The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-03-27
CleWs' Letter

New York. March 25.-The better
undertone noticed in these advices dur
ing the past two weeks is making slow
but certain progress. Notwithstanding
the dullness in business there is a dis
tinctly more cheerful tone in financial
circles. The main influence contribut-
ing 10 this change is the abundance of
cheap money. In all parts of the
world there is plethora Of idle funds
at low rates. and this is especially true
In the United States. To a limited eX-
tent this is "a result of continued large
gold production; but it is mainly due
10 the inactivity of business and specu
lation. which causes funds TO accumu-
late. and To a decline in commodities,
enabling a given sun to go further.
The greatest accumulation of idle
money is at New York because inte-
rior banks force their surplus upon
their New York correspondents in the
hope that the latter may be able TO
ind employment even at low rates. At
the moment there is a good deal of
nearby money in New York. which is
not likely TO be required for the next
three or four months. Europe owes us
large sums on account of security pur-
chases and in payment for our exports
and under present conditions it pays
better 10 allow these sums TO remain
abroad as loans. Later on in the year
when the interior begins to withdraw
it's funds from this center then. If not
sooner, we may expect gold imports
upon a liberal scale This week cur
rency shipments to the interior have
been on a more liberal scale owing to
preparations for April settlements, af-
ter which these funds will return to
New York.
During the eight months Of the fiscal
year, or up 10 March 1, our foreign
trade showed an excess in exports over
imports of $41S,O0O,OOO. compared with
an excess OF $1SS 100000 a year ago.
| This Is a turn for the better of $780,
600, 900 i'm our foreign trade balance; a
| change of almost startling and GER
tainly very encouraging proportions
Conditions are such as 10 favor con
| tinuation OF this tendency. for commo-
dities are declining here and tending tc
rise abroad; a situation which natural
~ discourages imports and stimulates
exports. In the two months Of Janua-
~ and February our exports wer,
}1O4, 900 600 larger than in the same
.wo months last year. and left a trad,
balance in our favor Of $l27OOO,OOO.
Crop reports with few exception,
are of a satisfactory character. Th'
winter has been favorable one 70
both the soil and winter wheat, lib
eral covering of snow and plenty o
moisture having done thus far all tina
nature can TO secure the next harvest
All indications point TO a liberal in
crease i'm acreage Of our principa
crops. also marked increase Of car
In cultivation. The farmer equal
with the manufacturer will now h
| obliged 10 consider efficiency and econ
)my; only in his case intensifcatio
will be the policy, the object being {
secure larger product per acre alon
with higher degree Of quality.
1t will be argued by some that bus
ness reaction. tariff agitation. Supren
3 Court decisions and other unfavorab
conditions with which we are all fam
lar win prevent any Improvement
he stock market. There is one rep
o this argument, which is that the
onditions have been known T,
months and are thoroughly discounte
rhey no longer have the effect up,
market opinion which they once Ia
Z FOR months wall street has been 4
most pessimistic spot in the countr
md this when business and industri
tctivity was at its height. The tru
that Wall Street was then discoun
ng in advance situation which
, now generally recognized. IL may n
,e pleasant. still Il is proper 10 call O
d fention To the fact that Wall str,
r was correct In its representations.
{ loubt IL is equally correct In now g
h suming a more hopeful attitude.
h, To-day Wall Street is unquestional