The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-08-05

West is the tremendous output of
new. securities during the first six
months of the year. While the dis
more successful than might have been
expected, nevertheless the local mar
ket is somewhat congested by such ex-
cessive offerings of high-grade securi-
ties. In time, they will doubtless be
distributed, but August is not general
ly considered good investment
month. In July the output of new
securities was only about s34,000,000
as against S130,000,000 a year ago.
This is an unusually small output,
and proven the inability of the mar
ket to take any further new issues
at this time.
Wall Street is also somewhat con-
cerned about the future of the rail-
roads, arising from the persistent de-
mands of labor Should the engineers
obtain concessions in the recent ar
bitration case, it is expected CORES
ponding demands will follow from
other classes of railroad labor. The
railroads have already raised wages
very literally during the past two
years, and in consequence have suffer
ed severely in net earnings. Further
advances could be endured possibly
by few of the more prosperous COM
panies. For the weak railroads, how
ever, or those not enjoying an abun-
dance of traffic, any further advance
in wages would be a serious matter;
the theory of uniform wages in spite
of varying conditions on different
systems often working injuriously and
unjustly to those less favorably sit
uated.
In the steel trade business contin-
ues active. The last quarterly report
of the United States Steel Corpora
ton was fairly encouraging. Steel
prices are constantly advancing in all
directions, and the results of the next
quarter should show much more
liberal profit. Other lines of industry
have given evidence of prosperity;
notably the great electrical concerns.
The textile industries have been much
embarrassed by labor troubles, and
dividends have been temporarily i'm
paired. The outlook, however, is for
less disturbance in these quarters,
especially as fabrics are finding a
good market at better prices.
So far as politics are concerned, it
can safely be said that from now on
they will be a less and less disturb
ing factor. The politicians are learn
ing that arrangement of business is
apt to injure their own political for
tunes. The West has turned it's back
upon politics most emphatically, and
the East is not likely to be slow in
following this wholesome example.
For this reason, if for no other, it is
! likely that the tariff question, to
which business is nose sensitive, will
be handled cautiously. Whichever
party succeeds in the next election
no radical changes need be antici
pated, although some reductions will
| inevitably be made in excessive rates
i as a concession to public opinion.
AS in previous advices, we reiter
ate that the outlook is for better
and more active market. Delay has
been chiefly dut to lack of leadership
! to uncertainties regarding the crops
and to political agitation. The two
latter uncertainties are being gradual
ly eliminated. AS the vacations draw
to a close absentees will return invig
Grated and with optimistic views, the
results of which cannot but have a
favorable effect upon the security
markets.