The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-10-07
REPORT TO BREAK
DOUBT ON CROPS
GRAIN HARVEST OF THE COUNTRY
rs EXPECTED 10 BREAK
ALL RECORDS.
BANK RATE TOO LOW
EUROPEAN RATES MUST ADVANCE
TO FURNISH MONEY FoR NOV
ING GREAp AMERICAN
CROPS.
BANK RATE TOO Low
tns THOMAS snoTMELL.l

NEW 1DNh. OCT b.--1ne l nite1
States government viii make a re.
port "Wednesday on. tie grain harvest
Of the country that will break ala
records and pat an end 10 all doubt
on the snbject ~ the crops. This re-
port has not been discounted In tn.
stock market. 1t viii make certain
a record tonnage for railroads. both
Of agricua raj >prodacts aud Of manu-
facturcd things in return. 1t will in.
sure a shortage Of cars for a long
period and Will compei All tine rail
roads to spend money on a large
scale for the next year The con,
gestion of freight that will undouoted-
iy develop viii make shippers m Jre
willing To see Il reasonable ADVANCE
In freight rates. IL Is uuaei 500.
hat the arbitration board will with
hold its report on the question of al
vancing the wages Of railroad men
anti after election.
So great is American prosperity
that European money rates must he
advanced in order 10 furnish funds
for moving American crops.
Bank Rate Too Low.
The Bank Of England rate Of !
per cent is too low To last long The
Bank of France is strengthening its
position by Withholding gold pay
fnents this week. There is nothing
in international affairs to discourage
American stockholders
Many people are hoicIng away from
the stock market on account of poll
ties They fear agitation. fargettinA
that nothing can he done for Il year
at the earliest IN that line. Ii was
known that M Wilson will not call
q special session for tariff legislation
although he might do such a thing
for some other reforms needed much
more. II IS quite likely also that
Mr., Wilson Rs president might a1nrf
a new policy regarding the great cor
porations realizing that enforcement
Of the sherman law has done no good.
Tho oil and tobacro companies are
prospecting amazingly as a result Of
dissolution and a&ns1. hesEs. Elaine that
could happen to the stcel corporation
would be similar treatment.
New Tobacco Combine.
The independent tobacco companies
that were fighting the trust for SO
many years find themselves in a de-
plorabie condition
Being brought svifhn the Jaw the
various parts OF tire Tobacco trusts
have begun aggressive campaigns
and are flooding the market with
goods that are so widely advertised
as to oxershadow the independents.
Some Of the strongest Of the indie
pen,Ients recognizing the situation
have banded themselves together and
will soon place thsmsshe s before me
public In th.. shape or the lew com.
binatipn.
Henry {. Frick aid other tinan-
ciers ~ the first rank are interested.
The new company Will have no con-
nection with the old combination to-
bscco' outfit, but viii begin business
with plants operating 10 an extent
thar VIII enable r. ~ pay CiE1usEds
from the start on rs preferred stock
and that the END OF the year to have
earnings II at least 10 per cent for
the account OF, the common.
Railway earnings will, Of course
continue 10 improve in view of the
great tonnage that the big crops have
made certain The operating ex'
penses Will not Increase as rapidly as
the gross- %SsN
No Retiaction in Dividends.
Dividends, Therefore, VIII not be re-
6uced a43 many Increases. OF dlri-
dends must be expected in the course
OF the next wear Railroad stocks are
growing in favor.
In the copper stocks a remarkably
STRONG situation EXISTS. NQt only Is
the metal high, but the stocks are
relatively low. The growth OF gen
erel business is such that the use OF
copper must be increased right along.
The mines have increased their out
put as rapidly as possible in the last
Few months and are now turning udt
more metal than ever before in the
history .of the industry. The demand.
however. grows faster than the con-
sumption, and It - the fear Of pro-
dncer-s that this demand will force
prices up To such high level that
many of the idle and high cost OF
production mines viii be brought into
The big companies do nct
want. cu.nsr metal 10 60 higher--
Conditions in the steel trade could
hardly be better Nobody is so much
as the directors of the COM
ranv and many of them have neg
lected to buy the stock for invest
ment. A healthy demand for the
common stock of the trust IS. there
and there Is little iouot
about it's making new high records
within the next few months. IN"
company's output should be above
s12 a ten before the end or 1919.
Public Must Re Patient.
The price of meat and of some other
foods is going to cause disturbance,
because ne promise. can pc aeId oust
Of lower prices in the immediate
future II Is true the crops are the
largest on record. but Il is also true
that owing TO the small crops OF last
wear tht. farmers were compelled to
send thousands OF animals TO the
slaughter house because they had no
feed to keep them over. Now there
il plenty Of food, but not enough ami
mails To eat II, and it will take two
wears AZ least to restore the number
az animals to normal. The public
must be patient with high prices on