The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-09-03
Eastern Situation, Boiled Down,
Is Believed Due to POliti-
cal Situation.
METHODS OF DOING
BUSINESS UNCERTAIN
Yet There Are a Number of
Favorable Elements in the
Outlook.

has an extended article discussing the
various phases OF the present market
situation. This VIII prove interesting
holiday reading. and in part 1t follows:
'"The extraordinary feature of the
present securities market is the fact that
no competent authorities seem to be able
10 give reasonable explanation show
ing what the cause OF the trouble is.
For 1t has been pointed out by some
OF the bankers who have been looking
into the situation that II Is no eXplana-
tion 10 say that the depreciation OF the
prices is due TO the fact that large In
vestors have been selling stocks almost
wholesale dumping them by Great blocks
into the market The statement OF this
fact Is no explanation. for II does not
show why large investors are dumping
blocks of stocks upon the market
1T may be worth while however, TO re-
port in general way some OF the views
expressed by men whose opinions are at
least worth listening TO.
First OF all. II Is observed that there
prevails an almost unanimous opinion
that good many of those who have been
prominent In railway or industrial man
agement. and who have been large In
vestors in securities, looking for n great
revival of business activity, have become
somewhat discouraged. fearing that the
United States must undergo a period Of
something like socialistic or very radical
political activity. II is not question OF
whether or not this apprehension be JUS
llleus lS IdtL lldl II urtH tSISN -tii'l
that some men feel that they are about
ready 10 retire 20 private l!fc, or do as
some Of our greater bankers and capi-
talists are now dolng-go 10 Europe TO
mon 10 explain I'm part the prevailing
depression of the securities market,
More Vivid Apprehension.
''Thcn. again. there does prevail an ap
prchension that some OF the railway COM
panies of the United states may find II
incumbent to reduce their dividends. So
1t has been said by several Of those who
have been closely watching the course
of the market that II is their impression
that a considerable part of the depression
curities are due to the fear that some
railway and Industrial companies viii
find II necessary To make smaller returns
10 stockholders.
Another factor Invariably spoken OF
by those who arc paying somo heed to
this depression is the disappointment due
10 the failure OF the harvests TO fulhll
the promise Of the spring. Our people
licving that the American harvosts for
1911 were TO make a new record They
undoubtedly would make a new record
had IL not been tor unfavorablc climatic
conditions, for this year the farmers have
shown an energy and an industry UNI
surpassed by them in any former year.
What it Portends.
"unless the prcccdents are OF no avail
this year this summer depression IN the
securities prices must. be regarded as
forecastinS considerable depression IN
business next fall or next winter. For
all the indications point 10 the fact that.
whatever may be the direct or indirect
causes for this midsummer depression,
clearly discounts the immediate future
of business boom securities market
discounts the revival o. business. Cen
cral business throughout the United
=. L. ,-s.aI. l,og,.-
conservative although some OF the OBJ
servers report that a good deal OF under
lying strength Is discovered in the lead
ing business lines.
cline which should cause some gratifica-
tIon Is the fact that it has been. on the
whole. OF quiet and unsensational and
orderly character. This feature of the
decline seems to Justify the hope that
after the crops begin 10 boom the mar
kcts there may be some recovery IN
prices. But IT is almost inevitable that
business dullness and market dullncss
prevailed during the summer.
The Bright Side.
''None Of those who have expressed
opinions as to market conditions and The
reason for them has failed To speak OF
some very encouraging features OF the
situa lon. One Is the BnqucStiDned
soundncss of the money situation. What
ever else that is conceivable may happen
this fall there appears 10 be no danger
of an unfavorable money market
''If the depression continues and lGui-
dation in securities Is maintained, the
probabilities are that money will become
more and more plentiful, the very plenti-
tude OF It being likely TO stimulate. By
and by Investment or development OF aC-
tivity. All the bankers report the condl-
tion as unsurpassed so far as freedom
from speculation is concerned. There is
no doubt about the strength of the bank
Ing situation In the United States
"In fact the money situation. The very
healthy condition of the banks Of the
country. the limiting OF speculation, and
the soundncss OF credit ali seem. I'm the
view OF some OF those TO whom Inquiries
are put. Ia justify tho belief That. after
all. the chief cause for the depression in
the securities market may be traced 20
political and legislative agitation and TO
the confusion and uncertainty which
many business men feel respecting the
legality OF their business operations. The
Indictment and criminal prosecutions oil
the Roebings, Herbert Sattcrlee. Charles
T. BrookeT and many others who were
found to have violated the law and who
were punished NY fines have had the ef
NJ ms many busiupgS useu very