Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-01-01
Passing Of 1871 Relief
To Wall Street.
Year Of Decided UnseitIement
In Finance and Otherwise.
Business Failures Show 8 Per Cent.
Increase Over 1910.

New York, Dec. 31.-Relief rather
than regret is felt in Wall Street with
the passage of the year 1911. It has
been a year of decided unsettlement in
both finance and business. Activity in
almost every line had been repressed.
Trading on the Stock Exchange
dwindled. At no time however, wers
there threats of widespread disaster.
The condition was one of dull sus-
pense rather than of actual retrogres-
sion. Business was sound, but the
characteristic American vim was
lacking.
The feature of the year from the
Streets viewpoint was the crisis IN
the struggle for the reimbursement of
Big business to the requirements of
law. In the spring the United States
supreme court rendered its epoch
making decisions in the Standard Oil
and American Tobacco, enunciating
the Rule of Reason The latter part
of the year witnessed the unprece-
denied spectacle of the dismember-
ment of these huge corporations. The
movement was carried further by the
filing of the suit for the dissolution of
the United States Steel Corporation
and by proceedings against several
smaller combinations which the gov
eminent contended were operating in
restraint of trade.
In other directions there were evil
dences of the tendency toward more
rigid control of large business inter-
ests by the government.
Agitation of political questions hav-
ing tr ce with tho "a fl airs af
tions was continued. With Presi-
Dental compaign in the coming year.
there appeared to be little prospect
that the trust question would be al
lowed TO slip into the background
The effect of this movement was felt
perhaps most keenly in Wall Street.
Large new business ventures were post
poned until the promoters and bankers
were able to foresee with some degree of
certainty under what conditions business
was to be conducted The passing needs
of the country were sufficient to sustain
most lines of trade in most lines of bus
mess, but there was little initiative. In
some lines of business the productions
reached new high records, but in almost
every case it was at the expense OF
profits, because prices tended toward a
lower level Business failures increased
per cent. over 1910 In the closing
months of the year there were signs of
business revival, although they were
not sufficiently general to indicate how
far the Improvement would extend.
The years crop record showed some
thing of the same irregularity
A bright feature of the year was the
growth of foreign trade. Exports in
creased IL per cent. over the preceding
year, with especially heavy gains in steel
products. Imports fell off per cent.
making the balance of trade in this coun-
try's favor correspondingly larger.
The effect of these conditions upon
trading in securities was decided. The
volume of business on the Stock Ex-
change fell off 20 per cent. from that of
1910. During the fore part of the year
the market passed through a prolonged
period of intense dizziness which reflect
ed the general hesitation as to the out
look for finance and industry. In the
summer the market became very active
for time, and prices broke violently ow-
ing to the selling of United States Steel
In anticipation of the dissolution suit.
When the suit was actually filed there
was another sharp break, followed by a
gradual recovery of 10 to Is points. With
in the last few weeks stocks have held
fairly steady at this higher level with
gradually dwindling dealings
Money rates were abnormally easy The
year ended with call money at per cent
and with no sign of the customary year.
end furry. This condition was largely
due to the restriction of business and
the consequent lack of demand for funds.