The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-20

cash, but have TO make 1t up in part or
entirely at the latter end of the game.
They cannot even get their property back
without submitting TO heavy penalties.
XXX
The prompt measures taken by Secre-
tary Shaw to discourage the retirement OF
circulation have taken by surprise many
crafty bankers who were planning profita-
bic deals by selling the bonds on deposit
for circulation and then using them as
collateral for government deposits. AS has
been explained, this process nullifed the
EFFORTS of the secretary TO supply an IN
creased volume of money during the crop
moving period. II is not known X he took
official cognizance OF the play or not, but
word passed along the line that II 1t were
not stopped bankers who were trying 10
make money that way would receive no
deposits of government funds. Loud COM
plants are going up from those whose
plans have been disarranged. but the finan-
oial community as a whole is laughing and
turning u smile of appreciation upon the
secretary Mr.. Shaw has shown several
times that he is not only courageous. but is
full of resources and equal TO nearly any
emergency which might confront him. lie
has made mistakes, il is claimed, but he is
redeeming himself and stands better with
hnanciers now than at any time since he
assumed the treasury portfolio.
The industries have suffered more of late
against industrial stocks and bonds in their
eollaterals, and consequently commission
houses and brokers discourage speculation
in this class of securities. This is having
more injurious effect on the standing of
manufacturing enterprises than the facts
justly warrant Wherever owners of the
properties have started clear of the mis-
take of overcapitalization no troubles
have been experienced. The columns OF
newspapers are full these days of reports
of disappointments in the matter of earn
ings and all that sort of thing, but it must
not be forgotten that there are many great
enterprises which have been subjected to
the severest tests and whose standing is
established. Standard Oil leads in these,
OF course. Then comes Sugar and next
Tobacco. There are two or three great
electric corporations, the Singer Sewing
Machine Company and corporations OF
lesser size, although running into millions,
that are doing continued profitable business
and are conducted along sensible lines with
the main view of the manufacture and sale
of goods RELOCATING Wall street to secon-
dairy consideration. 1t is only where ambi-
tious promoters have undertaken to dis
and realize at one swoop the legitimate
profits of that period that disaster is to be
chronicled.
For six long years the railroads have
strained every nerve to supply facilities for
handling the business that pressed upon
them. They had to have the rolling stock
and they were forced to increase their
terminal facilities and trackage conven-
fences, improve their roadbeds, replace old
rails with heavier ones, build stronger
bridges, and in every way put their prop
critics in an improved condition. This was
something which could not be delayed.
Consequently the railroads had to pay
very high prices for the work. but now
hat
upon them and are giving themselves a
rest, calamity howerS insist that the coun-
try is on the back-track. Proof in support
of this claim is lacking. Representatives
of every line of activity agree that BUSH
ness conditions in the main are satisfac-
tory. The buying force of S0,000O00 people
Is apparently in no danger of exhaustion,
and so far as can be learned the business
situation can be properly described as in
dicatiug general healthfulness. The fever
is somewhat out of the blood, perhaps, but
disposition to await the full results of the
crop year, but all the important crops are
now out of danger except corn. AT worst
there is fair assurance of a good crop of
that cereal, and the whole crop year has
been a profitable one. The old world de-
mand for our surplus is sure to be urgent,
which is a guarantee of remunerative
prices for the entire output OF the soil. The
farmers of the United States are reasona-
bly, certain of crops worth at least $780,
100000, which Is fully up to the average,
and which of itself is assurance Of at least
another year of national prosperity.
Reverting again to investments By rail-
roads in the matter of rolling STOCK
bridges, rails, ETC., there is authority for
the statement that in the mere matter of
maintenance the demands of the transpor-
tation companies will be at least 20 per
cent. of the manufacturing capacity of the
steel plants, locomotive and car works for
an indefinite period ahead This leaves
small enough margin for new business and
for miscellaneous requirements.
w. G.. NICHOLAS.