Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-12-25
MONDAY. DECEMBER Is, 1911.
BUSINESS is QUIET

BUSINESS is QUIET.
Holiday quiet overshadows the
stock market. This is the period fol-
closing accounts, stock taking and
other operations incidental to the
close OF the year. Aside from actiyi-
ties connected with the holiday trade
it is apt to be one of the dullest per-
iods of the year. In the stock market
proper it is usually a time when
every effort is made to anticipate the
effect of January disbursements
This year these are estimated at
over $220, 100000. The question aris-
es will the usual proportion of this
sum come into Wall Street for perm.
anent investment? There Is some
reason to expect that it will not. The
main reason Is the high cost of liv
ing for all classes. Whether this be
due to high prices. to extravaganza
or to higher standards of living mat
tiers little. People are certainly saw.
ing less, and as all new capital must
come from the nations savings it
follows that there will be smaller
proportion applicable for investment
purposes than usual. Another ele-
ment in the business situation is that
the high cost of living compels in.
vestors to seek and insist upon the
largest returns possible on invest
,>"pents. The same tendency towards
/ter returns arises from another d.
kction-namely, that a reduction IN
the supply of new capital will oblige
those who want it to pay higher
rates. In short, as result of exist
ing conditions, capital is going to
command better wages just as labor
has already succeeded in doing
What the effect of this will be upon
the financial situation remains to be
seen. 1t is we'll known that our
large railroad corporations have spe.
cial needs for new capital next year.
and to find buyers it is evident that
they will either have to place them at
comparatively low prices or else pay
somewhat better rates of interest In
all probability the present year will
be a record-breaking one in the issue
of new securities owing to the excep.
tionally heavy output during the first
half of the year. During the last six
months the issues have been held
back because of adverse conditions.
Should the investment outlook be.
come more favorable, it is quite
likely that there will be a flood of
new offerings. The requirements of
our railroad systems to meet the
pressing demand for better terminal
facilities in our great cities are sure
to be exceptionally heavy. Doubtless
there is an abundance of capital
awaiting investment, particularly if
confidence becomes more firmly es-
: tarlished, but between the necessity
cofs raising much new capital and the
fnaistence OF investors upon profita-
bic returns it is a problem whether
there is much chance for any pro-
longed rise in values. Should the
market be pushed much higher it
would materially check this demand
General business is quiet. Condi-
tons, however, appear sound. There
ia not so much complaint about the
volume of business as about profits.
In the interior a rather more cheer.
full tone prevails and bankers at the
West anticipate moderate. but not
very pronounced Improvement. 1t
must be remembered that last year
as not a season for big crops On the
contrary the total yield was slightly
below the average. There was one
striking exception. The South pro-
duced crop of cotton far beyond ex-
pectations and much too large for
current requirements. Some author
tiles estimate the yield at fully
7Oo0. 900 bales more than can be pos
sfblv consumed. The result is an alb
normally low price for cotton. OF
course, there will be sharp curtall'
:. muent in acreage during the coming
surine, and the cotton left over must
be carried either by the grower. man
ufacturer or Spectator to rlske goo1
any possible deficiency next year
The low price Of cotton is naturally
4 serious disappointment to the
South. The losses from this cause
however are evidently being exas'