Richmond daily palladium. [volume] (Richmond, Ind.) 1905-1906, 1906-02-26
CROP OUTLOOK NOT The BEST
Winter Has Been Such as to Injure
Crops in Northwest - Foreign
Trade Is Tremendous.


ON the Stock Exchange continues to
show signs of fatigue. Values
strengthened temporarily at times,
owing to the covering operations Of
an increasing short interest, blu the
general drift of the market remains
downwards. The reasons ar ethe
same as already advanced, namely,
the overdiscounting of all bullish in
fuences, the great increase in new
securities and the scarcity or adj
vancing tendency of money. The
multiplication of new securities is
going on at a rapid pace and further
large amounts are probably forthcom-
ing. This process, if long continued
will produce more or less congestion
in the financial markets. Then our
lcal monetary outlook is still unsat-
isfactory. Bank reserves are low,
and not being strengthened by the
usual influx of funds from the interi-
or, because business activity in that
region interferes. Large sums are
still locked up in speculative ven
lures, and stringency here has forced
the making of large loans abroad.
There is no cure for the present sit
uation except further liquidation,
and any attempt to carry on the up
ward movement under existing con-
ditions will inevitably lead to diff
Guilty.
Another influence upon the stock
market, which has not yet received
the consideration to which it is en-
titled, is the spread of the fever for
investigation. Both State and Ma
tional legislatures are becoming ac-
lively interested in this movement;
instigated, of course, by corporate
abuses which have incensed public
opinion and resulted in the present
fever for investigation committees.
Quite a number of captains Of indus
try and finance are in. consequence,
placing themselves beyond reach Of
the process server, the result being to
check speculative operations and Gre
ate feeling of timidity among inside
. operators. 1t is unnecessary to say
that the political effect of these in
vestigations will be more or less dis
turbing; since they provide material
for more or less sensational disclos-
ures, stimulate the anti-monopoly
ointment and materially strengthen
the tendency toward Socialistic theo-
ries. These symptoms have not yet
exerted their effect on Wall Street,
being for the present entirely over
balanced by the continuance of bust
ness activity. Later on they may
receive more serious consideration.
The Armstrong insurance report is
certainly not a bull argument on
stocks. 1t means that hereafter
these powerful institutions cannot be
depended upon in support Of stock or
bond syndicates; and the limitations
which are likely to be placed upon
their investments will also have some
effect upon values, strengthening is
sues which are favored and weaken
ing those Disseminated against. Of
the latter class several hundred mil
lions will have to be sold during the
next five years so that these recon-
mendations if carried out will cause
very considerable shifting of in
vestments.
Attention is now being given to the
crop outlook, and advices from the
Northwest are not entirely satisfac-
tory. The winter has been mild
one throughout the wheat belt, but
the light snow fall and the absence
of the usual quantity of moisture
have had a more or less injurious eff.
feet upon the crop. This year the
harvest will be watched with unusual
interest, since it may become turn
ing point in business progress. There
arr many sims of approaching reac.
tion and only so'no prone need
drawback such as csop fail 70 is
needed 10 change the current 1t is
too curly, however, to feel any uneas-
mess in this respect; and later on he
heavy expenditures for new rail
roads and other constructive rnpos
es suggested by recent large bond is
sues will prove a supporting influence
In business.
Our foreign trade is running into
tremendous proportions and in Jan