Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-02-05

in business operations Is the best cor
receive of that difficulty. A certain
degree OF concentration in banking
power exists at every financial center
in the world. 1t Is natural and iRevi'
table. and Is almost invariably used
for wise and prudent ends. The abuses
of such power are too rare to call for
serious attention, much less public
investigation. There S no such thing
rs a money trust" in the correct
sense of the word, for 1t Is Impossible
to create a monopoly in either credit
or money. The supply Of both Is too
great and flows too readily from one
point TO another to allow OF corner'ng'
If the terms which one lender offers
are TOO cxacting, there are always
rlenty of other lenders avilable, II
sought after. Great as Is the BANK
ing power of New York. it Is only a
fraction of that of the entire country
and its influence is commonly exag-
rerated. Comptroller Murray Is au'
thority for the statement that the
combined banking power of New York.
Chicago and St. Louis, three OF the
principal reserve cities. is only about
one.tifth OF that OF the entire United
States, II it were possible to create
a money trust" In this country. bor-
rowers would turn to Europe for aid
with promptness that would quickly
break any monopoly here.
The general outlook is not without
its redeeming features. Chief OF these
is the plentiful supply OF cheap
money although that. Of course, IS
largely the result of inactivity. Our
financial situation is exceptionally
sound. Speculation is at the mini
mum and liquidation has eliminated
many weak spots. This applies not
only 10 NuanCldl NAoHS' o"S w
ness in general. The long period or
conservatism which the country Is
passing through is after all building
sure foundation for a fresh forward
movement when present uncertain
ties have disappeared, as they ultl'
mately will. The surplus reserve OF
the banks at New York now stands
at about $45,00oO00. the highest
point for a number Of years at this
period. Our financial strength has been
further augmented BY the excellent
condition Of our foreign trade, the ex-
cess Of exports piling up our credit
balances upon the other side higher
and higher. This and the relatively
better rates for money in European
markets have enabled our banks to
extend their advances to Germany.
which matured in January, thus facili'
tating the placing OF the recent $la5'-
ooO, 900 German loan in Europe. 1t Is
estimated that American loans abroad
today run as high as $l5o,O00, 900, or
almost As great as at any time during
1911. Gold exports to Europe have
been anticipated for some time past,
and must be welcomed by local bank
ers because it will tend to make In
terest rates somewhat more profit
able. The most disturbing influences
on Wall Street have been the develop
ments concerning St. Paul. the Har'
riman lines and the steel corporation.
All of these great concerns are SUI
fering from diminished profits owing
to the awkward combination OF de-
creased revenues and increased ex-
penses. In the case Of steel a consid-
erably larger volume of business was
transacted in November and Deem
Der. but the reduction in prices Offset
these gains and accounted for the
heavy shrinkage in profits. The win
ter has been a severe one and traffic
has suffered more interruption than
usual, so it remains to be seen what
the effect will be Of these unfavor>
able conditions upon traffic earnings
generally. Apparently We are in an
era Of declining profits. and dividend
prospects will be a matter of keen
interest during the next few months.
There has been much better de-
mand for bonds recently. those show
ing good returns being promptly alb
sorbed. while short term notes are
also in good demand. Institutions and
wealthy buyers have been investing
more freely. and while January was
no, entirely satisfactory month. still
the sum total of transactions was very
satisfactory considering adverse in
fluences. Security issues in January
were the heaviest on record, amount
ing to over $40 90. 90. or about
snS. 100000 in excess Of = year ago.