The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-07-31
Henry Clews and Business

NEW YORK, July 81, 1912. -Imme-
diate conditions are favorable to the
stock market. The crops continue, to
make satisfactory progress, The ac-
tivity In iron is still exceptional, and
the general prospects for fall and win
ter trade are highly encouraging. In
spite of these stimulating facts the
stock market has been inert; partly
because We are in the height of the
vacation season, partly because of an
entire lack of leadership and partly
because there still remains a series
of uncertainties which may interfere
with a complete restoration of conf
dence. Chief of these is the political
outlook. Rightly or wrongly, there is
continued hesitation pending the re-
suits of the present campaign, which
cannot be definitely foreseen at the
present time. 1t would be a mistake
to assume that the hostility to capital
has disappeared. Though less acute
than formerly, it still remains active
and continually shows itself In at
tempted legislative attacks. There is
no certainty that these attacks wiil
not be renewed In the next Congress.
Capital continues on the defensive
againt the demands for higher wages
by labor on the one hand. and against
the demands for restrictive legislation
on the other by the people at large.
The certainty of renewed tariff agita-
ton next winter, regardless of which
party wins. unsettles many manufac-
turers and merchants alike. The per-
sistent high cost of living is also a
factor which seriously complicates the
political situation and should not be
overlooked. Prices OF nearly all COM
modities are high and continue to
show rising tendency. This stimu-
lates social and political disquiet.
Some theorists hold that the large in
crease in gold production is respon-
sible. This influence, however, is
much exaggerated. A far more impor-
tant element is the arrangement be-
tween supply and demand OF commo-
dities. In nearly ali parts of the
world the demand for various products
has increased faster than supply. Mod
ern methods Of business have enabled
producers to combine and control pro-
duction and prices more effectuaIly
than ever before. Trades unions have
enabled labor to do likewise, and shor-
ter hours and higher wages have ma
terially added to high prices and the
increased cost Of living. The constant
drift of population from the farm to
the city the world over has also been
an important factor. The changes
thus going on in our economic struc-
ture are far reaching and their out
come cannot vet be estimated. This
alone causes a feeling of hesitancy on
the part of financial and industrial
leaders who are always considerably
influenced by long distance views.
The monetary situation is not en-
entirely favorable to the stock mar
ket. A steady hardening of rates is
reasonably probable owing to increas-
ed crop and trade demands, especial
ly as prices are high. Already there
IS an increased supply Of commercial
paper, which means more activity in
business. The money situation abroad
requires watching Berlin has just
passed through crisis resulting from
OVERRIDING, and London is now begin
ming to feel the effects of congested
security issues. The advance in for
eign exchange in New York suggest.
the probability of gold exports at nj