The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-10-11

are multiplying daily. At
in the money market are being heed
ed, and it is recognized that Stock Ex
change prices have been forced TO
level beyond reason. Every known ar
sument in favor of higher prices has
been worked to the limit: every known
element OF prosperity has been more
than fully discounted. Even better
dividend returns have been more than
anticipated. as is proven by the fact
that when these occur they are usual
ly utilized as a basis for fresh realiE-
ing.
For months past the Street has been
stimulated by optimistic views and
activities of all kinds: some OF them
genuine, some of them far from trust
worthy. Much of this so-ca!led pros
perity talk has been exaggerated and
unfounded- Only in the steel trade is
there extraordinary activity and pros
perity combined This industry is
certainly enjoying phenomenal sue
cess; all records Of production being
far surpassed, and the best authorities
agreeing that the country will witness
a tremendous demand for steel at good
prices for some months to come. This
is due to the fact that the nations in
crease in population. activity and pur-
chasing power compels large extern
sions in railroad and industrial plants.
Our railroads. it will be remembered.
deferred many improvements during
the period of economy which followed
the panic. and many new enterprises
of an industrial character were also
postponed. Just now there is an al
most too violent rebound: constructive
United States, and the result is a call
for large quantities OF iron and steel
in various forms. The widening use
of steel as a constructive material is
also a factor OF much importance in
this respect
Outside Of the steel industry. how
ever. it is difficult to find any cause
for immoderate enthusiasm. business
as whole not yet having reached the
volume OF 1906. Our farmers. as a
class, are enjoying great prosperity
because Of the very profitable prices
realized upon all agricultural products.
Yet their prosperity is Of the kind
that is not universally desired, be-
cause it is unevenly distributed and is
mainly at the expense Of other class
es of society. Present agricultural
prosperity is based to a considerable
extent upon scarcity: which can never
be considered entirely beneficial be-
cause of the certainty that somewhere
hardship is imposed in consequence
Cotton. for instance. is selling at 13c.
not so much on account OF great de-
mand as for an important shortage in
this years crop. As a result some
planters are making large profits while
not a few have incurred heavy losses.
Spinners, except those who bought
cotton early. are embarrassed by the
high cost of raw material. and cur
tailed production is necessary. This
in turn means loss of wages to en-
ployes and diminishing purchasing
power, while the consumer must
either spend more money on cotton
goods or consume less, either alterna-
tive acting detrimentally to some in
terest. No doubt cotton has been un.
duly advanced by dangerous specula-
ton. The rise in prices is out Of all
proportion to the diminution of sup
plies; and. in view of the large sup
plies carried over from last crop, the
better yield in other countries and the
curtailed consumption both at home
and abroad. it must be conceded that
the chances OF a cotton famine are
very remote.
Next let US take the corn crop; a
highly important source of wealth to
this country. The yield this year will
be large and promises to command
good prices. yet the crop has fallen
considerably below earlier calcula-
tons and is therefore somewhat CT a
disappointment. Necessarily this must
cause a modification OF the ultroop-
timistic views which were held in
midsummer. The farmer. 1t is true,
will secure good profits for his corn !:
but how about the consumer who,
obliged to pay for pork, beef, eggs.
CQlCkSUS, etc, lflIO WHICH corn enters.
will have that much less to spend in
other directions? The same may be
said OF wheat, the worlds surplus Of
which is at a very low ebb: hence the
present high prices. A larger crop
would have proved highly beneficial,
inasmuch as the money result to the
farmer would probably have been
quite as large as under present search
ty. and the country would then have
possessed surplus for export with
which to pay for heavy current mer-
chandise imports.
This brings us to a new condition
which has not been sufficiently appre-
ciated. The impediments to exports
Of cotton and wheat are likely to be a
serious factor in our international
trade Business revival is causing un.
usually large imports. while our ex-
ports are abnormally low for the reas-
ons of scarcity just specified This
means the piling up of a heavy debit
abroad Our borrowings in foreign
markets are already reputed to be in
the neighborhood Of $400. 900 00o; and
if 20 this be added our unfavors5ie
trade balance ii is plain that We are
rapidly becoming very heavily indebc.
ii % 49,