Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-05-03
MEMBER or ASSOCIATED PRESS.
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cLEW's FINANCIAL REPORT

The financial situation this week
has once again given evidence Of un-
DERIVING strength. An excellent test
was the quarterly report Of the United
States Steel Corporation, which was
published after the close of business
Tuesday. This report fell very ma
terially below general expectations
in the matter of net earnings. The
exact figures as given were $23, SIS, 203,
while what were in advance consider
ed conservative estimates had ranged
anywhere from SIG, 100000 to $28,500,-
900. At London on Wednesday morn
ing the common stock of the steel cor
poration declined half a point. and
similar reduction took place in the
early market in New York. But a
general improvement then set in
which wass irregularly maintained
during the rest of the week.
This reception by the market of such
an unexpected showing is both signif
icant and impressive. 1t confirms
what has already ben repeatedly
shown in these advices, that securi-
ties are in the hands of strong people
who are we'll satisfied with funda-
mental conditions and are not to be
frightened into liquidation by spas,
modic influences. AS investments our
standard securities are upon a favor
able basis and it is wisely argued that
any reduction in dividends will GER
tainly not be general even If they
should occur in one or two instances
where current disbursements are not
justified by revenue returns.
We have in sight what is usually,
one Of the most potent factors in
substantial stock market, namely. a
period of protracted abundance of
money that can hardly fail to con.
tinue until the early autumn when
funds will be required to finance the
crops. Until then and pending the
development of activity in industrial
and commercial channels, this unem-
ployed money, as has been the case
in the last few months, will automatic
ally seek remunerative employment in
the stock market. Meanwhile, before
it is called back for use in these chan
nels. the Unsettled factors that are
now retarding general business will
have matured. BY this we mean that
the supreme court will have rendered
its decisions in the Standard Oil and
American Tobacco cases and tariff re-
visions as an influence of discourage
ment and unrest will, most likely have
been completed.
This general clearing of the situa-
ton the stock market will undoubtedly
discount. We have before US the cur
rent example of spectacular British
trade recovery from period of dull
ness and depression that. not unlike
our own situation, was caused pri-
marily by political influences. 1t will
be recalled that the British budget and
the contest over the. veto power on
appropriations by the House of Lords
upset British trade and caused a per-
iod of keen depression and unrest
throughout Great Britain. But thru
out this period the people continued
their usual functions as consumers
of food and raiment; and since the
political questions have been settled
Tor at any rate now that the House of
Lords prerogative has become the sub
ject of compromise) trade move
ment has set in that has assumed rec
ord-breaking proportions. This repre-
sents the natural accumulation of de-
mand by consumers. We, in this
country, are in very much the same
position DIS the people of Great Brit
ain were year or so ago. Our trade
and industry have been gradually be-
,~.-A:.,I -, D,oo Fifth Cn1