The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-11-04
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

ton of calling a special session. That
would postpone reopening the tariff
question until December. 1913. Should
new bill be then introduced, expert
ence shows that three to six months
, may be required for discussion. Con-
sequently the probabilities are that no
actual change in the tariff can occur
for a period of about eighteen months.
| This should set at rest all appre-
tensions OF any disturbance on this
score during the approaching winter,
The local stock market has been
much upset by financial arrangements
abroad. The sudden precipitation OF
a large supply of stocks upon this
market naturally caused more or less
temporary strain, and only the in.
trinsic soundness OF general condi-
tons prevented a more serious de-
cline. a somewhat better feeling
lately developed on the foreign
/ bourses, which exerted a favorable
effect here. The monetary situation
at home and abroad, however. is one
OF continued strain. The rise in the
Paris bank rate and the frmness OF
discounts in London are very signi-
ficant and must still be regarded as
danger signals. Trade has been I'M
usually active with all the great com
mercial nations of Europe, and the
disturbance caused by the war will
temporarily check this activity. Lat
er on this will be resumed, the finan-
cial situation will readjust itself and
Europe will unquestionably again be
a good purchaser of American stocks.
which are in stronger and more
promising position than any other Sc
curities in which Europe invests. Our
own money market is firm and likely
to remain so for some time to came.
The November disbursements tempo
rarily added to the stringency, and
another period of firmness may be
anticipated toward the close of the
year. AS an indication of renewed &C
tivity and confidence in the United
States the large amount of new Sc
curity issues announced for October
is worth noting, the total being S203.-
00O,0 900, against $6S,000,000 at the
same time a year ago. The most
significant feature in our industrial
situation is the continued extraordi-
nary activity of iron and steel, the
production of which is breaking all
records. The railroads continue the
principal buyers, having placed heavy
orders for rails and equipment. This
demand is almost certain to continue
for some time to come, and many
plants already have enough orders on
hand which will keep them fully EN-.
ployed throughout 1913.
The late decline in stocks has not
been entirely welcome, yet may have
beneficial results. 1t has severely
tested our financial strength, elimi
mated weak spots and is preparing
the foundation for a fresh and more
substantial upward movement when
the appropriate time for initiating
such arrives. At the moment caution
and discretion are necessary in all
speculative operations. We must al
least wait until the cautionary signals
abroad are lowered. Strong as We
may be We cannot ignore the Euro
pean situat Il in these rows of grow
ing international sympathy and inter
dependence. 1t is we'll also to wait
and learn what surprises the cleo
! lions have in store for the country.
Henry Clews.