The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-10-21
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

NEW YORK, Oct. 21.-The stock
market has exhibited exceptional re-
sisting qualities. AS in evidence the
outbreak in tire Balkans forced heavy
European liquidation as the result of
overspeculation in some of the foreign
bourses. This induced large selling
of American stocks, estimated at be-
tween 100000 to 100000 shares, for
the evident reason that these were
| the best securities on which to realize.
AS to the immediate future of the
market, not a little depends upon po-
litical developments between now and
election day. What is almost of as
much Importance as to who will be
elected, will be the Congressional re-
suits. The great question is, will the
prevailing political unrest in certain
sections result in materially changing
the present character of Congress?
The country has had more than
enough of unreasoning attacks upon
capital and corporations which are
not the only evil doors in the country
and have in the last few years re-
ceived more than their share of criti-
cism and persecution. For this reason
the Congressional returns should be
closely watched after election day as
an indication of political tendencies
durin gthe next two years. What the
country may reasonably hope for is
more temperate and rational treat
ment of our political ills; consum-
nation devoutly desired.
Monetary conditions continue an i'm
portant factor in the stock market.
The west appears to have made more
than ample preparations for the pres
ent crop movement, the inability of
the railroads to handle the grain crops
having reduced the demands for mon
ey to smaller proportions than ex-
pected. Southern demands upon New
York have not thus far been excess
sive. 1t is again to be noted that each
year the interior becomes more and
more able to finance it's sectional re-
quireemnts. Nevertheless, an active
demand for money is assured for some
time to come. Crop demands must
of necessity exceed all precedent, and
an inevitable trade expansion will also
! impose a heavier burden upon the
monetary supply. We have been oblig-
ed to take back $25, 100000 to $50, 0O0,-
900 securities in place of gold. In all
probability, however, the influx of the
| precious metal is only temporarily
delayed. Now that the financial crisis
| in Europe is about over there will
| be less difficulty in our purchasing
| of gold. Our foreign trade balance is
running largely in our favor Our ex-
ports of cotton and grain promise to
be havy and we are still shipping I'M
usual quantities of manufactured ar
ticles; the activity of trade in foreign
countries is stimplating the demand
for American manufactures, in spite
of high prices. Moreover, Europe will
probably buy back a portion of the
stocks recently sold, now that the
Balkan outbreak is likely to be re-
stricted by the great powers, and also
! for the reason that American securi-
ties are in a stronger position and
offer better returns than any other
available in the foreign markets.
| American prosperity is based upon
a rock. We have the finest harvest
on record No class in the country
today is enjoying such general pros
perity as the farmers. In nearly all
sections of the country and for nearly
every agricultural product large yields
and high prices prevail. To such an
extent is this true that a great deal
of jealousy toward the farmer is al
ready developing, and he is becom-
| ing more and more accused of being
| the chief cause for the present high
cost of living. Doubtless he will re-
| ceive more blame than he is entitled
| to; although he is guilty of no crime
| beyond securing the hest price under
free competition for his product that
| he is able to secure. In due season
this condition will no doubt correct
ITSELF Already there is a movement
back to the farm, and those already
in the field are seeking to increase
their product by better and more
scientific methods of agriculture. This
| is the only true method of lowering
| the cost of living, viz: more product
and less waste. Not a few products
! have elready declined materially in
price. which should somewhat modify
the present high cost of living. Meat
products, however, continue high.
mainly because of actual scarcity Of
cattle, which will require a year or
| two to overcome.
| Just at this time securities should
| be bought with caution. me present