The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-02-20
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

The event of the week was an i'm
portant change in the management of
the Gould system of roads and the
turning of them over to prominent
banking interests. The talk of con-
test for Missouri Pacific was unbound
ed for the reason that these negotia-
tons have been going in friendly
manner for some time past This
transaction eliminates one more weak
spot from the financial situation. And
now that the Gould properties have
fallen into exceptionally strong hands
the probability is that an era of re-
construction and upbuilding is in
store for these lines. Whether they
will be remculded into an independ-
ent system or whether they will be
parcelled out among other systems is
not yet divulged; but it may be ac-
gers have important plans in prospect
which will ultimately affect the rail
road world favorably. In any event
this deal removes an important ele-
ment of uncertainty from the market
and should add to the stability of val-
ues in an important group of rail
roads.
Following the advance of 10 points
which has taken place since early De-
cember there was continued realizing
and taking of profits. This distribu-
ton of stocks heretofore held in
strong hands naturally weakened the
and outside conditions show an i'm
proving tendency. but owing to the
continued conservative attitude of
| banking interests there is no DISPOSE
ton to foster undue speculation. As
expected the bank of England rate
was lowered this week to 3h per cent
this action emphasizing the easy and
improved condition of monetary af.
| fairs in London. In Paris also there
| is an abundance of 1oanable funds,
and throughout Europe financial and
industrial matters are in better form
than for some time past. This fact is
of course. favorable to the placing
of American securities in foreign mar.
kets. During the last two months
Europe has been liberal subscribe,
to our new note and bond issues, with
out which it would have been diff
cult if not impossible for American
railroads to obtain the funds which
they imperatively required to carry
on contemplated improvements and
extensions.
| In general business the outlook il
more cheerful Trade at the west
shows signs Of recuperation and the
impression is gaining that the tide has
turned. Wheat and cotton are declin
ing from their recently abnormally
high level, a factor which will helI
foreign trade, stimulate business act
ivity and aid in reducing the cost OF
living. There are signs of oncomine
activity in the steel business. more lib
eral orders having been placed during
the past two weeks; and now that the
railroads are securing funds it is prac
tically certain that they will soon be
come larger buyers of needed mate
rails. The season is also approach
ing when constructive work will be
gin in our large cities, and this also
will be an important factor in stimu
lating demand The textile trades are
showing more activity, and as distrib
utors' shelves are bare of stocks the
Many cotton and WOODEN mills are still
running on short time, but the pros
poets are that they will soon be OBJ
liged to at least partially resume. One
of the very best features in the out
look is the continued expansion in ex