The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-04-25
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

~ ~ ILA IL
Resumption OF activity on the stock
exchange has been somewhat slower
than anticipated owing to temporary
combination Of unfavorble conditions.
It is quite important to recognize these
impediments and to reach . fair estf-
mate OF their duration. The business
situation is spotty. and there il q les
sened activity in trade, rs well Is mo-
table decline In the overconfidence
which existed at the opening OF the
year. The causes of this change in
commercial sentiment are not very
difficult to discover. Continued aRi-
tation against high prices Is having an
unmistakable effect, and has awaken
ed the public mind to the absolute me-
cessity for economy. In some instanc-
es the exhaustion of buying is forcing
economy; In others 4 recognition OF
the too-rapid pace at which the coun-
try was going has produced greater
conservatism. There has unquestion-
ably been lessened consumption of
many articles Of food and other neces-
stiles, as swell as Injuries. Retailers
are in consequence buying in small
quantities, and the reaction thus start
ed is passing on to the jobber, the
wholesaler and the producer In con-
sequence we are witnessing declining
prices in nearly all OF the commodity
markets: a natural. wholesome and
highly desirable reaction from the pro-
hibitive level to which values had fire.
quently risen.
Some further hesitation in financial
affairs has been caused by develop
ments in the political situation. Much
significance is very properly attached
to recent elections in New York State
and Massachusetts,. They have made
two things very plain: First, that the
tariff must again be revised and this
time downwards, also that the people
are weary of political corruption and
are selecting higher type of men as
their representatives, to the utter dis
comfiture of those who have profited
through bossism and corruption.
Rightly viewed such readjustments in
business and politics are healthful
symptoms. They mean that both bus
mess and politics will be on sounder
and more hopeful basis as soon as this
corrective process becomes more COM
plete. Temporarily there may be
more or less uncertainty and hesitancy:
but this should gradually disappear,
and later or trade should resume nor
NAL activity, especially when it is
found that prices have touched bed
rock. There is really nothing In the
business situation to warrant any un-
easiness. In the West conditions are
generally sound and hopeful. While
there have been some excuses in land
speculation, the latter are not in any
sense of an alarming nature. Much
of the advance In land has been based
upon increased earning power, and as
long as this is preserved there Is no
danger Of any serious collapse. West
ern bankers are fully alive to existing
difficulties, and are pursuing q much
more conservative course. It must
also be recognized that the West Is
much stronger financially than at any
previous time in its history, and will
be able to carry its own enterprises
with relatively less assistance from
the East than in previous instances
where aid was necessary. The West
views the outlook from that stand
point.
Crop reports SO far are very encour-
aging, Notwithstanding exaggerated
reports of damage. The winter wheat
crop is in good condition, and prom
ises to be large one. There is also
every prospect of a considerable in
crease in, tie acreage of corn and cot
ton, while farmers are already at work
using the very best methods with
which they are familiar in order to Sc
cure the largest possible yield per acre.
It is quite certain that efforts In this
direction have never been equalled in
previous years thanks to the persistent
endeavors to stimulate more scientific
cultivation which have been made in
the last few years. II further evil
dences Of the activity in the West were
wanted they could be found in the reg
ular reports OF railroad earnings which
are exceedingly favorable. In March
So railroads reported gross earnings of
$65OOO,OOO, an increase OF $780, 600.
or nearly Is per cent more than a year
ago. For the first three months of the
current year IS railroads reported
earnings OF $179,OOO,OO an increase
Of $24 200, 600, or over Is per cent.
Such heavy percentage of gain as the
latter has not been seen since the year
1900, which was one Of unusual pros
perity for the railroads. These re-
turns chiefly include roads serving the
agricultural districts, and do not cove.