Semi-weekly herald., 1911-11-02
BUSINESS OUTLOOK BRIGHTER.

That recognized authority on the fl
nancial and economic situations in the
country, Henry Clews, the New York
banker, presents some undeniable
facts in his current weekly financial
review to show that the business and
financial conditions prevailing these
days are not nearly as dark as the
pessimists would paint them.
"a moderate degree Of improve
ment has taken place in the financial
markets." he writes, which should
make further progress if nothing un-
favorable intervenes. The most pow
erfui influence upon values at present
is the abnormal plethora and ease of
money. This is usually a period of
approaching stringency owing to crop
demands and activity in trade. Quiet
ness in the latter respects causes
funds to accumulate, hence our ability
to lend many millions, abroad
when under ordinary conditions, we
should be considering gold imports in
stead of gold exports. Such an un-
usual condition in the money market
when banking conditions are general
~ sound cannot but have a strong
supporting influence upon security
values.
"Another satisfactory feature in the
situation is the continued expansion
of our export trade. In September
our agricultural exports amounted to
s95, 100000, the largest September on
record, and more than 14,000,000 in
excess of this time last year. This
creation of large export surplus is
the natural result of lower prices and
has brought our foreign trade back to
normal position, thus further
strengthening American credit abroad
and enabling us to recall our loans
there whenever necessary.
''There is one other satisfactory fea-
ture which should not be overlooked,
and that is the more reasonable atti-
tude Of our industrial leaders toward
the mandate of the supreme court re-
garding monopolistic combinations.
These gentlemen are now taking a
calmer view of the situation. They
recognize that obedience to the law is
imperative. They recognize also that
real property is not going to be de-
stroyed. Later on they will learn that
the restoration of the competitive ba-
sis and the check to monopolistic pow
er which has recently been applied
will place them in a much better at
titude toward the public and save
them from many of the Legislative at
tacks which have been so disturbing in
the past. In some cases abnormal
profits may be curtailed, matter
which will be of benefit to the con-
sumner. But the consequent loss in
dividends will be no greater than
might be anticipated at any time from
trade reactions, and nobody believes
Othci WISE tldU tiidl lutSt kItdt OT-
ganizations will be abundantly capa-
BILE of securing their share of the
country's business upon a reasonably
profitable basis. Our monopolistic in
dustries have always been exposed to
popular hatred, and the removal of
this drawback will eventually prove
beneficial and aid the stability of such
investments.
"lt is not to be assumed that the
busines outlook is roseate in all re-
spects. There are still important
drawbacks to be considered. The po-
litical situation is not entirely sat
isfactory and the country must be pre-
pared to meet some rather bitter and
aggressive campaigning on the tariff
and antitrust questions. While the
latter has been greatly clarified by
the Standard Oil and tobacco cases,
the feeling in the west against cor
porations, both railroad and industrial,
is still running very high, and will
express itself in more or less denunci-
alton and legislative attack, particu-
larly within state limits. The feeling
on the tariff is equally high. There
il nothing new, however, in this rad
ical sentiment. 1t has already been
largely discounted, and Mr.. Taft's
speeches in the west must have had
scme important effect in toning down
extreme views"
Mans days are numbered, but no