Arizona republican., 1912-05-10

der powerful control was further con firmed this week by an unusual re- sistance to depressing influences. In a few cases prices yielded to unfavOr- able news which precipitated more or less realizing, particularly towards the close of the week, but the general un dertone of the market remained strong and values showed a rallying tendency upon the least encouragement. The conditions for and against the market can be briefly summarized as below:
 For
 More hopeful business situation.
 Very satisfactory foreign trade.
 Record breaking steel production.
 Increasing railroad earnings.
 Larger bank clearings.
 Surplus in reserves.
 Early adjournment of congress.
 Against.
 Increased profit taking.
 Political uncertainties.
 Labor troubles.
 Heavy new security issues
 Late crop start.
 Tendency to await conventions.
 Between these two sets of conditions there is a wide range of choice. W9 have already had an advance of 10 to f5 points chiefly in the industria1s, which arc generally showing satisfac- tory returns. The railroad section of the market has not yet been able to make equally good exhibits, but traf- fife conditions arc improving, as shown by gross earnings for the second week of April, which reported an increase of over 10 per cent over the same time last year That general business is on larger scale is confirmed by bank clearings During the last week of April the returns at principal cities were Y per cent ahead of last year. Deducting any increase in sucn figures arising from higher prices and specu- lative activity, it is evident that the volume of trade is showing an encour- aging gain over a year ago Moreover, such improvement is we'll distributed; all sections of the country showing an increase in clearings over last year, particularly in the New England, Mid dIe and Middle Western states. The increase in the bank reserves which last week reported a surplus of $17,- 900. 900, against a slight deficit at the end of March. is also a source of sat isfaction. the gain being largely the result of a considerable contraction in loans
 A rather striking feature has beeN the heavy output of securities during April, amounting to over $260,000,000 Of this sum $16O,O00,0OO represented railroad issues and over $100,000,000 in dustrial corporations; bonds and notes also forming the larger portion of the requirements in each case. The Apri total was the largest on record fol that month. During the first foul months of the current year the tota issues have been over $1026, 000, 900 compared with $836, 100000 in 1911 ant $723. 900, 900 in 1910 Of course a DOT ton of these issues was intended fol refunding purposes. Nevertheless, It IS evident that the amount of new capi- tai issues has recently been exceedingly heavy. That they have been so readily absorbed in spite of so many unfav- Orable conditions is excellent evidence of sound financial conditions. Thus far there nave been no indications o oversuppIying the market and the dis tribution of these issues has undoubt- edly had much to do with the suppor accorded the market by strong banking interests. The investment of suci large amounts of new capital means ( decided stimulant to many industries particularly those of a constructive character Building materials and es- pecially steel will be required in grea quantities, and labor in such industrie: is sure to find ample employment. Al ready the steel industry is feeling th' stimulus just referred to, and the out put of finished steel products durint the first four months of the year i estimated at $S,000, ,000, ,000 tons, mor' than One-half of which went to single corporation. The railroads aEe of course, the principal buyers, but i is noted that many large orders are re- ceived for commercial building pur- poses.
 It is likely that more or less timidits will prevail in business circles until tho results of the June conventions are set. tied or foreseen. After that event there will also be a certain amount of un- settlement until the elections in No Vember. Political conditions, however have been partly discounted, though they will continue to be stock marke factors for some time to come. The most unfavOrable elements in the sit uation are the lateness of the crops, ( continued increase in the cost of 1iv ing and continued labor troubles. Oul