The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-10-23
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

I
A moderate degree of improvement
has taken place In the financial mar
kets, which should make further pro-
gress II nothing unfavorable inter
venes. The most powerful influence
upon values at present is the abnor-
NAL plethora and ease of money. This
is usually a period of approaching
stringency owing to crop demands and
activity in trade. Quietness in the lat
ter respect causes funds to accumu-
late, hence our ability to lend many
millions abroad, when. under ordinary
conditions. We should be considering
gold imports instead of gold exports.
Such an unusual condition in the
money market when banking condi-
tons are generally sound can not but
have strong supporting influence
upon security values.
To the ordinary buyer stocks look
cheap when the returns with current
rates for money; and with the partial
revival of confidence that has already
taken place there has been some i'm
provement in the investment market.
showing itself particularly in the
greater activity of bonds. There are
indications that the bond market is
receiving stronger support from bank
ing interests who wish to have the
market in better condition for impend-
ing bond issues. 1t should not be for
gotten that municipalities have been
waiting for favorable opportunities to
make new loans and that our railroads
are still in need OF large sums Our
eastern trunk lines have only recently
been obliged to put hur .reds Of mil
lions into improvements and termi-
nails to meet the rapidly growing traf-
| fic. which practically doubles evary 10
years. Many of our western roads are
vastly more deficient in terminals and
modern improvements than eastern
roads, and during the next few years
enormous OUTLAWS will be necessary to
meet these imperative demands For
nearly six months the railroads have
been practically out of the market as
borrowers. improvements have been
curtailed and rigid economy enforced
owing to the frequent shrinkage in
traffic and a heavy increase in ex-
penses arising from higher wages. In
! some cases economy has been carried
to point of starvation, and the rails
ing of funds to carry on needed i'm
provements will soon be a matter of
absolute necessity. In all probability,
therefore, we shall see ere long re-
newed applications by the railroads
for new capital, whether in the form
of bonds or short-term notes remains
to be seen. The money market is in
good position to finance such move
ments, provided the terms are salts
factory to investors who are likely to
insist upon good returns.
| Another satisfactory feature in the
situation is the continued expansion
of our export trade. In September our
agricultural exports amounted to $685.
10000 the largest September on rec.
ord, and more than $14,000.0 900 in ex-
cess of this time last year This in
crease in exports was fortunately well
distributed between breadstuffs, pro
visions and cotton. The lower price of
the latter is greatly stimulating the
outward movement, and the October
returns for exports are also sure to be
gratifying. This creation of a large
export surplus is the natural result Of
lower prices and has brought our for
eign trade back to normal position
thus further strengthening American
credit abroad and enabling us to re
call our loans there whenever neces
sary.
There is one other satisfactory fea.
ture which should not be overlooked
and that is the more reasonable atti
tude of our Industrial leaders toward
the mandate Of the supreme court re
garding monopolistic combinations
These gentlemen are now taking I;
calmer view of the situation. The,
recognize that obedience to the Law
Is imperative. They recognize also
that real property Is not going to be
destroyed. Later on they will learn
that the restoration of the competitive
basis and the check to monopolistic
power which has recently been applied
will place them in a much better atti.
tude toward the public and save them
from many of the legislative attacks
which have been SO disturbing in the
past. In some cases abnormal profits
may be curtailed, a matter which will
be of benefit to the consumer But
the consequent loss in dividends will
be no greater than might be antici
pated at any time from trade reactions
and nobody believes otherwise thar
that these great organizations will BE-
abundantly capable of securing their
share of the country's business upon
a reasonable profitable basis. Our mo
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