The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-10-16
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

The business situation is uneven
In some districts, particularly in Sec
tons of the Northwest, where crops
have fallen below expectations or
where excessive speculation has pro-
duced reaction, business is below the
normal. and bankers in those sections
report reactionary tendencies. On
the other hand, where crops have been
good, there are no signs of reaction.
and an optimistic feeling still prevails.
The fact that farmers are still obtain
ing good prices for their products and
are sure of year of fair though less
ened prosperity, gives general trade in
such regions a substantial basis for
confidence. That trade is fair in vol
ume is proved by railroad earnings,
which as rule are we'll maintained.
gains. The chief complaints of rail-
road managers arise from the heavy
increase in expenses and the frequent
heavy losses in net earnings.
The most prosperous section of the
country is evidently the South
Though the cotton crop is spotty, there
is no doubt but that we will have
bumper yield, some good authorities
estimating as high as 100000 bales
and over. Texas alone is expected to
produce between four million and
four and a half million bales. The
price of cotton has fallen sharply in
consequence. but the enormous yield
even at lower prices means prosperity
for the Southern farmers and a large
influx of good money into the South
Nothing is heard now of those who
were foolishly advising the farmers to
hold their cotton for lac and 15c. The
facts have laughed them out of ex-
istence. Better for all concerned a
large crop at moderate prices than a
small crop at high prices.
In the iron and steel trade there is a
fair degree of activity, but while the
volume of business is still below ex-
least served to stimulate orders. At
the moment the railroads are very
small purchasers of material, because
of necessary retrenchment in expenses
and because of the impossibility of
placing new issues under existing fl
nancial conditions. Meantime, the
needs of the railroads are accumu-
lating and it is only question of
time when they will be compelled to
enter the market as buyers upon a
large scale. Economy cannot indefi-
nitely be carried on to the verge of
starvation. Perhaps the most salts
factory signs of improvement to be OBJ
served anywhere are in the cotton
goods industry. After the protracted
spell of lessened consumption and.
high priced cotton, manufacturers find
themselves materially relieved by the
sharp decline in their chief raw ma
terial. The drop in cotton not only
enables manufacturers to adjust them
selves between the cost of production
and selling prices, but also stimulates
the demand for goods by enabling
distributors to make more attractive
prices. Supplies of many lines of cot
ton goods have been much exhausted
by prolonged curtailment of produc-
ton, and there is every indication that
the cotton mills of the country which
turn out annually about $5OO,00O,0OO
of fabrics will soon be more actively
employed. In other branches of trade
business is quiet and of a hand-to-
mouth character. Collections have
been slow, but there are no reports
of unsoundness or general overpro-
duction. In Wall Street there has
been a distinct improvement in SEN
timent and moderate hardening in
values. A feeling that all known un-
favorable elements had been amply
discounted is gradually extending. Re-
actions may come, but under present
conditions there is not room for any
further serious depreciation in values,
and the outlook favors advancing rath-
er than declining prices.
One important element of support
is the abundance of cheap money
There is much necessary discrimina-
ton in the making of loans, but good
borrowers find no difficulty in secur-
ing all the accommodation they need.
Many good stocks now carry them
selves at profit on present money