The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-03-27

The better undertone noticed in
these advices during the past two
weeks is making slow but certain pro-
Gress. Notwithstanding the dullness
in business there is a distinctly more
cheerful tone in financia. circles. The
main influence contributing to this
change is the abundance of cheap mo-
ney. In all parts of the world there is
ii plethora OF idle funds at low rates,
and this is especially true OF the Uni
ted States. TO a limited extent this
is result of continued large gold
production; but it is mainly due to the
inactivity of business and speculation
which causes funds TO accumulate. and
TO decline in commodities enabling
given sum TO go further
The greatest accumulation of idle
money is at New York because inter
Tor banks force their surplus upon their
New York CORES pOndents i'll the hope
that the latter may be able TO find
employment even at low rates. At the
moment there is a good deal of nearby
money in New York. which is not like
| ~ to be required for the next three
or TOUR months. Europe owes us large
sums on account OF security purchases
and in payment for our exports. and
under present conditions it pays bet
abroad as loans. Later on in the year
when the interior begins to withdraw
its funds from this center then if not
sooner, we may expect gold imports
upon liberal scale This week cur
rency shipments to the interior have
been on more liberal scale owing to
preparations for April settlements, af-
ter watch these funds will return to
New York
During the eight months of the fiscal
year. or up to March /. our foreign
/ trade showed an excess in exports
over imports of $41S,000, 900. compar-
ed with an excess of $1SS. 000, 900 a
year ago. This is turn for the better
of S230,000,0o0 in our foreign trade
balance; a change of almost startling
and certainly very encouraging pro-
portions. Conditions are such as to
favor continuation of this tendency.
for commodities are declining here and
tending to rise abroad; situation
which naturally discourages imports
and stimulates exports. In the two
months Of January and February our
exports were S104 900, 900 larger than
in the same two months last year. and
left d trade balance in our favor of
1927 100000.
Crop reports with few exceptions are
of a satisfactory character. The win
ter has been a favorable one for both
the soil and winter wheat, a liberal
covering Of snow and plenty OF mOiS-
ture having done thus far all that ma
ture can to secure the next harvest.
All indications point to liberal in
crease in the acreage of our principal
crops. also a marked increase of care
in cultivation. The farmer equally
with the manufacturer will now be OBJ
liged to consider efficiency and econ
omy; only in his case intensiiication
will be the policy, the object being to
secure a larger product per acre along
with higher degree of quality.
1t will be argued by some that bust
ness reaction, tariff agitation. SUI
preme Court decisions and other UNI
favorable conditions with which we
are all familiar will prevent any i'm
provement in the stock market There
is one reply to this argument, which is
that these conditions have been known
for months and are thoroughly dis
counted. They no longer have the et
feet upon the market which they once
had. For months Wall Street has been
the most pessimistic spot in the coun-
try. and this when business and in
duStrial activity was at its height. The
truth is that Wall Street was then dis.
counting in advance situation which
! is now generally recognized. 1t may
not be pleasant. still it is proper &c
| call attention TO the fact that Wall
| Street was correct in its prOgnostica
tons. No doubt it is equally correct
| in now assuming a more hopeful at
| titudc, for today Wall Street is un