nOratlDna and financial inatltutlOns haNa
not been increased in anything like the
same ratio as the wages OF the ordinary
employees Indeed, one organization which
formerly held the record In the way OF
paying enormous sums to its head officials
has systematically curtailed it's expenses
in this direction. Very few men In the
! United States, or elsewhere Tor that matter.
receive more in salary than the new presi-
dent of the Steel corporation is to get
stood TO have been that received by John
Hays Hammond from the Guggenheims.
MIR. Hammond earned a reputation as a
mining engineer In California, and then, in
common with many others there. he
4 graVitated to the newer gold fields OF the
Witwaterstand. Here he quickly rose to the
very top of his profession, and II was
commonly understood on the Rand that
while there he made a comfortable fortune.
Troubous times broke out when Or:
Jameson ventured upon his iI-starred
armed revolt against the KrLSer regime.
and Mr.. Hammond was actually sentenced
to death and placed In prison 10 await
execution. Tremendous influence was
brought to bear. however, upon the Trans
vaal government, not only by the United
States but by Great Britain. ami finally
MIR Hammond was released after a large
sum had been paid by way OF a lansom.
Thereafter he betook himself to his native
land His record as skitful engineer had,
OF course preceded him. and in the course
Of time he was placed In entire charge or
all the field operations OF the GuggenhNim
companies. His salary. It has ALWAYS bt on
understood, was S250,000 a year, Perhars
this may be an exaggeration. but that the
figure was abnormally large can be &C
cepted as a fact.
Nevada Mines Pan Well.
Nevada mines produced s40.o00,OOO in 1910
and paid dividends aggregatlng Sll, 900, 6ib
The production is gain OF 100000 when
compared, with 1909. Three-fourths the
Tonopah and Ely. the first named turning
out gold to the value of 81, $4,000 and Ely
producing $9,OOO,OOO in copper. Tonopah, s
production of gold and silver ore exceeds
10 900 900 in value and the remaining 1000
900 or so is divided among the lesser camps
of the state.
New Securities In lunches.
The foodgates are being opened and new
securities are pouring forth by the mil
lions. New Haven has without the slightest
fuss sold $100O0.OO0 short term notes Sea
board announces a S19.OO0,0O0 offering Of 4
per cent bonds. American Telephone has
disposed OF $40. 900 600 Delaware a. Hudson
yesterday received permission TO sell 81 .0OO,-
0O0 and several minor issues came. 70 light
and others OF greater amount are known
to be pending.
| While of course. Il Is the proper thing
10 talk very optlmlstically about the state
OF the bond market, the sober truth would
appear to be that the demand heretofore
has been chiefly from investment houses
or Wholesalers, who so far have done only
| a moderate business with what might be
called ultimate consumers. In other words
hopes have exceeded actual results But a
better time Is believed 70 be near at hand
now that money Is not wanted for specula-
tive or strictly mercantile purposes
Heavy Interest and Dividends
Investors viii receive during the coming
month the sum OF S906s5,312, representing
SiSbnrsements i'm the shape OF interest and
| dl,yidends 10 be paid out by railroad In
dustrlal and traction corporations. These
f,gtlres compare with 81 1885, sSS In February
a year ago. This total is large, coming so