The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-09-11
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

sary importations and to preserve our
balance of trade.
With the adjournment of Congress
there is welcome cessation of the ag-
itations and investigations which have
so long harrassed the business world.
Congress will not reassemble for an
other three months, during which per-
iod we shall have rest from useless
and irritating political meddling.
There are signs of reaction in the lat
ter respect. Politicians in some Sec
tons of the country are awakening to
the fact that the driving of capital in
to hiding by persistent attacks throt-
ties enterprise and thus augments
trade depression and the number OF
unemployed. Capital is necessary to
the quickening of industry, and it
would not be surprising if some of
the states took the lead in moderat-
ing present unduly repressive legisla-
ton, especially in the South and far
west. When congress opens there
will of course be much talk about the
tariff The fact that it is the best
available political asset makes that
discussion inevitable. 1t is not likely,
however, that there will be any SER
ious readjustment of the tariff until
after the next Presidential election.
In all probability the tariff will be the
burning issue in the coming guberna-
torial campaign. There will be much
talk and little action.
The change of sentiment on the
Stock Exchange was possibly some
what accentuated by covering of a
rather extended short interest. Prices
had shown very heavy decline, from
10 to 20 points, and it was apparent
that this shrinkage, discounted all
known drawbacks. In addition there
was feeling that pessimism had been
overdone and that at least a moderate
reaction was fully due. Such views
had been expressed in these advices
for the past two or three weeks and
recent events proved the accuracy of
these conclusions. The market is
still two-sided and favorable to moder
ate fluctuations in either direction. On
every decline there have been con-
spicuous buying, especially of the bet
ter class of stocks, which are being
quietly absorbed by shrewd invest
ors on every concession. In August the
amount of new capital issues was only
a little over ISL, 100000, against $685.
100000 last year and the $83,00O,0O0
a year ago. 1t was the lightest August
in this respect for many years and
shows a welcome conservatism in the
output of new issues, which had I'M
doubleday been so heavy as to temper
arily induce congestion in the securi-
ty markets. Another favorable indica-
ton was the starting of many cotton
mills throughout New England. These
had been shut down owing to the high
price of cotton and the shrinkage in
demand. The latter has lately been
T, stimulated by price concessions, and
the outlook for cheaper cotton than
last year affords much needed en-
couragement to the manufacturer.
New York is not the only place that
is undergoing a change of sentiment.
London, Paris and Berlin have also be-
come rather more cheerful, mainly be-
cause of change for the better in the
Moroccan situation, but also from a be-
lief that known drawbacks have been
fully discounted and that pessimism
was being overdone.
Henry Clews.