The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-07-31

ANY comnF6 henSiSe view OF the out
look for the financial market this
week merits careful consideration of
foreign affairs even more than of de-
velopments at home. Growing out OF
the Moroccan rivalries of France and
Germany international relations Of
the great powers of Europe have
reached a state Of such keen delicacy
as 10 require most skillful touches OF
diplomacy. of good and calm judgment
and honest endeavor to prevent what
promises to reach very close to a ser
ious elimination of what at first ap-
peared petty affair
do not suggest that actual warfare
will be the result. Present day civili-
zation would not permit such an unnec-
essary waste of human life and de-
structlon of property. Nevertheless,
those OF us who have closely followed
European history for half century or
more canot fail to recognize in the
| Franco-German controversy the spark
| of fire that has long been shoulder
| ing. ready on the slightest encourage
ncnt to break out into conflagra-
! ton that might readily become I'M
| ccntrollable
| Under such circumstances European
| financial centers have before them a
period of nervous tension. Today
| there is but one money market-a
worldwide market-of which London,
New York. Paris, Berlin and other cen
ters are mere branches. and rise or
fall in sympathy. Until the European
| political outlook clears. therefore it
is not unlikely to exercise a retardins
| price level
| At nome. conditions are more fav.
orable. Unsettling influences against
which the financial markets have had
10 contend for year or more are one
| by one being eliminated. and in a
| fortnight or so the slate will have
been cleared An important develop
ment of the week in this connection
has been the Interstate Commerce
| Commissions decisions confirming its
previous position in ordering reduced
rates for freight transportation in
| Rocky Mountain territory. These de-
cisions are IN what are known as the
have been keenly watched in railroad
and financial circles for a long time
because of the accurate test they were
, expected to provide in the matter OF
the long and short haul cases in the
| Interstate Commerce Act. The de
! cisions mean some contraction in the
| revenues of the large Western trunk
lines. but it is most likely that the
practical working out of the Commits
sion's rulings will not prove as drastic
as railroad men were inclined at frs,
to believe. At any rate, if rates were
excessive, as has been shown by the
Interstate Commission, they should be
moderated, and it may be taken fol
granted that proper rates for the trans
portation of merchandise will in the
long run rebound to the benefit OF
the carriers by providing compensa
tory increase in the volume of mer
chandise demanding transportation.
The second important influence O.
the week at home has been the enact
ment by the. New York State Legisla
ture of a law which extends for five
years the period in which the large
insurance companies may dispose Of
the securities that they are not now
permitted to carry their SURPRISES in
Had this amendment to the Arm
strong law not been enacted, it would
have meant that securities amounting
to more than sS0.00O,O0O must have
been sold before the first of Januar.
or the officers Of the companies would
personally be criminally liable. AS i
is. the companies will now have am
pie time to dispose of these securitie!
without the spur of time limit. 1
should be understood that thes'
stocks that are held by the insurance
people are in most instances highl,
conservative investment stocks, ant
the liquidation is merely in Response
to the requirements of the Armstron,