The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-10-25
Business Review of The
Past Week BY Henry CPwS

New York, Oct. 25.-The stock mar
ket has been entirely overshadowed
by the activity of steel issues. The
steel industry is still phenomenally
active. far exceeding in this respect
any previous period in its history. Our
railroads are heavy buyers of mater
ialS because improvements postponed
during the panic are now being caFri-
ed to completion. Traffic is steadily
growing. and railroads are fully occu-
pied in meeting both present and fu-
ture demands. Such conditions are
especially favorable to distribution of
big blocks of steel shares held by the
big svndicates and pools which have
been behind recent manipulations.
The fact cannot be concealed that
these pools are distributing their steel
as fast as the market will assimilata
il. 1t is the habit of those who are
conducting this campaign to let the
public buy their surplus stocks when
prices and prosperity are at the high
level: and when this campaign is fin
is.ed its history. if ever written. will
prove it to have been n Of the most
remarkable and most skillfully con-
Quoted on record. Activity in steel
shares is not confined to New York.
but is evident in all parts of the world,
indicating a Wilderness in, distribution
among investors which has be-
fore been accomplished. 1t is useless
to attempt to forecast the course of
fhnSn cnnrrifi0c in riau- ~ thu n0Sr.
erful manipulation behind them: new
ertheless it is quite apparent that the
rise has been carried as far as reason
and safety should permit. The adj
vance has been predicted upon a be-
lief that the dividend will be increas-
ed. opinion varying between 4 and 5
percent. since it is claimed the COM
n is earning owe 6 percent. II
prudential reasons are to govern as
they nav in the past. the dividend
will not be advanced beyond 4 per-
cent. Any further increase would SIM
ply excite distrust. and induce the
public to believe that the manage
We're more concerned with the
speculative value of its stock than
their responsibilities as managers of
the largest industrial machine in the
world.
Outside of the steel issues the mar
ket has been featureless. Spectators
for the rise find few inducements in
view Of the high prices of securities
and dearer rates for money. Traders
must content themselves with small
profits and quick turns. Investors
are eve more indifferent to the mar
ket at this level, their attitude being
emphasized by the dull and declining
of the bond market. A good
bonds are being sold by insti-
tutions and others who made temper
airy investments when money COM
manded only 2 and 3 percent. These
parties now find better employment
for their funds and are letting go their
bonds accordingly. The firmness Of
money has had a distinctly restraining
upon the stock market. The ad-
vance in the Bank Of England rate to
) percent emphasizes the worldwide
of money rates. and was in
tended As a serious warning againgt
excessive speculation: a warming that
suouih III hi'St bc hccuCu "uctue.
We like it or not. For some time past
has been applying the brakes
in this respect. and III result has
to materially restrain reckless
While firm money is prob
able for some time to come there is no
reason for anticipating special strin-
gency. Home demands for crop and
business purposes are now at about
maximum; in a few weeks they
will begin to diminish. and with ac-
tuai marketing of the crops funds will
on the return to New York.
Under ordinary circumstances We
be approaching a season Of
gold imports; but an outflow of gold
is more probable al the moment han
inflow, owing to foreign opposition
to speculative movements here. The
OF an inward movement
has been materially diminished by our
short cotton crop and the high prices
grain and meat products: although
as far as making exchange is
ed II increase in values may some
compensate for the loss in guam
titles. Our imports continue heavy.
amounting to $121, 000. 600.
the largest of any September on rec
ord- 1t is encouraging to note that