Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-08-26

ana can only be aVerteQ by Shippers /
promptly cooperating with the rail- |
reads in avoiding such conditions. One 1
o. the most beneficial effects of big /
harvest would be it's tendency to re-
duce the cost OF living. Food, the /
principal item in the cost of living to I
the masses, will certainly be cheaper |
al 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 distribu-
tor.
The activity of the iron trade con-
tinues phenomenal. Prices have risen
IS to IS per ton from the lowest
point. Many plants are running TO the
full limit of their capacity and COM
plants are increasing of tardy deliv-
cries. The demand for steel products,
OF course, comes chiefly from the rail-
roads, which are compelled to renew
both equipment and rails upon an ex-
tensive scale The possibility that
steel prices will advance still further
is also forcing out many orders which
have been deferred as long as posi-
, BILE. 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 increase in the con-
struction of large buildings in our
| principal cities, which, of course, con-
sumes heavy quantities OF iron. This
/ is proving the second element of i'm
/ &c rtance in the iron industry. The
/ iron trade has always been considered
one of our best barometers and its &C
/ tivity in this instance can be directly
attributed to increased traffic and
housing requirements following the
growth Of wonderfully active popula-
ton.
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 busi-
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. Willie 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 practically
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 II no
adequate increase in the volume OF
traffic is forthcoming. il is difficult 10
see how they can make any further
concessions 20 labor. unless permitted
to correspondingly advance their rates,
I his 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 b!
, the payment of German loans, but
Canadian banks have large sums or
s. deposit here which will probably be
> shortly drawn upon for movement o.
a the Canadian crops Germany may at
a tempt to borrow here again, so The
p outlook is distinctly for firmer rates
q during the autumn.
!. Our merchandise exports in Jul!
g amounted to s147.200,0O0. or s19,100,
T., 600 more than a year ago. Our i'm
a ports during the same period reached
r $14S, 500 coo, or S50,500,0O0 in excess
o Of last year. This latter increas'
s caused an excess Of imports for TIL
n month Of 81. 1872 900. compared with al
r. excess of exports a year ago of 5000
, 600 So sudden q reversal of our fOI
y Cign trade situation is very unusual
; II will he noted that our exports wer
S Very heavy in spite of the declinin
a tendency in breadstuff shipments. Tn
" striking feature and the only reaso
n fo- this remarkable change in on
n. trade balance was the tremendous il
y crease OF over $30,OOO.OOO in import:
e due chiefly TO heavy arrivals of Tui
d Der. coffee, sugar, copper, tin, hide:
y etc In other words, high prices ar
al having their ultimate effect in draw
?: ing larger supplies from abroad.
X. continued this tendency will have a
IN unfavorable effect upon our foreig
AZ exchanges and might check the d,
n. mand for our investments; but
le should be remembered that the seaso
~ is near when we ship cotton in larg
.g Quantities and the probabilities ar
that We will have more grain to spar
10 for export than a year ago; ocea
Il. fIeights having already risen yer
K. sharply in anticipation Of big on
g ward movement this fall.
rs While the stock market has not r
sponded as promptly as expected ;
: the more sanguine TO the influence {
big crops. Il has nevertheless shown
persistent hardening tendency. Price