Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-08-18


not wanted for purposes of legitimate
business 1t will surely be used for
speculation. Such a state Of affairs
may be undesirable, because reaction
will surely follow, delaying rather
than accelerating genuine recovery.
But these are the facts, and no re-
straints upon excesses are likely to
be found except those exercised BY
prudent bankers and the common
sense ofthe business community.
Those who accept the theory Of gold
imitation will undoubtedly attribute
the present era of high prices to the
large production Of gold. The latter
undoubtedly has an important effect
upon values, but less than is often
supposed. A large gold surplus is an
undoubted stimulus to values, be-
cause when used as basis Of credit
1T imparts fresh vigor to all sorts of
enterprises; but there also are other
| factors of more weight in the estab-
! lishment of values, notably that Of
| supply and demand. Only let us have
larger supplies Of wheat, corn or cot
ton or any other products than requi-
| red, and prices would quickly drop,
! regardless Of any increase in the gold
supply, which can be considered as
an Indirect stimulant but not close
! regulator of values. An additional
element Of imitation is the increase
in national bank note circulation of
4 S41;000,000 voer year ago. Under a
we'll devised elastic currency system
these notes would be gradually with
drawn; but, as they are based upon
Government bonds, which have lately
declined, bankers are indisposed to
retire them, thus aggravating the
general redundancy. "a " .
"A good deal of realizing has taken
place during the past week, and
prices often reacted sharply. AS
stocks are steadily passing from
strong into weaker hands, the techni-
cal situation of the market is less
strong than one or two weeks ago;
and thus far the decline has not been
sufficient to induce the big operators
to take back the stocks recently part
ed with. The future of the market is
unusually difficult to forecast. The
leaders still have stocks to sell, and
may be obliged to push the rise still
higher if able. In this they have on
their side the immense accumulation
I of idle funds, and steadily improv.
ing business situation. While the lat.
, ter has been fully discounted by the
, recent rise, it is difficult to persuade
, the average investor or Spectator tc
: lessen his holdings when good crops
: and increasing activity afford basis
, for growing optimism. Business i.
, still much depressed as demonstrated
5 by poor railroad earnings and SLOW
= recovery in the iron trade. But sucl
: clouds are gradually, disappearing
I'll and the benefcent effects of goot
s harvest are already making them
: selves felt; especially in the interio
: where shelves are empty and buyers
: plenty after a period Of economy ant
t liquidation. The unexpected success
; of the big auction sale of cottol
: goods this week was a gratifying fea
/ ture, and showed good buying powe
: in the various markets. We :contin
s ue to advise caution in stock marke
S operations, especially avoiding tn
j temptation of pyramiding. A reaction
J, is due, and would prevent the marke
$ from becoming dangerously one
= sided. Indications point to continue,
t activity, with better opportunities TO
r trading than have been experiences
= for some time.