The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-12

A further broadening tendency has
been shown in the financial situation
this week. The market for Stock Ex-
change securities may now be regard
ed as having reached the stage where
1T is performing its usual function of
discounting not alone the agricultural
prospects but also the improvement
in trade and industry that i'm turn will
follow the satisfactory yields of our
farm lands that are in prospect. On
Thursday the Government issued its
grain report, showing conditions as
OF June l. AS usual there was some
deterioration in winter wheat during
the month of May, but the outlook, in
view of the increased acreage this
year, is for an outturn of approximate
iy 4SO,0o0,000 bushels. This, if full
filled, will mean a harvest that has
not been equalled since 1906. 1t is
worth recalling that at this season
the winter wheat crop is fairly well
assured Harvesting is already in
progress in Texas, Oklahoma, Mis-
souri, and Kansas, and another fort
night or three weeks will place winter
wheat as an assured asset for 1911.
The Governments initial report on
spring wheat, just issued, is also an
encouraging feature, the condition of
94.6 confirming the known favorable
seeding conditions. The area showed
an increase Of million acres, and
the outlook is for yield of 2s4,370,-
600 bushels, which compares with the
final harvest return of 233,399, 900
bushels last year. No official report
on the area planted to corn will be
available until month from now, but
usually reliable advices from the lead
ing centers of the corn belt suggest
that this, which is the most impor-
tant crop, will also demand recogni-
ton in the list of favorable stock
market factors. AS was noted last
week, the cotton crop, as well as the
condition of the plant, are we'll above
the average, so that to those who look
to the agricultural sections of the
country as their guide for stock mar
ket operations the outlook is one of
distinct encouragement. But we should
not forget that it would be an abnor-
y
crop scares and exaggerations. Thus
we are upon the Threshold of what
may be termed the crop market sea-
son, which means a period of active
fluctuations in security values and op.
portunities for alert and weil-inform-
ed traders to make substantial profits
Some part of the weeks early firm
ness undoubtedly represented prepa
| rations by experienced operators to
| take advantage of the semi-annual
dividend and interest disbursements to
| be made in July. Last year these dis
| bursements amounted to $2O5, 000, 00C
and it is probable that this years to
tails will exceed that figure by con
siderable amount. The policy of dis
counting the reinvestment of some
part of these distributions is one Of
the Oldest professional practices in
financial circle:. II is, it is true, q
highly indefinite question OF how
large a proportion Of these distribu
ltions are each recurring season rein
vested in securities; but there can be
no question that in normal times the
amount is sufficient to justify careful
recognition as factor in the market
Experienced operators, therefore, an
| ticipate by their own purchases the
purchases that will be made by re
cipients of these dividend and inter
est payments when the latter actual,
have their cash in hand. January anf
July are the months of greatest vol
ume in this respect.
General business, it is true; has no
yet shown appreciate increase in vol
unie. and the iron and steel industr,
seems to be awaiting to some extern
on the result of the Congressional in
vestigation, that is now in progress, o
the position and influence of the Uni
ted States Steel Corporation. Tn,
market has been temporarily influenc
ed from time to time during the weel
by reports that the Government hat
decided upon legal actions in connec
ton ON the operations of the Stee
Corporation. But these reports car