The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-02-28

! This is period OF the year when the
market frequently shows quiet tend
ency. Many operators are absent on
! nld-wlnter vacations: general business
Is quiet. and there is a disposition to
postpone new commitments until the
| approach Of spring, which is usually a
sign for resuming activity. Never
! theless good undertone prevails, and
confidence tends to increase rather
! than diminish. In higher financial
circles there is still more or less doubt
! concerning the presidential policy at
Washington and the outcome of i'm
pOrtant impending Supreme Court de-
cisions affecting the American Tobac-
co-Standard Oil and Union Pacific: but
when these uncertainties are out of
| the way there will inevitably be less
| hesitation.
During the last two or three weeks
quite rally has taken place from the
extreme low prices since the opening
of the year. and this induced temporary
| selling on the part of traders. Stocks
however, are still low. and many of
the better class issues offer returns
|
| shrewd investors. The bond market
also shows a decidedly better tone
which is significant, and Europe has
| been considerable buyer OF the bet
ter class stocks and bonds. Already
the improvement has been sufficient
to encourage the early placing of long
deferred issues Perhaps the most
unsatisfactory feature in the situation.
next to the political outlook is the
| course of our foreign trade Exports
continue abnormally low, leaving. ow-
ing to large imports. heavy foreign
| Indebtedness which must be settled
either by gold exports or security ship
ments. AS Europe is unwilling to alb
| Sorb large quantities of the latter. and
AS conditions are not yet favorable
to reduction of our foreign indebted
ness, it follows that our position in this
| respect is not a strong one. The sit
uation will be further influenced by the
approaching maturity of many of the
short term loans which Europe took
in 1906 and 1907. The only cure for
this difficulty in our international
trade is lower prices for commodities.
~ Az 'Ai> ii16h ~ nc VI
which have been mainly instrumental
in bringing about these abnormal con-
ditiOns. Our exports of cotton bread
stuffs and meats have been materially
diminished by high prices. the same in
fluence having also abnOrmally Stimu-
lated imports. Unless the foreign
| markets come up to our level in prices
which is not likely. there can be no
cure for this difficulty except that. as
just said, of lower prices. This again
brings us to the great Importance of a
big harvest in 1910. Nothing short of
this Will restore our equilibrium and
preserve prosperity. The country is
sorely in need of larger supplies of ev-
erything that grows under cultivation
High prices ought to prove an immedi-
ate stimulus to agriculture. which now
affords profits not seen in many years.
The country is suffering from INSULT
cient production. and its salvation lies
in big crops for the coming season
Short crops would now prove peculiar.
~ disastrous, not only checking bus
mess activity, but creating dangerous
degree of discomfort, which would in
evitably follow any further increase in
the cost of food products. We are now