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Show THE BUSINESS OUTLOOK. "A formidable array of unpleasant facts," is the summary in the weekly market letter by Jlenry Clews. The New York banker plaoes much stress on the condition of the corn crop, saying that, if ccrn improves so that at harvest time there is a good yield, the country coun-try may b saved from a depression. "Should we raise a 3,000,000,000-bushcl crop, worth about $2,-000,000,000 $2,-000,000,000 to tho farmers, ' is Mr. Clews' statement, "this will do much toward checking any serious business reaction. On the other hind, evsn partial failure of the corn crop might invite serious consequences. con-sequences. Another four to six weeks must elapse before corn is fully made. Fortunately, the latest reports are very favorable for a big yield. Wheat, too, lias been showing marked recuperative pow-crs pow-crs from previous damage. All things considered, the crop outlook is mixed and might be better; but still contains some features of positive pos-itive encouragement. "Another element of uncertainty is the political situation. Ro-cent Ro-cent events at the West emphasize political discontent and indicate Democratic gains in the election next November. Advices from Washington also suggest the probability of considerable agitation in , the early future. The business outlook is not altogether satisfactory. It is now generally recognized that the country has already entered a period of reaction, retrenchment and readjustment. Nothing se- . vere in this direction is expected, but it is generally recognized that the pace has been too fast and that a period of slowing-down is imperative. im-perative. Conditions in the iron trade, which is usually considered our best trade barometer, confirm these views. Production of pig iron is running at the rate of about 20,000.000 annually, which is 20 per cent below maximum of the year. Prices of iron products j show a declining tendency. The copper situation continues perplex- I ing; supplies are increasing to an embarrassing extent, and there ! seems to be no way of restraining the output except by reducing prices to a level that will force shut-down of the weaker concerns. The textile trades are experiencing a slight improvement, but are still embarrassed by the high cost of raw material, and many mills nrc idle. Business failures arc increasing; the total number reported re-ported in July being 1,147, against 1,105 a year ago. More than $1,-000,000,000 $1,-000,000,000 in new securities were issued in the last six months. In July the issues were only about $62,000,000, compared with $121,-000,000 $121,-000,000 a year ago. Railroad earnings continue to show a liberal Increase in gross ; but a number of the roads are showing startling losses in net since the increase in wages which went into effect on June 1. Plainly railroads must secure better rates of freight, unless Ihey are to cut wages and expenses to a point that would be hazardous. hazard-ous. Doubtless many of the roads will inaugurate a policy of rigid economy before very long; something that v.ill neither be relished by labor nor by concerns supplying the railroads with materials and equipment." According to Clews, the greatest apprehension is not as to crops but as to what the railroads will do. The most important factor in our business affairs is the policy of the railroads. If the big roads concertedly aim at retrenchment in order to punish the American people for adverse legislation or restrain the Interstate Commerce commission from reducing rates, they can make this country a dreary place. The railroads are so powerful that they must be held in restraint re-straint by the government and, if that is impossible, they must be--no government property. |