Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-07-30
CONDITIONS ARE
MORE FAVORABLE
Crops Continue 10 Make Salts.
factory Gains, Says
Henry CIews
Better Trade Prospects viii
Tend 10 Make Upward
Movement
to The Tribune.

Special to The Tribune.
NEW YORK July 30.--lmmediate
conditions are favorable to the stock
market. The crops continue to make
satisfactory progress. Tie activity
N iron Is still exceptional, and the
general prospects for fall and winter
trade are highly encouraging. In
spite of these stimulating facts the
stock market has been inert: partly
because we are in the height OF the
vacation season, partly because of an
entire lack of leadership and partly
because taere still remains a series
Of uncertainties which may interfere
with a complete restoration of con-
tidence. Chief of these is the political
outlook. Rightly or wrongly, there Is
continued hesitation pending the re-
suits OF the present campaign wlich
cannot be definitely foreseen at the
present time. 1t would be a mistake
to assume that the hostility to capital
has disappeared. Though less acute
than formerly 1t still remains active
and continually shows itself in at
tempted legislative attacks. There
Is no certainty that these attacks will
not be renewed in the next Congress.
Capital continues on the defensive
against the demands for higher wages
by labor on the one hand and against
the demands for restrictive legisla-
ton on the other by the people at
large. The certainty of renewed tariff
agitation next winter regardless of
which party wins unsettles many man.
ufacturers and merchants alike. The
persistent high cost of living is also a
factor which seriously complexities the
political situation and should not be
overlooked. Prices of nearly all com
modlties are high and continue to
show a rising tendency. This stimu-
lates social and political disquiet.
Some theorists hold mat the large
increase in gold production is respons.
ible. This influence, however, is much
exaggerated. A far more important
element is the arrangement between
supply and demand Of commodities.
In nearly all parts of the world the
demand for various products has in
creased faster than supply. Modern
methods of business have enabled
producers to combine and control pro.
duction and prices more effectually
than W before. Trades unions have
enabled labor to do likewise, and
shorter hours and higher wages have
materially added to nigh prices and
the increased cost of living. The con.
slant drift OF population from the farm
to the city the world over has also
been an important factor. The changes
thus going on in our economic struc-
ture are tar reaching and their out
come cannot yet be estimated. This
alone causes a feeling of hesitancy on
the part of financial and industrial
leaders who are always considerably
influenced by long distance views.
The monetary situation is not en-
tirely favorable to the stock market.
A steady hardening Of rates lis reas-
onably probable owing to increased
crop and trade demands, especially as
prices are high. Already there is an
increased supply of commercial paper,
which e more activity In bust
ness. The money situation abroad re.
watching. Berlin has lust pas.
sed through a crisis resulting from
and London is now begin.
ming to feel the effects of congested
security issues. The advance in for.
eign exchange lin New York suggests
the probability of gold exports at no
date; for London is quite like |
ly to take gold from New York to
meets it's obligations in South Amer.
lea.
Bearing upon the foreign situation, |
the continued decline in British con.
soils is significant. British 2k Con-
soils at 70 3.4 are about equal to 1914 |
3 per cent, so that it is some
what misleading to say that their price
Is lower than at any time since 1923.
The lowest price for 3 per cent was
1848. Many reasons are advanced
the extraordinary depreciation OF
This premier security. 1t must be at
to the high rates of interest,
which are depreciating all Govern
ment securities. Fear of war with
and the various humanitar-
and and socialistic proposals of Lloyd.
have seriously increased the
Dad OF the British taxpayer and
the national credit. The mad
ace between England and Germany
or naval supremacy must, if continu-
I'd, have a telling effect upon the Fl.
RANGES of both nations. In case of
var both countries would have to pay
probably as high as 5 per cent for
money, and the result of this would
,e disastrous upon British and Ger.
nan securities alike. Even if no war