Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-07
FACT AND Gossip
IN BUSINESS
WORLD
sv g. G. FORBES


NEW YORK. May conditions, IN
fortunately. have gone backward. The
facts. briefly are
Grain prices have advanced in conse-
quence Of foods and other unfavorable
Developments Cotton has become dis
tincty dearer
Trade Improvement has not fulfilled ex-
pectations, due partly to unreasonable
weather The failure of the steel corpo-
ration to earn its common stock dividend
has created bad impression.
Politics have upset all calculations and
are now breeding grave uncertainty In
financial circles
Labor troubles are still more or less
unsettlng
Yet until Friday the stock market per
sisted in ignoring unpleasant develop
ments. The sharp break may mean only
a desperate attack by professional bears.
Then again. il may prove portentious of
more SOLDERING speculative happenings
The head OF a leading international
banking house thus summed up the situa-
ton to me a day or two ago.
why should any one look for a stock
market boom Just now? Agriculture has
been disappointing. So has the business
revival that set in six weeks ago Poll
tics are al skies and sevens and will
cause US all to wait-at least we will not
venture TO bring forward very large
plans The investment demand at pres
ent Is quiet but one Of the best features
is that money has become quite easy
abroad, and is also plentiful here. By
and by we will be able 10 bring out a
considerable amount of new securities.
But for a while prudence suggests going
slowly"
That. to my mind contains much wis
dom
Of course, most Of the adverse happen
ings are likely to prove of only tempo
rary effect Crops can easily turn out
record breakers; industry may brighten
UP at any moment. especially if warmer
weather be enjoyed, the political ka
leidoscope may become more cheerful,
and investors tired Of leaving money
living at unremunerative rates in institu
tons, may enter the market and assim-
iate many millions of bonds, stocks and
the now popular short-term notes.
Labor negotiations will bear watching.
Rejection of Coal Agreement.
TIE rejection of the coal agreement
drawn up by Joint committees was
not encourag ing Certainly the opera tors
succeeded in reducing their concessions
to a minimum, and those workers who
victory did have ground for dissatisfac-
ton At the same time the immediate
decision Of the full committee not to
throw in their allegiance with their col
leagues was 4 serious step. Had the
owners refused to stand by the sub-com
mittee agreement, what then?
The significance Of the appointment OF
an arbitration commission Of seven mem
hers to adiudicate the Eastern locomo-
tive engineers dispute can not be exag-
gerated
Has a way at last heen found to avoid
hasty. i'll considered strikes? Are the in
terests Of the public finally 70 receive
some slight consideration?
May Mark End of Strikes.
Let the experiment have a happy out
come. and who can foreten the future
consequences? The day of strikes should
end even as the danger Of war between
nations should no longer hang as
sitting cloud over civilized world.
The fresh demands made upon the rail
roads. this time by fremen, have not
come as a surprise TO the managers. for
did they not 1t press upon the engine
drivers that the granting of their requests
would be the signal for an uprising
among other employees all along the
line
From the publics standpoint it Is well
that the entire railroad situation be in
vestigated by an unbiased body of capa-
bile citizens Genuine. widespread pros
peritv could not be enjoyed by the United
States were her railroads. her largest
snenders. he it remembered to be Grip
pied to the verge of bankruptcy SO I'M
nortant section of the economic body
could not he wounded without weaken
- ,,,1,ola cystarN
stock Market Setback.
Concerning stocks little can be said
with confidence Certain financiers of
note believe that setback is inevitable
They nave not bought at the high prices,
nor do they find their friends eager to
load m Commission houses declare the
public has not inundated them with
orders
The Inference is that Spectators pos
sessing both cash and courage have been
chiefly responsible for the spectacular adj
vances. Outside conditions were more in
their favor a month ago than they are
now
But six months hence-the period
which Wall Street tradltionally looks
fundamentals (such as crops
trade. money. politics. are more likely to
he an the side of the huh than the bear
Between nov and then squalls Of some
severity are probable