The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-11-07

As rule the closing OF political
campaign has favorite influence up
on values, because uncertainty is re-
moved, and final results are otter
partially discounted In advance. This
probably explains the present strength
OF the market. The campaign has
been accompanied by god deal of
acrimony. much of which should dis
appear after election day. The coun-
try is tired OF agitation and Is entitled
to neriod of rest at least until the
assembling of Congress month hence.
Speculative opinion on the Stock En-
change has been somewhat divided.
Prices reacted from the sharp October
rise, which was due to very powerful
leadership; and now there Is a dispo~
sition to carefully weigh the influences
which are swaying prices In an upward
direction. Much Of the popular dislike
of corporations and railroads which
existed in the first half of 1910 is dis
appearing. and the conviction is grow
ing that attacks upon property rights
will not exceed and that indiscrimmi-
nate raids upon corporations are pro-
ductive of more harm than good. It
is observed also that corporation man
ayers are more conciliatory in their
regard for public welfare. as well as a
more general disposition to obey the
law Such policy as this II sustain
ed will do much towards disarming
public criticism. There is no longer
the feaN that once existed of radical
decision by the Supreme Court on the
Oil and Tobacco cases. 1t will be re-
membered that an adverse decision in
the famous Northern Securities case
did not have an injurious effect up
on the market; and there Is no reason
for anticipating and calamity as re-
suit Of the Supreme Court decisions
when they arrive.
The position of the railroads In re-
gard to transportation rates ID also
| more satisfactory. In the Arst place
many of the railroads are showing
large gains in gross earnings. notwith-
standing the talk OF business depres-
sion. and, could expenses only be
brought within reasonable limits,
there would be no fear as to net re-
suits. Even in the latter respect the
railroads are maintaining their posi-
ton better than anticipated, and there
lis no immediate prospect OF any re-
duction in dividends. The railroads.
however, are much in need of new
1 capital. and this they are unable to
| procure under present financial condi-
| lions. In view of necessary large ex-
penditures by the railroads 1t Is not
improbable that the interstate COM
merce commission may allow some
advances in rates, which would en-
able them to finance urgent require
ments and to maintain fair dividends.
/ The situation OF the railroads as re-
CARDS investment conditions 10 well
Illustrated by the fact that in Octo-
Der the total security issues reported
was only $4,000, 900. the smallest In
any month since September. 1906, and
$50, 900, 900 less than in the same
month a year ago. Since January l
the total security issues reported have
been 1929, OOO, 900. against $685..
100000 q year ago. OF this amount
railroads have issued $785, 900. 900. as
against $724, 100000 a year ago, an in
Grease of $61, 900, OOO 1t is worthy Of
notice however that this increase was
entirely due to larger issue OF notes
which for the nine months amounted
to nearly $195. 100000. as against $780,
600. 900 for the nine months Of 1909.
In bonds and stocks combined there
was decrease for the year OF $685.
900, 900, while the issue OF notes in
creased more than 100000. This
illustrates very clearly the difficulties
in the money and Investment market.
The monetary situation Is not yet
entirely clear. The crisis SO conf
IDENTIFY predicted in the early part OF
the year, especially by London. has
not materialized; nevertheless. the
immediate course is not without its
pitfalls. An unwelcome feature is the
continued excess OF loans over depos-
it's, indicating that the banks are lend
ing upon their capital and surplus.
This weakness may disappear in due
time. but it is condition which re.
lquires watching, being q symptom Of
lover expansion Of credit. Western
bankers are less confident Of escaping
q money squeeze than three or four
weeks ago, and 1t is quite possible
that they may be obliged to call upon
New York more freely for their bal.
ances. Stiff rates for money may be
expected for balance OF the year. The
Government has also been withdraw.
ing funds quite freely, the result being
that we may expect continuance oil
low bank reserves at least until funds
begin to return from the interior. The
only real cure is a further reduction In
loans: and the higher rates for money
recently prevailing suggest 4 tenden.
CIV in that direction. There is. however