The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-12-06
STOCK MARKET CONDITIONS
PRODUCE HESITANCY.
Steel Trade Reflects Natural In
dustrial development
OF Nation.
WEEKLY LETTER OF CLEws'

buCn as 10 lnuucc neSltah's. W""Ns
Is growing firmer. Congress opens
next week Serious strikes have
been inaugurated on western rail-
roads. The Nicaraguan troubles dis
turb confidence. Sugar and tele-
phone Investigations stimulate hos
tllity to large corporations. Indus
trial magnatts dislike recent inter-
ference with mergers and segrega-
ton plans. New security issues
have depressed many high class
stocks: whsle the coming British
election deranges trade and finance
in England. All these conditions
combined are adverse to bullish
operations. on the other hand, the
satisfactory conditions in general
business have thus far been suni-
cient to prevent any sharp or radical
decline.
General trade continues large In
volume, especially in the interior.
Bank clearings demonstrate this.
Railroad earnings are very satisfae-
tory, and the extraordinary activity
IN steel as yet shows no signs oil
abating. Textiles are also in good
demand. Secretary Wilson's annual
report emphasizes anew the pheno-
menal prosperity OF the agricultural
CLASSES. showing that the crops OF
the current year are valued on the
farm at approximately $S,750,00o,-
coo. or sS69. goo goo more than a
year ago. This is an increase OF
more than 10 per cent in value In
twelve months, which "a consider
ably greater than the increase OF
quantity in farm products and goes
far towards explaining the present
high cost OF living, abont which
complaint is 80 universal. This
prosperity of the farmer. the. largest
factor In our Industrial life. is the.
bedrock OF the present general ae-
tiyity In business. lie is probably
making larger profits than are his
due. and at the expense OF the tenn
pOrarily helpless consumer. Butpo
one begrudges him his good fortune.
for he must use II either IN getting
out of debt. building up his bank
deposit or spending more or less In
luxurles. the production OF which
keeps others well employed.
In the steel trade present activity
reflects the natural Industrial de-
veiopment of the nation. This latter
involves great constructive activity
and a large use OF building materi-
ais. Railroad construction and Inn
proyements are going on at rapid
pace. and the rebuilding of our cities
consumes immense quantities OF
iron and steele Other metals partly
enjoy the activity allotted to steel.
The demand for copper has improy-
ed considerably, but production still
keeps ahead OF consumption. and
the worlds supplies are exceedingly
heavy. The true remedy for the
present copper situation rests In a
lowering of price such as would
close many OF the more expensive
producing mines. and thus check
overproduction by natural means.
Artificial methods of restraining
Production through combinations do
not exceed. and as long as they vio-
late both economic, and statutory
law should not be encouraged. Yet
they are most perslstently promoted,
by the managers of high cost pro-
duclng companies which are in an
unenviable position, and would be
seriously hurt by substantial drop
in the price of the raw metal.
Bank clearings are very heavy
and testify as to the activity in busl-
ness The strikers in the west are
such as accompany prosperity, but
there is a possibility OF their spread
ing and injuring business, besides
more or less impairing the net earn
ings Of roads affected. General trade
is in sound condition, and the COM
mercial outlooks. as well as the In
dustrlal. is generally promising. The
chief complaint heard is the grow
ing cost of conducting business; and
the outlook is for diminished pro-
hts in the coming year unless prices
can be forced to still higher level;
contingency which in many cases
Will be impossible, for consumers
are already rebelling and economic
ing.
on Monday next congress VIII
open. The outlook is confusing.
, The tariff is out of the way, for the
present at least, but the question of
regulating monopolies and presery-
ing competition threatens TO be one
of the active discussion during the
coming sessions. A return of con-
ndence in this respect can hardly be
expected until the sentiment of con-
gress is more clearly defined. Presi-
dent Taft's message will be looked
forward to with special interest; and
while he must be expected to KEEP
his promises and maintain the
Roosevelt policies, 1t is probable
that he will do so with as kindly a