Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-11-04
BUSINESS NOW
UNSATISFACTORY,
CLEWS' Comment

Henry cIews says in his latest mar
ket letter: " "a. S &,
NEW YORK, Oct 25.The advance
which began week ago was too
rapid to last and ended by bringing.
on a fresh selling movement There
is no denying the fact that financial
sentiment is more or less depressed,
and that impartial analysis of the stu
alton shows very plausible reasons for
this state of feeling.
The credit situation the world over
is unsatisfactory After several years
of intense activity in England, Ger
many, France, India, China, Japan,
Canada, etc, there are multiplying
signs of contraction and trade reac-
tion. The weakest links in the chain
are the first to give way, Brazil and
India being the latest points to exhibit
indications Of unsoundness. The panic
at Bombay, though not serious, arrest
ed attention as a general symptom.
The financial strain in Europe has of
course been intensified by the Balkan
war and militarism. No collapse hap,
pened, because of the steady restraint
on credit imposed by the European
banks. The great financial institu-
tons of Europe, however are still
bent upon strengthening their re-
sources. and financial prospects on
the other side are anything but sat
isfactory. There is still an enormous
pressure of new. capital issues, suf-
fcient in fact to have forced London
bankers into a concerted movement
for Withholding the same until more
favorable opportunities, At home the
money Situation while improving Is
far from comfortable, the restriction
of credit provoking a good deal of
complaint in commercial circles Had
1t not been for the timely aid offered
by the secretary of the treasury we
might even now be facing financial
crisis. which happily has since disap-
peared
Business conditions in the United
States are not encouraging and there.
are SYMPTOMS of slowing down in
many directions This is partly due
to the contraction of credit. and partly
to loss of confidence, which imposes
restraint upon all new enterprise
and expansion. For this Washington
must take considerable blame; the
radical tendencies in evidence there
being an effectual check upon conf
dence.
'.On the favorable side of the stu,
ation, however, there are these factors
TO be taken into consideration. Prices
of many good securities arc low and
are yielding generous returns to invest
ors at present prices. There has been
a heavy decline in values and any
further shrikage of importance will
he sure to bring out investment buy
ing. The bond market has improved
somewhat, and here, too, - investors
can find excellent security at attract
i've rates. Later on. as monetary con-
dit:ens improve. a further advance in
the bond market would not be surpris-
ing. While severe harm to the crops
was done in some localities, it is to
be remembered that as a whole the
crops were fair and some sections
= were favored with exceptionally boun-
z tiful yields.
'All things considered, we are likely
to see continued irregularity in the
market. The Mexican situation is a
serious element of disturbance, and
much depends upon the election
which comes off on the 26th inst.
There are two other approaching
events which should be watched with
interest The decision of the supreme
court in the anthracite case may come
soon; and the arbitration award in
the\wages dispute between the rail-
roads and the trainmen is now due.
Fortunately there is now brighter
prospect for a more satisfactory cur
rency bill. Many Objectionable feat
ures have been eliminated and the
general tendency of changes has been