The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-05

periods of business depression. arc
marking down their quotations to OBJ
tain whatever little business Is avail
able. This brings the larger corpora
lions into the positions of holding the
bag for their smaller competitors, and
when in time tas was recently develop
eda the smaller people are found to be
getting too large a proportion of the
limited business that Is offered, the
larger people are finally forced to
meet the lower range OF prices. The
effect will, in the long run. prove bene-
fetal to business. since the fear OF fur
Their price reductions is now quite gem
orally removed and railroads, build
ers and others requiring construction
material will feel that they can enter
their contracts without fear of their
competitors later on securing more ad-
vantageous terms. The steel price
reduction therefore may. believe. be
considered in the light of a reassuring
influence in any iong-range view Of
the stock market situation.
The prospects for the harvests con-
ing the next few weeks. These pros
poets constitute the fundamental in.
fluence on which experienced opera
tors base their market calculations.
Complaint of dry weather in some win
ter wheat sections has been heard this
week: but this has not assumed I'M
portant proportions. and it is always
"a In
damage that is local can at times be-
come quite serious without In any way
affecting the country's production a
whole. 1t is well to recall, for in.
stance, that the winter wheat area this
year is, in round numbers, 4S9 million
acres. Local damage could. therefore,
be severe and even quite extensive
without in any appreciable degree at.
fecting the general result from such q
tremendous expanse Of territory. In
Texas. Oklahoma and In some parts
of Kansas winter wheat harvesting is
already in progress. and every day
from now on will mean just so much
additional area out of danger from
either drouth of insect life. Spring
wheat. according to authoritative &C
counts, is from one to two weeks IN
advance of normal. and is also doing
very nicely. The Government will is.
sue on next Thursday it's monthly re-
port on grain conditions, and it can
hardly fail to prove satisfactory
document. The cotton acreage THE
year reflects the stimulus of high.
priced cotton. The area is about 6
per cent in excess of last year.
Another influence that merits active
appreciation is the continued abun.
dance of money available for invest
ment. The recent offerings by under
writer's Of new securities have been
taken with Spectacular activity by in.
vestors; and with additional offerings
to be made in the near future the ct.
forts of large financial interests will
most naturally be enlisted on the ia.
vorable side Of the market in order to
facilitate the success of these approach
ing distributions. During the month
of May the issues of new securities
reached $155, 700, 900, or within $37,.
100000 of the large movement OF
year ago. The activity and success in
introducing American securities on the
Paris market are also feature OF
strength, since each listing abroad
represents virtually just SO many Sc.
curities taken out of our own mar
ket. 1t is we'll to recall that 1t Is not
our securities themselves that are list
ed in Paris, but certificates repre-.
senting them, and fir which they con-
stitute specifically deposited col
lateral.
Distinct recovery in the tone Of the
market was evident during the clos
ing days OF the week, with every In
dication that the large interests have
the situation we'll in hand The Inn
mediate outlook suggests a continued
favorable market for alert traders.
with frequent opportunities to be TAX
en- advantage of for good sized profits,
now that the Supreme Court decis-
ions are out of the way. The outlook
is for higher prices and increased &C
tivity in the security markets Of the
world, the New York Stock Exchange
leading. The crop situation will here
after be the ruling factor In the ups
and downs OF prices for some time
ahead. II the crops turn out as now
indicated ! see nothing ahead that will
prevent return OF business activity