The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-11-27
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

Beyond question favorable condi
tons predominant in the stock market
There is a spirit of confidence and
cheerfulness developing which is II
striking contrast with what has pre-
vailed for many months. We still have
with US the pessimist and the timid:
but these classes are always present
and though acting as a restraint upon
blind optimism cannot long hold in
check the growing spirit of rational
confidence now appearing.
A wide range survey Of the situa'
ton shows many changes for the bet
ter There are, for instance, better
trade conditions because stocks OF
merchandise are much below the nor
NAL and price concessions are often
acting as a stimulant to purchasers.
The credit situation in all parts OF
the country is better than for many
months, and borrowers in good stand
ing have no difficulty in securing all
reasonable accommodation upon favor.
able terms There Is a decidedly bet.
ter outlook to the steel indsutry,
which must still be regarded as one
of the best. II not the very best, trade
barometers. After fully two years of
economy the railroads are at last com
PEELED to place liberal orders for rails,
cars and other equipment; this to re-
new wornout plant. Such orders in
the aggregate have been large enough
to impart considerably more activity
to certain branches of the steel indus
try, particularly steel plates. Prices
of steel have been very low and the
fact of recent purchases will serve to
the ideas of producers and
thus bring orders from intending pur-
chasers who had been waiting to see
the market touch bottom. The steel
trade has already found substantial
and really reached turn
for the better; the indications being
that in event of any further increase
in activity prices will show a harden
ing tendency.
There are also better conditions in
the textile industry, which ranks next
in importance to steel. The great
fall in cotton may have embarrassed
some manufacturers who loaded up
with the staple at higher prices. but
the larger proportion of manufacture
ers will benefit by cheaper cotton
which in the long run must not only
the industry. but give the
consumer cheaper fabrics and tend to
increase consumption. There is no
vxk, hot
trade and the textile industry have
seen the worst of the crisis, have
turned the corner and are now NOV
ing forward to better conditions. Tariff
are the chief obstacles
at the moment, but these will soon
come up for adjustment and the prob
abilities are that no very injurious
changes will be made in any of these
1t is only where excessive
has been enjoyed that
sharp cuts are likely to be made.
There is also a better sentiment in
circles AS revealed by the at
titude of our financial leaders toward
the stock market and in their prepa-
rations for the placement of new Sc
curity issues. We are now approach
ing the largest dividend season when
the demand from investors Is always
upon in advance as a strength
ening element. 1t is worthy Of particu-
lar attention that dividends on both
railroads and industrials have been
we'll maintained in spite of recent
business depression. This result has
been largely obtained through econ
omy and the postponement of many
renewals and repairs. The railroads
have Jared better during the latter
half of the year than expected, and
are now beginning to show better
gross earnings. There has been no
important diminution of traffic as some
timid managers predicted. and with
better ct results there is every rea-
son for increased confidence in rail-
road shares. particularly those of the
higher grade. The cheaper issues,
however, will of course show the most
recovery, for the reason that
they were the chief sufferers from
the fears and disturbances which are
now passing away.
There is also a much better political
A week hence Congress will
open and the country must be pre-
pared for shocks from proposed radi-
cal legislation. The presidential CAM
paign has been prematurely begun. 1t
Is fairly under way. Sensational at
tacks must be expected for political
effect. This should be regarded. how
ever. with reserve and recollection
Of the fact that the conservative ele-
ment often rests in the background
until the Anal struggle. when it usually