The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-08-26

ust is generally month of deteriora-
ton in cotton, it would be well to
mold extreme optimism somewhat in
reserve. 1t is already an old story
that We have secured big crops of hay,
oats, fruit, etc. Nothing short of dis
astrous weather, therefore, can now
prevent a year of ecord-breaking
prosperity for the American farmer.
This means powerful stimulus to
many lines of industry. The corn
crop by itself Is of incalculable value,
because of the many directions in
which it is utilized as food or for
manufacturing purposes. Cotton, too,
is one of the vital elements in our
national prosperity; being one of our
mainstays in the export trade, as we'll
as a ruling factor in our textile indus
tries. These two great crops will not
only vitalize many industrial pursuits
but will also enable our farmers to be
liberal buyers of both luxuries and
necessities during the coming winter.
Local merchants throughout the
Northwest are confident of good bust
ness this autumn. The leading bank
ers in that section are also exceeding
ly optimistic. Railroad managers
throughout the Northwest are strain
ing every effort to avoid a congestion
of traffic when the crops be"in to
move. Reports of an impending car
famine are coming from all directions,
and can only be averted by shippers
promptly cooperating with the rail-
roads in avoiding such conditions.
One of the most beneficial effects of
big harvest would be it's tendency
to reduce the cost of living. Food,
the principal item in the cost of liv-
ing to the masses, will certainly be
cheaper at first hands; and if there
is not a substantial decline. in the
prices of breadstuffs and meats next
winter it will not be the fault of the
American farmer. The blame, if any,
will be more likely to fall upon the
distributor.
The activity of the iron trade con-
tinues phenomenal. Prices have ris-
en- IS to So per ton from the lowest
point. Many plants are running to
the full limit of their capacity, and
complaints are increasing of tardy de-
liveries. The demand for steel pro-
ducts, of course, comes chiefly from
the railroads, which are compelled to
renew both equipment and rails upon
an extensive scale. The possibility
that steel prices will advance still
further is also forcing out many Or
ders which have been deferred as
long as possible. Orders for rails
thus far in August have reached over
100000 tons and are quite likely to
exceed 100000 tons before the month
closes. There is also a notable in
crease in the construction of large
buildings in our principal cities,
which, of course, consumes heavy
quantities of iron. This is proving
| the second element of Importance in
the iron industry. The iron trade has
always been considered one of our
this instance can be directly attribut.
ed to increased traffic and housing
| requirements following the growth of
wonderfully active population.
| With the two greatest industries in
| the country-farming and steel-in
such sound and active condition, how
| long will it be possible to defer bust.
ness activity? At present business
is prosperous here and there because
of the liberal profits arising from ad,
vancing prices, but what about the
volume of business? That is not in.
creasing satisfactorily. While Europe
| has been enjoying an enormous trade
expansion during the last two years,
quite as great in quantity as in value
the United States has been practical.
| ly marking time as to volume 1t is
sometimes misleading to measure
| progress in values; and just now we
are particularly in need of expansion
in the volume of trade. This should
certainly come. The railroads need a
larger tonnage quite as much as bet.
| ter rates: and such an outcome would
be a more satisfactory solution OF
! their present dilemma than any ad.
vance in freight rates by the Inter,
state Commerce Commission, which
would only be passed on to the ulti
mate consumer and serve to increase
the cost of living. Nevertheless, the
railroads cannot be starved; and, il
no adequate increase in the volume
of traffic is forthcoming, it is diff
cult to see how they can make any
/ further concessions to labor, unless
permitted to correspondingly advance
their rates. This is the one serious
offset to the good effects of big crops
so far as the railroads are concerned
The money market shows a harden
ing tendency. Bank reserves are low
er than for the last two years. West
ern demands are growing, and are
sure to be heavy because of the big
crop and trade movement now in
promise. The banks have been some
relieved by the payment of German
loans, but Canadian banks have large
sums on deposit here which will pro
badly be shortly drawn upon fol
movement of the Canadian crops
Germany may attempt to borrow here
again, so the outlook is distinctl,
for firmer rates during the autumn.
Our merchandise exports in Jul,
amounted to s147 100000, or $4,000,