Arizona republican., 1912-05-05

III "Ilch certaln stocks are taken one by one and advanced. Quite a number of SpecialtieS have been made more active at higher figures. Such movements have several motives bc- hind them. Stocks fell into strong i hands during the decline of 1911 and i holders are naturally desirous of dis ! tributing a portion of their surplus i upon as profitable q basis as possible. | Conditions have certainly shown much l improvement during the last few
 months, and thoroughly justify the recovery already witnessed. The coalers were strengthened by settle ment of the strike problem; and the Vanderbilt group advanced on the rumored merger plan and a return
 to the former per cent dividend ! basis. Big banking interests are also : in favor of an active and stronger market. It is their particular func- l ton to raise new capital and market i new issues Their interests require activity and Strengtht. Of new se-
 CuritieS there have been exceptionally liberal offerings of late to meet the imperative requirements of railroads
 and other industrial concerns Need- less to say these cannot be disposed of successfully when the market is depressed. It is, therefore good pol
 icy and good business for financial
 interests to encourage an upward movement at this time. So far as l public sentiment goes, We have had long period of pessimism and de- ! pression. A reaction in feeling was bound to come. At first required leadership for development Already l it has made a good start and may make still further rogress Politics though still an unsettlng feature
 are less of a factor than two or three months ago. The labor situa- tion is disturbing but indications fla vor settlements upon a compromise basis. Merchandise markets are fair ly active. the consuming power of the masses having met with no ma tcrial check, and industrial plants are generally we'll occupied in trying to fill empty shelves. The most en- couraging feature in the industrial situation is the extraordinary activ- ity in steel Our steel plants are now being strained to the utmost to meet actual demands. and this in spite of the great increase of capac- llS uuiillS NIIt. idoI (IlItt or IOuT years. Prices are low. so that pro- fits are not what they would have been during the last boom, but values show rising tendency and there is still q heavy volume of orders in prospect which will keep the industry fully occupied for months to come Railroads are of course heavy buy CTS, and recent security issues are T I.,- buying from this quarter There are no indications thus far of the invest ment market being oversupplied with new issues, heavy as these have been. The new capital thus acquired will prove a powerful stimuant to many lines of industry and add ma terially to the demand for labor.
 All indications point to a more ac- tive business season. Values, it is true. particularly of merchandise, are high, and this is one of the draw
 backs of the situation; but the coun- try. and in fact the whole world, is adjusting itself somewhat pain fully to the new high level prices. The most vital feature of the situa- ton is the crop outlook. The damage to winter wheat was an unwelcOme
 
 ample time to replant with other crops, and grain that was only part tally injured has a good chance for recovery. Of course. q big wheat crop would be highly beneficial the world over as an important aid to lowering the cost of food. This country, however, is more interested in corn than in any other crop The c for q larger acreage. and soil cOndi- tions, it is worth remembering, are in many respects ideal The season. however, is late, and it is altogether too carly to form any positive Opin- ions about crops The planting ot cotton has been much delayed, so that it is premature to believe that there will be any important decrease in acreage. Considering that cotton yielded handsome profits to the south last year in spite of lower prices, It
 is hardly to be supposed that there will be any important shrinkage Tn acreage Every grower would like to see a cut of 10 to 2O per cent, but as usual each one will expect his neighbor to curtall so that ne may plant little more. After all has been said, temperature anu Idlh~ fall are more important elements in the final yield than any ordinary fluctuations in acreage.
 Monetary conditions are generally favorable to the stock market, loan able rinds being abundant and cheap. Any decided increase in business ac- tivitv would. lessen the supply avail able for market purposes. Our bank reserves are low, but do not really represent our actual financial strength because our credits abroad have been greatly strengthened by favorable foreign trade balances, and there are still large sums of American money loaned in Europe which can be util- jzed when needed on this side.
 The coal strike has been practically settled without any serious disturD- ance There is reason to hope that the engineers strike will also yield to reason and sober thought. All things considered, there is basis for taking q cheerful view of the sit uation in the long run. The market has had very considerable rise, especially in some stocks, and in- craaSipp realizatiOnS are in order.