The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-29
Great Cotton Crops and Good Prices
This Year Make the Planters Pros
porous at Single Bound.
EXPECT MORE MONEY FLURRIES
OPERATIVE CONTROL OF INDUS.
TRIALS LEAVING WALL STREET.
Passing Out OF Hands of Amateurs and
Falling to Management of Prac-
teal Men-Outlook Brighter.
Special to the INDIANAPOLIS Journal


NEW YORK, Nov. 2s.-The South and South
is leo per cent. profit to planters in Decent cot
ton. That this years crop alone a
clean and clear addition OF $50, O0O, 900 more
to the wealth Of the cotton States of the South.
Besides cotton. crops OF every description
throughout the South and Southwest are large
this year and good prices obtainable for the
surplus The South and Southwest feel less
than any other part of the country the in
dustrial depression which is just now. being COM
planned OF. The people of that part of the
world consequently in buoyant spirits. and
reports which come from every State south of
the Ohio and southwest of st. Louis are of
the most encouraging character.
Wall street has not been in the habit of look
ing to the South for stimulation and consequent
~ the good times which prevail there are not
given their full measure Of Importance as
great factor in the making OF broad conditions.
This will come later and it will b. proud day
for the South when it meet even terms
the doliar-proud sections OF the North. The in
dustrial development OF the South is but dimly
realized in the North. and especially Is this
true OF the Northeast. the awakening to the
facts will be slow process. but it is going
The South has already drawn heavily the
manufacturing strength of New England and the
| middle Eastern States, and the end is not yet.
water power and other natural advantages for
manufacturing are almost without limit and
there has hardly been a commencement in their
utilization. The difficulty in obtaining skilled
| labor Is one which time will obviate. The popu-
ation OF the Northeast is in sad need of a course
OF education to what has been going on in the
| South during the last five years. The develop
ments of the next five years will unquestionably
| Lring about the needed enlightenment and place
fha So-xfh xha hello
dustrial. commercial and financial equation
That Wall street should be turning its face in
sign and shows that that long Handicapped sec,
| ton Is beginning to command respect and atten-
/ days
| II the month Of December escapes without one
| or two durries in the money market Wall street
will be surprised. The bankers and money lend
| ers take advantage Of the movements made by
| corporations during the four five weeks pre-
ceding the January disbursements to mark up
| the rates borrowers. There is invariably,
during this period, general shifting about of
loans and credits and concentration of cash.
vious three and six months are collected for dis
to bs and in the a
money remains in the banks OF New York either
OF outside banks The distribution this coming
January will exceed $780, 900 000 TO the unin-
| this immense sum could be paid out without
| disturbance to the money market, but, as a mat
| in the financial world. The occasion is seized
| upon. however. by money lenders to give bor-
rowers a little scare and to go through the peri
odical process of housekeeping. Weak accounts
fertilization of margins and Strengthening of col
iaterals II so happens therefore, that there
| seasons and professional traders on the stock
| exchanges look for sharp breaks in specialties
ana Tor declining quotations in the general list.
The latest phase in the evolution Of the great
Industrial combinations is the passing of opera
tive control from Wall-street bankers, insurance
agents and other amateurs back into the hands
Of practical men who have grown up in the
manufacturing business. This is conspicuously
the case with United States Steel and 1t is a
good thing for stockholders that the change is
| taking place 1t long ago realized that
one of the fundamentally weak points in the big
steel trust the dictatorship of banking and
insurance interests in the actual management
OF the property vast business with which the
| men in control had experience and no prac-
ticai knowledge whatever. The result has been
proved to be most unfortunate to investors in
| these properties This basic weakness was
pointed out to Mr.. Morgan and his Immediate
banking and Insurance associates more than a
have been identified in the development Of in
| dustrial enterprises for more than quarter OF
received in iIl-part by Mr.. Morgan But the
fact existing. nevertheless, was mainly response
factories They did not have full faith in d the
81 to it's Set Il 70 %o uIh
pear that tirne has in a measure justified the
skepticism and lack OF faith.
There is felt to be encouragement, however. In
the prospect of a partial reorganization of not
only the big steel trust, but of the minor in
dustrias. and the restoration OF control III actual
np to and the w sS sSe been ss m
manufacturing all their lives. A sharp pruning
ct expenses n Is In Rr9gress @ figure
salaries are being cut off and favorites. who
were given sinecures because they happened K
be reiatives Of influential people in the corpora
tons. are finding themselves out OF jobs The
is being recognized. For this reason the in
| creasing power OF the Standard oil in steel and
II ee IS anything these ee msD fn snnf
is how to conduct industrial projects to the bes
tests 81 their sbity in I ass deeten
The Roekefeliers may not be lovable PROPOSE
least understand their business when it comes t.
anbeH Of pra es past ro few and days hay
and almost without exception they look forward
people in the steel trust as an encouraging in in
dication.
These not Joyous times for commission
houses and rich brokerage firms who lent them
selves to the promotion of industrials. Almos
without exception they committed themselve
beyond the limits OF prudence and in the ent
found themselves loaded up with unstable secur
tiles. Latterly. banks have been sharply dis
| eliminating against all industrials except thos
that have gone through the fire and beef
thoroughly tried out at every point. The com
mon issues are dead weight on the market
, | They have no longer any place in the list o
colIaterals accepted by banks for loans. The
are thrown out and are that much handicap Of
the credit OF the holders who in the Dor
| rowing line. OF the $4,000. 600 in common stool
of the United States Steel Corporation, IL
estimated that fully 90 per cent. is the street
Originally. the entire amount OF common stoc
, represented market value OF about $3.50 CO., coo
AT present quotations its value Is less than $50.
ec0. 90. The collateral value Is nil. The stree
!, holdings represent shrinkage of so a share. o
about S100. coo Oco There has been at least pro
portinnate loss in nearly every othe- new in
dustral a still larger percentage OF this los
l | the minors falls upon Wall-stree
, houses There has been a very narrow marke