The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-01-09
RETIREMENT IS
Seen BY CLEWS
IN BOTH FiNAN
ciAL AND COMMERCIAL SEN.
TiMENT IN THIS couN-
TRY.

The first week Of the new year show
ed slight betterment in both financial
and commercial sentiment. The i'm
provement was not so much observ-
able In any Increase in the volume OF
business as in the recognition OF the
fact that. while conditions are conflict
Ing and in some respects unsatisfac-
tory, corrective forces are steadily al
work. Here and there are signs of
abatement in several unrest which is
beginning 10 show itself in a more
rational attitude in political circles
toward large corporations. The only
exception is Il fresh outbreak of the
Investigation mania In form of an
inquiry regarding the alleged money
trust" While trusts and the tarir are
still the first subjects of importance
In the public mind. the chances of their
being reasonably dealt with are much
better than three or six months ago.
No radical action ON trusts is probable
during the present session of congress.
which will be chiefly devoted TO active
and possibly somewhat heated discus
sion. There is, however. some prospect
OF positive action on the tariff question,
the greatest likelihood being a sharp
cut in the steel schedules and the plac-
Ing of iron ore on the free list. AS
FOR cotton and wool schedules. these
also may be revised, but at the mo-
ment 1t looks as If steel would come
flrst. The labor outlook is somewhat
uncertain, but the sorry disclosures
connected with the McNamara case
have had a SOLDERING effect upon labor.
and are likely to result In the selection
OF higher type of leadership in the
future; Il result which would benefit
labor and capital alike by moderatng
class warfare and facilitating settle
meht ofrthe differences between en-
ployer and employe by discussion and
not force. The issues of the Preslden.
tai campaign are now sharply defined.
and their outcome can already be some
what foreseen. Public sentiment Is
pretty definitely formed, and the chief !
doubt regarding the future is that OF
personality concerning the different
candidates This. OF course, may re-
main unsettled until the conventions
next summer. although tbs not inpos- |
sible that the successful nominees will
be correctly guessed at in advance.
On the Stock Exchange there has
been quiet and fairly hopeful feeling. !
rbe investment demand, however, ex-
per1enced In January has not thus far
made Itself felt with the usual free, !
iom. Bonds are dlsappointingly duh.
rhis may be explained by the general
feeling OF caution aAlong Investors and
ne unwillingness OF large buyers. TO
axe hold until conditions become
more settled. Another factor is insIs-
ence by the holders of capital for bet
er returns. Low interest -bearInR
Mortgages and bonds are slow To sell In
'pite OF safety. This desire for safety
n investments is illustrated by the
'henomenally large output of bonds
luring 1911. The output OF new securi-
les last year is now estimated at about Il
l.7SOOOO.o0o. including approximately
sso.ooO,OOO bonds, over $4,000 900
hort.term notes and only about ssb2.
1900 In stocks. This tremendous pre.
0ndetance of bond issues over stocks
highly significant. 1t means not
My aelarge increase in the fixed obi.
ations for railroads and industrial
oncerns. but also shows the strong
reference of investors for bonds in |,
ruer TO escape the uncertainty attend.
ng ownership of stocks. Recently the
ew issues announced have been com.
aratiYely small but ii is understood
nat important issues are still pend
lg and awaiting favorable conditions. !
, this connection Il is interesting tn
Deserve that some of our financial in
itutions are contemplating the issue
notes and mortgages bearing more Z
oeral rates OF interest than have l
reviohsly been customary In other 4
'ords. they are willing to raise their :
Ids for new capital Under present
Dndltions Il would be better for our
iilroads to issue short-term notes than Q
onds. Investors would take the notes I
iore readily than bonds and the roads c
ould avoid further piling up of long z
ate fixed obligations. =
General business is quiet, but there
every indication of soundness. Re- 6
orts from the interior are slightly
iore encouraging. indications suggest y
'g that reaction has seen its worst and I
lat any change is likely to be In the :
Irection of betterment rather than T
lrther depression. One important :.
ct Is that soil condition throughout J"
'e West have been exceptionally fa-
'rable. thus warranting the expecta-
on for good start In next seasons
ops. Railroad earnings are fairly
ell maintained and occasionally show
icouraging increases in gross. In
her cases. however. the latter are off u
{ by somewhat disappointing in o.
eases in current expenses, resulting q