Bisbee daily review., 1911-08-31

-NeH tolh.-otEllmenL m Wall street has been again discouraged by unfavorable developments. Chief of these have been an unnhstakable pol- icy of retrenchment among the rail. 'rHads and multiplying evidence Of slaekness in general business. In ad, dition uc such influences there has been weakness in the foreign mar kets attributable partly to nery ousnss over theMoroccan situation and pars- " to selling of American securities in the foreign markets. All classes or business men at home are more or less discouraged by political uncer- tainties. the premature opening of the presidential campaign. the hOstil- ity to corporations and the practical certainty that the country must face continuous tariff agitation. The dis covery that liquidation has been quiet ly going on in Wall street and thu. insiders parted with considerable amounts Of stock some time aeo has further tended to weaken confidence. In all probability the latter fact was the basis of operations of a prominent hear clique which has met with con siderable success during the past few weeks.
 Labor Situation Factor.
 The general investment situation has been unfavorably influenced by the fact that banks, both here and at other financial centers, have been scrutinizing collateral more carefully and lesseninc their holdings of bonds and other securities, purchased at time when they had no other use for their funds. With the approach of the autumn trade and crop requirements. banking institutions find it desirable to have their assets in liquid form. The labor situation has, however, been the principal cause Of anxiety among railroad managers, particularly at the west. Evidences of unrest have been disclosed and rlnnors were frequent of further contemplated demands for in- creased wages, which the railroads are absolutely unable to concede. Net earnings of all roads reported in June showed a decrease of nearly pel cent, and the losses since then are probably still greater. Since the com panies were not allowed 10 rec0up their increased expenses arising from higher wages by an advance in rates. It is easy to appreciate the concern Of managers at the possibility of any further demands. American railroad labor has already been generously treated at a most inconvenient time, and further demands at this season would be considered unreasonable and receive general public condemnation. Retrenchment by the railroads is be- coming imperative. and as they are the largest purchasers of steel and other raw. materials their new policy is of much importance in the world of trade and industry. Business men. look forward to a quiet if not slack fall trade. Eastern roads dependent upon industrial conditions are likely to feel business reaction more keenly than western or southern lines which rely chiefly upon crops.
 UnfavorabIe Elements.
 These are the unfavorable elements in the situation. They have unques- tionably beer largely, though not full ly. discounted by declines of 10 to % points in the stock market. The ad- verse influences should, however. be partially enumerated by influences of a favorable nature. which the pre- vailing pessimistic temper is apt to ignore. We are facing no crop dis aster. On the contrary, average crops of wheat and corn are practically cer tain, and a large yield Of cotton is the present promise Easy money is expected during the remainder of the year. Congress has adjourned for which thanks should be devoutly given. The country will now have a temporary rest from legislative med ding and inquisitorial investigations Our foreign trade is in excellent con dition. showing large export balances. and the prospects are for continued large shipments of both raw materials and manufactured articles In this di- rection lies a corrective force of no small importance. It is working slow ly and quietly, but surely, in the di- rection Of fundamental improvement As security values declined large in- terests have been accommodating stocks. and the extent of the fall, it should be remembered, makes opera. tions on the short side less profitable and more dangerous than before. There is already short interest in the market of some importance. which is a basis of strength and will tend to stimulate occasional rallies. While the general situation is one that de. mands close watching. there is nc real unsoundness, and the autumn promises 10 be a period of fair activ- fly and considerable fluctuations ia stocks, afaording a good trading mar ket.
 Where Is The Gold?
 The continued heavy production of gold the world over raises the ques- ton as to what has become of the enormous increase in supply which has taken place in the last few years. The total amount of gold held in the great banks of Europe last week was placed at e501, 100000. compared with ( 1000, 900 a year ago This is an increase Of only es,0O0. GOO which, considering the large addition to the worlds supply, shows that the latter must be absorbed in some other direction Japan not long ago went upon the gold basis and Mexico has also become somewhat larger user Of gold for commercial purposes. The increased activity of the worlds com