Arizona republican., 1912-05-16
Special CorrespondenceD

| l I41. was not low in view of the fact
 that investors are insisting upon and ! obtaining better returns. The success
 was ail the more remarkable because
 of the recent flood of new issues since
 January l, aggregating $1,026,000, GOO, | compared with $S36,00 900 year ago 1 Evidently there is no lack of capital l seeking employment when the require
 ment of safety and profit are met Very | shortly another new important bond l issue will be made; that of $26,000, ,00O l New York state per cents.
 This ready demand for the better 1 class of investments is encouraging. 1 It shows that in the estimation of l shrewd buyers fundamental financial 1 conditions are sound Of course there
 IS limit to buying capacity, and it is l not to be supposed that all of the new 1 issues of the current year have been l completely assimilated There is dang | CT also of an oVersupply of new issues, and this should be kept in mind as d stock market factor The insistence of investors upon high returns is another element of Weakness, especially for gtit-edge securities which are now pay ing relatively small returns.
 In the speculative situation there
 was sharp change. During the first half of the week the weakest section of the market was in Steel securities:
 the fact that the last quarterly divi- dend of the Steel corporation was to be entirely paid out of surplus creating a
 bad impression. The recovery, how
 eyer, was prompt for the steel industry
 is very active anu the various produc-
 CTS are turning out an enormous out
 put. To put the steel industry upon really healthy and satisfactory basis
 will require some advance in the prices of steel products Whether buyers can
 be induced to meet such demands is a question which must now be tested
 Thus far buyers have had the upper hand and refused to meet such de mands.
 The stock market was temporarily unsettled by strenuous political agita- tion. The presidential campaign is growing in intensity. and confidence is not likely to be fully restored until the outcome of the June conventions can be foreCasted. While the government crop renort was somewhat better than expected. there is nothing in it on which to base any enthusiasm. It in dicates at best winter wheat crop of 60.000,0 900 bushels below last year This will be offset by larger crops of corn oats, etc. taking the place of aban- doneI wheat acreage. But, as has al- ready been noted in these advices, the country is in particular need of large crops in order to alleviate the present h hirrD nF li,-i1, 1r-1i Sc of much of the present social and political discontent. It is by no means too late for improvement: but the season in some parts of the country is from three to four weeks late. and this is rather q serious matter since it increases the danger of frosts later on. One good feature is the wet spring insures a good hay crop, and the outlook for oats is excellent. so feed stuffs should be cheaper. For the next three or four months the course of the market will be more influenced by crop conditions than any other single factor Political conditions have already been largely discounted, and any change in this re spect is quite as likely to be the bet ter as the worse. Fluctuations in the political barometer must be expected until election day. In the labor situa- tion there is no change for the better. Important disputes are still pending, and if further concessions are made to labor it means continued high prices and further enhancement in the cost of living: not to speak of diminished prof. it's and a consequent impairment of national savings, the chief source of new capital. For the time being 1t is reasonable to expect an unsettled and somewhat feverish market. The de cline of the last few days may induce a temporary rally in quotations. Con dition5, however. do not justify any settled movement in either direction, but sharp fluctuations must be antici pated in response to day by-day devel- Opments.
 Another good feature is the easier monetary conditions abroad as sub stantiated by d reduction in the Bank of England rate British trade is eX- ceedingly active. particularly the cot ton industry, which is surpassing all records. The financial and commercial situation in Germany is also good; ali of which tends to stimulate our own foreign trade. Monetary conditions in the United tates are entirely satfsfac- tory. and this is an important element in stock market support
 The disturbance to business arising from the presidential election once more emphasizes the desirability of making the term of office six years in stead of four. The present campaign began a year ago and has been unus- uallv bitter and full of personal recrim- ination. It promises tO be even more exciting before the end is known Why should the legitimate activities of 94,- 000,000 of people be arrested ottener than necessary? It is quite true that the country will consume as much food and wear as many clothes, and require as much shelter as at any other time Nevertheless, the material prosperity of the nation is inev itaOiy checked simply because enterprise is deadened by fear. New projects are deferred risks are avoided and the total business consequently diminished. Labor, quite as much as capital, is injured by this harmful excitement, for the main springs of industry cannot be impaired without affecting the whole social fab ric In Great Britain national cleo tions are only held when required by political eXigencies. No regular time