Bisbee daily review., 1911-01-19
SITUATION IN BUSINESS
 NOT GOOD

The stock market is working be- tween two conflicting conditions; v... a strong technical situation. but a somewhat unsettled outlook as to natural conditions. The strength oi the situation lies in the fact that securities are in strong hands, that weak accounts have been eliminated. that speculation is within very mod crate proportions, that prices of stocks and bonds are considerably below the high level and that they yield much better returns to the investor than formerly Another i'm pOrtant factor sn The stcck market is the expected case in money for some time to come, arising from the return of funds from the interior and from a lessened demand for business purposes. It must also be taken into consideration that the big banking interests of the coun. try are enlisted on the side oI higher prices. Their function Is to finance the great transportation and industrial organizations of the coun- try; and it so happens that our railroads are in pressing need of large supplies of ney capitI. This means that many millions of new securities will have to be placed during the current year: hence one Of the strongest reasons for keep ing the stock market in a condition ready for the absorption of these forthcoming issues.
 Such are some of the facts which explain the present resistance of the market to unsettling influences. On the other side of the account there Is an unsatisfactory bank situati3n In certain portions of the country. resulting from the enormous exDsn- sicn of loans and the latter's coz. tinied excess cger deposit. It should be said that inera js sume improve. Dent in the mFter If loans owing ic the recent conservative attitr de or Western bankers: but there is still a considerable strain in cer- tain portions of the interior. arisine rom excessive land speculations. fri. SaJlon schemes and the increased bor- rowings Of farmers for buying cat He and carrying crops. The Western situation as a whole is unauestion. ably improving, albeit there are still points of weakness -.bich will probably have to be eliminated Tho local bank failures, being confined to weak and unimportant concerns. We're without particular signifIcanee and had little effect upon the New York market.
 Ihe most serious interference with activity on the Stock Exchanse Is the uncertainty attending the ou and Tobacco eases and the raiIrosd rate question. No general resumption oi activity can be expected until these important problems have been -haiiy adjusted If the decision prove unfavorable the market msy not show any serious reaction. for in each case the parties concerned are undoubtedly prepared to adf,s, themselves as far as possible ID the
 
 worst In any event it is recoen,z.1 lhat the production, distribution and consumption of oil and tobacco vii,
 70 on practically as before; changes !" ofsahization not being likely 10 cause any cessation of demand or any serious diminution of profits here IS moreover some belief tba+ The railroads will secure moderate concessions in certain instances No uouot the railroads are making their
 ase as strong as possible: for fhev nave entered period of business re- aceion' facing heavy increases in on.
 iatins expenses, and imperative dc ilahos Tor increased facilities. The rate question is a complicated one because in some sections Q fine