Arizona republican., 1911-12-28
ISbrcidl C0rrcSbOHdCuccl l

NEW YORK. Dec. 2S.-Holiday quiet
 overshadowS the stock market This is
 the period for closing accounts. stock
 taking and other operations incidental
 to the close of the year. Aside from
 activities connected with the holiday
 trade, it is apt to he one of the dull
 lest periods of the year. In the stock
 market proper it is usually a time
 when every effort is made to antici-
 pate the effect of January disburse
 mrnts. This year there are estimated at over s22O.OO0.O0O The question ar
 ises will the usual proportion of this
 sum come into Wall Street for per
 manent investment There k some reason to expect that it will not. The
 main reason is the high cost of living
 for all classes. Whether this be due
 tG high prices. tO extravaganza or to higher standards of living matters lit
 tie. People are certainly saving less. and as all new capital must come from
 the nations savings it follows that there will be a smaller proportion ap-
 plicable for investment purposes than
 usual. Another element in the busi-
 ness situation is the high cost of liv-
 ing compels investors to seek and in
 sist upon the largest returns possible
 on investments. The same tendency towards better returns arises from an other ,lirection-namely. that a reduc-
 ton in the supply of new capital will
 oblige those who want it to pay high
 CT rates. In short. as a result of ex-
 isting conditions. capital is going to command better wages just as labor has already succeeded in doing. What
 the effect of this will be upon the fi-
 nancial situation remains to be seen.
 r iS well known that our large rail-
 road corporations have special needs for new capital next year. and to find
 buyers it is evident that they will eith- rr have to place them at comparative
 ly low prices or else pay somewhat
 better rates of interest In all prob
 ability the present year will be rec
 ord breaking one in the issue of new
 securities owing to the exceptionally
 heavy output during the first half of
 the year. During the last six months the issues have been held back because oc adverse conditions should the in- VeStment outlook become more fav- orable. 1t is quite likely that there will be a flood Of new offerings. The re- qrirements Of our railroad systems to 1 meet the pressing demand for better terminal facilities in our great cities are sure to be exceptionally heavy l Doubtless there is an abundance of capital awaiting investment, particu- ! larly if confidence becomes more firm l l,- established. but between the neces- ! sity of raising much new capital and
 the insisterce Of investors upon profit | able returns it is a problem whether | there is much chance for any prolonged | rise in values. Should the market be | pushed much higher it would materi- ! allv check this demand.
 General business is quiet Conditi- ! ons. however, appear sound. There is | rot so much complaint about the vol J ume of business as about profits In | the interior a rather more cheerful | tone prevails and bankers at the West : anticipate a moderate but not very i pronounced improvement It must be l remembered that last year was not a | season of big crops. On the contrary the total yield was slightly below the | average. There was one striking eX- | ceptiOn. The South produced a cot | ton crop far beyond exceptions and | much too large for current require ! ments Some authorities estimate the | yield at fully 2.0OO.OOO bales more than | can be possibly consumed. The result i ig ar abnormally low price for cot | ton. Of course, there will be a sharp | curtailment in acreage during the | coming spring. and the cotton left ov- l CT must be carried either by the grow | CT. manufacturer or speculator to make | good any possible deficiency next year. | The low price of cotton is naturally | serious disappointment to the South | The losses from this cause. however. l are evidently being exaggerated. and { according to the report of the depart ! ment of Agriculture will not aggregate much over s15O,0OO,OOO compared with | last year. That crop. hOwever. was record one in value. and this years crop in value will probably be much ]