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Show PLLNIY OF HONEY TO MOVE CROPS, AND INTEREST RATES NOT LIKELY TO HARDEN BY HSKBT CLEWS. (Bpertsl to The Telegram. MJW YORK. Aug. 1. Any com prehensile prehen-sile view of the outlook for the financial market this week merits careful consideration consid-eration of foreign affairs even mora than of developments at home. Growing out of tho Moroccan rivalries of Prance and Oermany, International relations of tha groat power of Europe have reached a state of such ken delicacy as to require moat skillful touches of diplomacy, of Jood and calm Judgment and honest n-eavor n-eavor to prevent what promisee to roach vary close to a serious culmination of what at first appeared a petty affair. I do not sugtreat that actual warfare will : bo tho result. Present day civilisation -would not pegmlt such an unneoeseary wast of human life and destruction of Rroperty. Nevertheless, those of ua who av closely followed European history for a half century or more cannot fall to recognise tn the Fran co -Orme n controversy con-troversy the spark of a fir that has long been smoldering, ready on the slightest encouagement to brak Into a conflagration conflagra-tion that might readily become unoon- gratn fields. In fact, th general harvest outlook has reached uch a stage that he must indeed be a pessimist who will fail to recognise that we have before u another season of great agricultural prosperity, pros-perity, and in turn the benefits of this prosperity, namely, the ability of our farming; sections to buy tho products of our factories and thus produce a revival in general business, tot port s of mr-chamtlse mr-chamtlse are continuing on a highly satisfactory sat-isfactory scale and are constantly adding to our already large International trade balance. Our hanks are beginning to experience their usual annual demands for funds to move the crops, but there Is no practical prac-tical hardening of Interest charges and prospects" certalnlv continue to favor the poel t ion that th harvests will bo financed this year without anv serious strain on monev rates and without th Important liquidation of securities that such a strain would entail. Crop money will undoubtedly be very extensively re-leaaed re-leaaed before tn demands of trad and Industry beoom Insistent and our ability abil-ity to prompt I v call in balances from ahmad fa a constant guarantee that the money sit nation ffr a considerable period ahead need not he considered an nd verse factor in th general stock ' market. level would create a much stronger posit po-sit Ion later on and would prove ben-final. ben-final. Meanwhile, it la not improbable that fluctuations In the more eperulatlv class of securities will ho sufficiently wide to make during the next few weeks a good trading market. W are not yot Out of the woods so far as the sprinc wheat and corn crops ar concerned, and these miv be expected to furnish Incentive In-centive for the fluctuations already referred re-ferred to. The fact mav again be emphasised, em-phasised, however, that both spring wheat and corn are this year particularly particular-ly earlv In point of maturity and that the annual threat of damage by early frosts J, therefore, much less than usual. Under mjrh Hrcumstances Fluropean financial centers havs before them a period pe-riod of nervous tension. Today there Is but on money market a world wide market of which London, New York. Paris. Re rim and othr centers are mere branches, and rise or fall In sympathy. Until the European political outlook dears, therefore, It Is not unlikely to exercise a retarding Influence on our own stock market' price level. At home conditions are more favorable. Unsettling; Influences against whlrh the financial markets have had to contend for a year or more are one bv one being be-ing eliminated, and In a fortnight or so the slats will have been cleared. An Important development of the week in thla connection has been the Interstate commerce commission's decisions confirming con-firming Its previous position In ordering reduced rates for freight transportation In Rocky mountain territory. These decisions de-cisions are In what are known as the Spokane and Reno rate caae. which have been keenlv watched In railroad and financial circle for a long time because of the accurate tst they were expected to provide In the matter of the long and short haul rases tn the Interstate commerce com-merce act. The decisions mean soma con-traction con-traction in the revenues of the large western trunk lfnea. but It Is most likely that the practical working out of the commission's rullnga will not prove ss drastic as railroad men were Inclined at first to believe. At any rats. If rates were excessive, as' haa been shown by tho Interstate commission, they should be moderated, and it may be taken for granted that proper rate for the transportation trans-portation of merchandise will In th long run redound to th benefit of th carriers by providing; s compensatory Increase In; the volume of merchandise demanding transportation. The second important tnfluencs of the week at home has been the enactment bv the New York state legislature of a law which extends for five years the period In which the large Insurance companies com-panies may dispose of the securities that they are not now permitted to carry their surplus in. Had this amendment to the Armstrong law not been enacted. It would have meant that securities amounting tn more than l8o.000.000 must have been sold before the 1st of January or the officers of the companies would personal) v be criminally (labia Aa It la th companies will now have ample time to dispose of these securities without the spur of s time limit. It should be understood that thee stocks that are held by the Insurance Insur-ance people are In most Instance highly conservative Investment stocks, and the liquidation Is merely In response to the requirements of the Armstrong law that Insurance company Investments shsll be in bonds. On our own side of the wster" ther now remain but two definite features that ar calculated to restrain business In the financial, mercantile and industrial activities of the country. These Influences Influ-ences are the waning session of congrees and the possibilities of tariff revision that : still remsln. Congress hss already enacted en-acted the specific legislation for which It was called In extraordinary session, namely, the reciprocal trade -agreement with Canada, and haa now before It for probable action the farmers' free list, the wool schedule snd possibly slso the cotton cot-ton and Iron and ateel schedules. Of the last two named, however, there Is considerable con-siderable doubt whether snv radical a. -tlon will be taken, and best Washington sd vices give no reason to change the ststements recently made In these ad -vires that congress will adjourn very close to August 10. When this adjournment has taken place the general financial situation will be In a position In which It will be Influenced by tbe dsv to dav news developments. All the old restraints will hsv- passed Into history, including the eehrsted trust cases, the t'nlon Psrlflc merger, the Spokane and Reno eases, the uncertain uncer-tain tv regarding the holdings securities securi-ties bv Insurance companies and a number num-ber of other influencee that have been talked of so freouontlv during the last year thai; they have almost become tiresome. tire-some. The control Hag factors from now on will be the developments of the crops and 'tb prospect of the monev situs tlon. Rains have this week been so general and beneficial that very II t tie Is now heard of crop failure. een In- Vocal sections. sec-tions. The cotton outlook etlil favors a new record In volume of "production, a factor that has exereteed recently a distinct dis-tinct degree of depression of prices for the staple. Wheat and com nrlcee have also declined and have tn this wsy reflected re-flected th Improved conditions In the |
