Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-05-14
Shorter Presidential CampaiQD
Would Hell p to Steady
Conditions
Great Deal in q Commercial
Way Gould Be Gained by
Such a Change
By HENRY CLEWS.

$6o, UUO,OOO New " TX city BOND issue
must be regarded as positive sue
cess. The average price realized,
100747, was not low in view of the
fact that investors are insisting upon
and obtaining better returns. The
success was all the more remarkable
because of the recent flood of new is
sues since January 1, aggregating
$1,O26, 100000, compared with $780,
100000 year ago. Evidently there
is no lack of capital seeking employ
ment when the requirements of safety
and profit are met Very shortly an
other new important bond issue will
be made; that of SIG, 100000 New
York State per cents.
Ready Demand Encouraging
This ready demand for the better
class of investments is encouraging
1t shows that in the estimation of
shreWd buyers fundamental financial
conditions are sound OF course there
is a limit to buying capacity, and it
is not to be supposed that all of the
new issues of the current year have
been completely assimiated There
new issues, and this should be kept in
mind as stock market factor. The
insistence of investors upon high re-
turns is another element of weak
ness, especially for gilt-edge ecurities,
which are now paving relatively small
returns.
Steel Securities Weakened.
In the speculative situation there
was sharp change. During the first
half of the week the weakest section
of the maEket was in Steel securities;
the fact that the last quarterly divi-
dend Of the Steel Corporation was to
be entirely paid out Of surplus created
bad impression. The recovery, how
ever, was prompt, for the steel in.
dustry is very active and the various
producers are turning out an enor-
nous output. To put the steel indus
try upon really healthy and satisfac-
tory basis will require some advance
in the prices of steel products. Wheth-
err buyers can be induced to meet such
demands is question which must
now be tested. Thus far buyers have
mad the upper hand and refused to
meet such demands.
Politics UnsettIes Stock Market.
The stock market was temporarily
unsettled by strenuous political agita-
ton. The presidential campaign is
growing in intensity, and confidece is
OF likely to be fully restored until the
outcome of the June conventions can
be forecasted. While the government
crop report was somewhat better than
expected, there is nothing in it on
which to base any enthusiasm. 1t in
dicates at best winter wheat crop
OF 100000 900 bushels below last year.
This will be offset by larger crops of
corn, oats, ETC., taking the place of
abandoned wheat acreage. But as has
a'ready been noted in these advices,
the country is in particular need of
large crops in order to alleviate the
present high cost OF living, which is
back of much of the present social
and political discomfort 1t is by no
means too late for Improvement; but
the season in some parts of the coun-
try is from three to four weeks late,
and this is rather a serious mat
ter since it increaes the danger of
frosts later on. One good feature is
the wet spring insures a good hay
crop, and the outlook for oats is ex-
cellent, so feed stuffs should be
cheaper. For the next three or four
months the course of the market will
be more Influenced by crop condi-
tons than any other single factor Po-
ltical conditions have already been
largely discounted, and any change
in this respect is quite as likely to be
for the better as the worse. Fluctua-
tons in the political barometer must
be expected until election day. In the |
labor situation there is no change for
the better. Important disputes are
still pending, and If further conces-
sions are made to labor it means con-
tinued high prices and further en-
hancement in the cost of living; not |
to speak OF diminished profits and |
consequent impairment of national |
savings, the chief source of new cap
ital. For the time being it Is reason !
able to expect an unsettled and some |
what feverish market The decline |
VI Tue AdSL AO" uoyS may AAuuCO q
temporary rally in quotations. Con.
ditions, 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.
England Reduces Interest Rate.
Another good feature is the easier
conditions abroad as sub
stant:ated by reduction in the Bank
of England rate. British trade is ex-
ceedingly active, particularly the cot
ton industry, which is surprising all
records The financial and CONNER
cial situation in Germany is also good;
all of whicr tends to stimulate our
own foreign trade. Monetary condi-
tons in the United States are entirely
satisfactory, and this is an important
in stock market support.
Longer Presidential Term Would Help
The disturbance to business arising
from the presidential election once
more emphasizes the desirability Of