Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-08-28
HENRY cLEWs' REPORT

NEW YORK, Aug. 26-Sentiment
in Wall Street has been again dis
couraged by unfav0rable develop
ments. Chief of these have been an
unmistakable policy Of retrenchment
among the railroads and multiplying
evidence of slackness in general bust
ness. In addition to such influences
there has been a weakness in the
foreign markets attributable partly to
nervousness over the Moroccan situa.
ton and partly to selling of American
securities in the foreign markets. All
classes of business men at home are
more or less discouraged by political
uncertainties, the premature opening
of the presidential campaign, the hos.
tility to corporations and the practi.
cal certainty that the country must
face continuous tariff agitation. The
discovery that liquidation has been
quietly going on in Wall Street and
that insiders parted with considerable
amounts of stock sometime ago has
further tended to weaken confidence.
In all probability the latter fact was
the basis of operations of promin-
ent bear clique which has met with
considerable success during the past
few weeks.
The general investment situation
has been unfavorably Influenced by
the fact that banks, both here and
at other financial centers, have been
scrutinizing collateral more carefully
and lessening their holdings of bonds
and other securities, purchased at a
time when they had no other use for
their funds. With the approach of
the autumn trade and crop require.
ments, banking institutions find 1t de-
sirable to have their assets in liquid
form. The labor situation has, how
ever, been the principal cause of anx'
iety among the railroad managers, par
ticularly in the West. Evidences of
unrest have been disclosed and rum
ors were frequent and further contem-
plated demands for increased wages,
which the railroads are absolutely un-
able to concede. Net earnings of all
roads reported in June showed de-
crease of nearly four per cent and
the losses since then are probably
still greater. Since the companies
were not allowed to recoup their in.
creased expenses arising from higher
wages by an advance In rates, 1t Is
easy to appreciate the concern of man
ayers at the possibility of any further
demands. American railroad labor
has already been generously treated
at most inconvenient time. and fur
Their demands at this season would be
considered unreasonable and receive
general public condemnation. Re
trenchment by the railroads is becom
ing imperative, as they are the larg
est purchasers of steel and other raw
materials their new policy is of much
Importance in the world of trade and
industry. Business men look forward
to a quiet if not slack fall trade
Eastern roads dependent upon indus
trial conditions are likely to feel bust
ness reaction more keenly than west
ern or Southern lines which rely chief
ly upon crops.
These are the unfavorable elements
in the situation. They have unques
tionably been larger, though not fully
discounted by declines of ten to q
points in the stock market. The ad
verse influences should, however, b.
partially counteracted by influences
of a favorable nature. which the pre-
| vailing pessimistic temper is apt t.
ignore. We are facing no crop dis
aster. On the contrary, average crop
of wheat and corn are practically Gel
tain. and large yield of cotton is tn
present indication. Easy money i
expected during the remainder of tn
year. Congress has adjourned, TO
which thanks should be devoutly 81,
en-. The country will now have a ten
porary rest from legislative meddlin
and inquisatorial Investigations. Gu
foreign trade is in excellent condition
showing large export balances, an
the prospects are for. continued larg
Il o$A0~ -