The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-04-29
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

Beyond dispute the stock market is
| in strong control. This is demonstrate
| ed by resistance to unfavorable con-
ditions and the concerted manner in
which certain stocks are taken one by
one and advanced. Quite number of
| specialties have been made more act
| i've at higher figures. Such move
ments have several motives behind
them. Stocks fell into strong hands
| during the decline of 1911, and hold
ers are naturally DESTROYS Of distribut-
| ing portion of their surplus upon as
profitable a basis as possible. Condi-
lions have certainly shown much i'm
provement during the last few months,
and thoroughly justify the recovery al
ready witnessed. The coalers were
strengthened by settlement of the
strike problem; and the Vanderbilt
group advanced on the rumored merg-
er plan and a return to the former 6
per cent dividend basis. Big banking
interests are also in favor of an act
| i've and stronger market. 1t is their
particular function to raise new cap
ital and market new issues. Their in
terests require activity and strength.
Of new securities there have been ex-
ceptionally liberal offerings of late to
meet the imperative requirements of
railroads and other industrial con-
Germs. Needless to say these cannot
be disposed of successfully when the
market is depressed. 1t is, therefore,
good policy and good business for fl
nancial interests to encourage an up-
ward movement at this time. SO far
as public sentiment goes, we have had
a long period of pessimism and de-
| preston. A reaction in feeling was
bound to come. 1t first required lead
ership for development. Already it
has made good start and may make
still further progress. Politics, though
still an unsettling feature, are less of
a factor than two or three months ago.
The labor situation is disturbing, but
indications favor settlements upon
compromise basis. Merchandise mar
kets are fairly active, the consuming
power of the masses having met with
no material check, and industrial
plants are generally well occupied in
trying to fill empty shelves. The most
encouraging feature in the industrial
situation is the extraordinary activity
in steel. Our steel plants are now be-
ing strained to the utmost to meet act
ual demands, and this in spite of the
great increase of capacity during the
last three or four years. Prices are
| low, so that profits are not what they
would have been during the last boom,
but values show rising tendency and
there is still heavy volume of orders
in prospect which will keep the indus
try fully occupied for months to come
Railroads are of course heavy buyers,
and recent security issues are the best
assurance of continued large buying
from this quarter. There are no indi-
cations thus far of the investment
market being oversupplied with new
issues, heavy as these have been. The
new. capital thus acquired will prove a
powerful stimulant to many lines of
mand for labor
| All indications point to more act
i've business season. Values, it is
true, particularly of merchandise. are
high, and this is one of the drawbacks
of the situation: but the country. and
In fact the whole world, is adjusting
itself somewhat painfully to the new
high level of prices. The most vital
feature of the situation is the crop out
look. The damage to winter wheat
was an unwelcome, but not serious oc-
currence There is ample time to re-
plant with other crops, and grain that
was only partially injured has a good
chance for recovery. OF course, a 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
outlook in this respect is ENCOURAGING
for 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
early to form any positive opinions
about crops. The planting of cotton
has been much delayed, so that it is
premature to believe that there will
be any important decrease in acre
age. 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 in acre
age. Every grower would like to see
cut of 10 to 20 per cent, but as usual
each one will expect his neighbor to
curtail so that he may plant little
more. After all has been said, tenn
perature and rainfall are more i'm