Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-01-03
COMMENT AND SUGGESTIONS I
IN THE WORLD OF FINANCE
BY HENRY cLEws.

telegraph and telephone lines which.
Is already beginning to unsettie con-
1dence in those securities. It is time
for security holders to make an eff
fective protest against this trifiing
with business and credit, and their
protest should embrace the millions
OF indirect holders or securities who
are frequently unconscious that their
interests are being attacked. There
are millions of savings bank deposit
tors and holders of life insurance POI
licies whose interests are being vital
ly injured by the present disturbing
political activities.
The great steel industry continues
much depressed and production has:
been cut down to almost half eapa-.
city, while prices have dropped to,
nearly the costs of production. Such,
extreme contraction is, of course, i'm
possible to last, for it means starva-
ton among steel consumers. An In
crease in orders must soon follow, but
the steel situation is nevertheless
very unsatisfactory. General business,
however, dull as it may be, is not I'M
sound and the country at large is rel
atiFely bare of merchandise. If conf
6ence could only be restored the com.
ing year would witness wide revival
lof activity; and there is nothing to
prevent this except, as just said, ,po-
slitieaf- agitatfon s : : e
The home money market IS In a
fairly comfortable condition, although
there are problems to be faced which
VIII require shilful plotting during the
forthcoming year. In all probability
the new currency bill will become a
law within few days. Most of the
objectionable features have been
eliminated and the bill promises to be
fairly satisfactory, although not all
that could be desired. Much will de-
pend upon the character and ability
of the men appointed to represent the
government on the regional reserve
boards, for it will be of paramount i'm
pcrtance to keep these y institutions
entirely free of political Influences.
The tariff question is now practically
out of the way, although occasionally
some doubt is in evidence pending re-
adjustment to new conditions. AT
present there is little or no chance for
any serious foreign competition for
either our steel or woelen mills,
which were more vitality affected by
the new rates than any other import
ant industries. ..~s5...1
The year is closing with a feeling
Of more encouragement on the stock
exchange. 1t is now a time for calm
seif-restraint and more hopefulness.
Recovery may develop when least ex-
pected. 1t should be remembered
that many adverse conditions have
been amply discounted by present low
| prices. With the tariff and currency
problems taken out of politics there
is - much gained. There is also in
| creased hope that the railroads viii
eventually secure partial concessions
Government ownership of railroads
and telegraphs may be coming issues,
| but they are far from accomplish
ment. A considerable short interest
| exists, and a buying power of cnnsi
, cradle Importance has grown through
the withholding of investment pur.
| chases fer months back: these are
| clements of strength. January diyi
dend payments VIII approach $3.50, 900,
| 900 and any favorable news under
snch conditions would be apt to pre-
cTpftate a sharp rise. The immediate
| future will be a good deal influenced
| by financial conditions abroad. which
ray soon begin to right themselves
/ Towards the close the market was
strong upon the favorable prospects oil
the currency bill.