Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-04-10
CLEWS' WEEKLY
FINANCIAL REVIEW

FINANCIAL REVIEW
The stock market has shown stub.
born and significant resistance to un-
favorable news. Within the past few
weeks series of shocks occurred
which exerted little or no effect upon
values. First in Importance came the
Interstate Commerce decision refusing
permission for an advance in railroad
rates; then followed delay in oil and
tobacco cases; an extra session of con-
gress; continued tariff and reciprOci.
ty agitation; the Mexican difficulties;
the decline in New York Central divi-
dends, and the two decisions handed
down on Monday on the Limited Pric-
es and the Commodities Clause, both
of which were construed as unfavor-
able to capital, inasmuch as they sup
port the restraints upon mOnopOlistic
tendencies.
That in spite of such a series of
disparagements the market should
maintain it's present firm undertOne is
unmistakab.e evidence of a radical
change in financial sentiment. AS
we have already stated Wall Street
is now getting to be about the most
cheerful spot in the country, and this
in spite of excessive dullness there
and a general slackening in trade cir
Giles. The reason, of course, is that
our leading ..nanciers recognize that
liquidation has been thorough and that
unfavorable influences have been amp
ly discounted. 1t is quite possible that
n ~ovnoin onA fhof
the housekeeping process is not alb
solutely finished, but the worst con-
corning such cases is thoroughly un.
derstood and causes no uneasiness.
The main factor in the present sit
uatlon is the exceptional outlook for
money. Now that April l is passed
funds will return to New York and dur
ing the summer months at least we
are practically sure of plethoric sup
ply of money. The very slackness in
business will contribute to this result.
for banks in all parts of the country
will send their surplus to New York
to seek employment in the best call
loan market which the country affords.
Nor is this all: The favorable change
in our foreign trade resulting in larger
excess of merchandise exports, coupl-
ed with large foreign absorption of
our securities, means large influx
of gold later on. The money markets
of the world are all we'll supplied and
easy rates prevail likewise in London,
Paris and Berlin. Unquestionably the
world is feeling the effect of contin
ued large gold production which tends
to depreciate its purchasing power
and thereby cause corresponding in
flation in values. In New York the
surplus reserve is larger than at any
corresponding date since 1908. From
now on the reserves should tend to
show rising tendency. In loans
there has already been considerable
expansion, amounting to about $780,
100000 during the last ten years.
Business is still going through the
process of readjustment which ended
some time ago in securities. Trade
generally is quiet particularly in the
northwest. Prices of commodities
contiue to decline and breadstuffs now
show drop of Is per cent in values,
compared with the highest prices last
year, Wullc pTOVlSlOuS 0Ic III Hduy Cog
es forty per cent lower than a year
age. There is no lack of wheat and
corn, and the scarcity of wheat Is
less apparent than year ago. This
is largely the result of public economy
the agitation against the high cost of
living having had decided effect In
this direction. The spirit Of economy
is spreading. The textile interests are
feeling the same influence. CoIisum-
ers wearing old clothes longer. and
buying less of the new. AS q result
the cotton and wooden goods situation
is extremely unsatisfactory, making it
exceedingly difficult to artificially sus-
tain the price of cotton. Tariff agi-
tation is added source of complaint.
In the Northwest reckless land specu-
lation has been checked and liquida-
ton also already begun. The end Of
this movement, however, has not yet
been seen, and it need cause no sur
prise If some of the weaker financial
institutions in that locality will have
to go through further process of
housekeeping. Another indication CT
p - -