The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-01-03

sharp drop in prices which will offset
the gain in yield.
There has also been sharp decline
In wheat, resulting from the larger
crops in prospect abroad.
Cotton has been maintained at a
high level because of a crop inadequate
to a growing demand.
Should the tendency of agricultural
prices continue downwards, as is not
improbable, we may hope to see at
least a temporary return of our for
eign trade TO the normal condition of
large excess of exports. AS to the
gain IN railroad earnings, that was
probably more than offset by the large
increase in expenses which is justly
causing our railroad managers such
serious concern. For example, the
October report of the interstate COM
merce commission reported a gain of
S2,600,000 i'm earnings and an increase
in expenses of $13,700,000, showing a
loss In net earning for that month of
about $11 100000, which in view of the
increased capitalization Of the rail-
roads was anything but a satisfactory
result. The increases in expenses arise
chiefly from concessions made to labor
Statistics do not as yet show the full
extent of business retrenchment A
year hence, when we may be on the
high road to recovery, the picture will
be more plainly seen.
Real estate, usually the last to wit
ness the effects of boom, is much less
active, not merely in New York. but I'm
all parts of the country.
A few words only are necessary on
the financial situation; this topic being
covered in our regular weekly advices.
Wall street seems, as is its custom, to
have largely discounted this business
reaction. There has certainly been
greater fall in securities than In COM
modities, and because of this adjust
ment the stock market Is In a sounder
position than year ago. A decided
Improvement has taken place in both
the political and monetary outlooks.
Let 1t be admitted that the general
situation industrially and commercial
ly in the United States is not entirely
satisfactory, and that there is reason
to expect further period of settling
down to lower level The only SEN
sible attitude towards this tendency is
TO welcome IL as a wholesome return
TO the normal. If this reimbursement
for at present il is nothing more and
there are no signs of panlc-can be ac-
complished in a gradual and orderly
fashion, without sudden derangement,
the country will be vastly better off.
The outlook is not dark by any means.
On the contrary, If properly regarded
is really hopeful.
Because we have scared too high,
because the buying power of the peo-
pie has been exhausted temporarily by
extravaganza or too free expenditure
of capital, the only cure is for COM
modities to descend to a lower level,
thus stimulating fresh activity and
restoring the normal This can GER
tainly be accomplished without any
prolonged cessation of industry; and
in due season it viii be found that
prosperity can be continued even upon
lower basis.
What the country most needs during
the coming year is rest from political
agitation, rational treatment of BUSH
ness and social questions, and economy
in national state municipal and do
nestle expenditures. In this direction
will be found the true cure for pres
ent arrangement. The situation will
soon correct itself IL natural forces are
not unduly interrupted,
AS for the stock market. that is
likely to anticipate any business re-
covery especially as cheap money and
investment conditions are favorable to
rise.