Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-06-25
IS
NOV BETTER
SAYS CLEWS
Railroad Earnings are Salts.
factory for First Week
in June
Outlook is Far Better and
Gradual Hardening
Stock Market
BY Henry CleWs.

| BY Henry CIeWs.
NEW YORK, June 22.-Anothe1
week of apathy has been passed on
the stock exchange. There iA how.
ever, a much better undertone in
course of development, and if moth.
ing interferes the outlook is for i'm
iprovement generally in the business
situation.
Railroad Earnings Satisfactory.
Railroad earnings are satisfactory,
thirty-five roads reporting for the
first week in June showing gain of
" per cent over last year. Bank
clearings showed a gain of 10 per
cent for the second week in June, and
this in spite of limited speculation.
Crop reports are more encouraging, it
| being we'll understood that the con-
dition of the leading crops has con-
| siderably improved since the govern
! ment report on June /. Our foreign
trade continues in very flattering con-
dition, the total exports for the II
months of the fiscal year amounting
to $1,000, 100000, an increase of $780,
600, 0O0,000 over a year ago. During
the same period our imports amount.
ed to $1,522 100000 or $117,0O0,O00
more than year ago.. This left
handsome trade balance in our favor,
which of course has been largely set
tied by the unseen items in the &C.
counts, such as freights, commissions,
remittances, etc. Naturally the vol.
ume of our foreign trade has been
much expanded by high prices. New
ertheless, an investigation as to guam.
titles shows that gains have been
general; the only exceptions worth
noting being a moderate decline in
the quantity of corn and beef export
ed. The effect of price fluctuations
upon our exports was striking7y
shown in the case of cotton, which in
spite of an increase of 100000 bales
in quantity sent abroad for the elev.
en- months showed a falling off Of
$17,500OOO in value, owing to lower
prices. One of the most encouraging
features in our foreign trade is the
large growth in the exports of manu-.
facturers, which is certain to con.
tinue and may be depended upon to
1ill the gap caused by elimination in
shipments of food products required
at home to feed rapidly growing
population.
Wall Street interested.
Wall street will be considerably in.
terested in the effects of the July dis
bursements which are second to the
January returns in Importance. This
year they are estimated at over $780,
1000; considerable increase over
the returns of year ago. There is
apparently a good investment demand
for securities combining both safety
and profit. Low rate interest bonds
are neglected, and popular preference
is turning toward the better class of
industrials and referred issues. Rail.
road securities for the time being are
less in demand, although the better
class of short term notes are readily
absorbed. In due season - railroad
shares will doubtless regain their Gus.
tomary popularity; but the past year
which involved heavy concession
to labor when business was at a com.
parative standstill, imposed heavy
financial strain upon the railroads,
and however we'll this may have been
endured, 1t naturally affected the
market for such securities Forum.
ately the railroads are now emerging
from this period Of depression and
reporting steady gains in earnings.
1t is to be hoped that they may be
allowed to recoup themselves for past
shrinkage before any further demands
are imposed upon them. Fortunately
the demands of the engineers and
other railroad operatives have gone
to arbitration, so that on both sides
there will be better opportunity for
mutual justice than could ever have
been obtained by strikes, lockouts,
or any other form of force.
While the outlook of the stock mar
ket is for betterment, the situation
Is not without its drawbacks, which
should not be ignored. New security
enormous. 1t is questionable whether
any further important additions might
not bring on a fit of financial indi-
gestion. The enormous demand for
new capital has not been confined to
the United States. It is worldwide
and has been just as marked in Ger
many, France and other countries
as in the U:1itel States. 1t is this
enormous demand for new capital
which enables investors to insist
upon better returns. It also accounts
to some degree for the weakness in
British consols, French rentes and
other government securities, although
the tremendous additions to the pub
lie debt of various nations and mu.
inequalities has been an important
factor in the decline in this class of
investments. AS noted in previous
advices, Germany and Canada were
the first to feel the effects of exces-
i've issues The financial strain in
| Germany has been noticeable ever
since the war scare last summer, and
no little concern exists as to the au-
l nroo chino 1u1v Sofi 1omonts in Ror1in