The Marion daily mirror. (Marion, Ohio) 1892-1912, 1911-01-03

increases I'm expenses arise chiefly
from concessions made to labor; con
cessions which could be ill-afforded
and which managers are now trying
to pass on to shippers by securing
permission from the Interstate com
mission to make some advances in
rates. Doubtless reasonable advances
Will be allowed, but the railroad out
look would be an uncomfortable one
were there to be any important
shrinkage in traffic.
The tremendous amount Of new
capital issues. which has been going
on for several years, is significant and
unquestionably has much to do with
the present state of inertia in the
financial world. The bulk of these
applications were on account of the
railroads which have been obliged to
spend enormous sums to meet the
demands of growing traffic and whose
calls upon the money market are
likely to continue for some time to
come. II is this excessive call for
new capital which has had much to
do with present reaction. So heavy
an increase in the offerings of new
securities, coupled with the diminu-
ton of savings through universal ex-
travagance in business and in the
home, largely explain the exhaustion
of investors and the over-expansion
OF credit.
Statistics do not as yet show the
full extent of business retrenchment
year hence, when we may be on the
nigh road to recovery, the picture
will be more plainly seen. Difficulties
of the iron trade have beyond ques-
ton bee aggravated by the unwil-
ingness of those in control to meet
the situation through cutting prices
sufficiently to invite orders. The
policy of our steel managers has been
to maintain prices by restricting out
put; fallacious theory, which, adopt
ed alike by organized capital and or
ganized labor is interfering with nat
ural recuperation and confusing an
already unsatisfactory position. Some
Improvement will probably be OBJ
served in iron when the railroads
again come into the market, as seems
probable at no distant date. Anoth-
er important industry which is also
passing through a period of stress is
have been more or less embarrassed
by high priced cotton and high costs
Of production which are tending to
restrict consumption. While our own
mills are seeking for concerted cur
tailment, North and South, British
cotton mills are actively employed
supplying the markets of the world
from which we are excluded by our
present high costs. Our wooden mills
are also feeling the effects of high
prices and consequent depression, to
which is added a state of nervous
anxiety regarding coming changes in
the tariff. In other branches of in
dustry there Is also lessened activity
and manufacturers are resisting the
downward tendency as far as within
their power.
Real estate, usually the last to
witness the effects of a boom, is much
less active, not merely in New York
but in all parts of the country. In
this city the reaction is manifested
in the growing number of unoccu
pied apartments and lofts, also in the
stagnation in high-priced property
and acreage deals. One OF the larg-
est mortgage concerns in this city re-
ported a falling off in its own busi-
ness from SIS, 200, 900 in 1909 to $780,
100000 in 1910. In the interior,
especially at the West, there has been
great imitation of land values based
on recent large farming profits. AS
the latter shrink the effect upon land
values must work itself out, a con-
tingency emphasized by the changed
attitude of Western bankers to all
real estate operations.
A few words only are necessary on
the financial situation; this topic be-
ing covered in our regular weekly ad-
vices. Wall Street seems, as Is it's
custom. to have largely discounted
this business reaction. There has
certainly been a greater fall in secur-
ties than in commodities, and be-
cause of this adjustment the stock
market Is in a sounder position than
a year ago A decided improvement
has taken place in both the political
and monetary outlooks The last
election proved that the American
people, though bent on reform, want
a period of relief from unnecessary
agitation. Our government has taken
the hint, and there Is already less
anxiety shown to "hit the corpora
ti6ns" for mere political effect. though
no abatement Is shown in the inten-
ton of enforcing obedience to the
law. The railroads will probably re-
ceive fair treatment from the Inter-
state Commerce commission; and the
fear of radical action by the supreme
court in the oil and tobacco cases is
entirely unwarranted. These proper
ties vii! not be destroyed, although
they may be compelled to reorgan-
ize, and on all sides there Is grow
ing belief in just dealing with the
problems that concern our corporate
and social organizations. There is
nothing in this direction which
should now cause serious anxiety
Confidence has been greatly augment
ed by the appointment of Justice
White to the supreme court Justice
ship.
AS to the monetary outlook, dull
trading, declining prices and dimin-
ished speculation all make for easy
rates. In all probability money will
become a glut at this center, unless
business unexpectedly improves. I'm
fortunately we have a redundant cur
rency, incapable of adjusting itself
tn Iaagann1 raouirpIDants and