Las Vegas optic., 1912-08-20
SITUATION SAVED
BY ENORMOUS
CROPS
PROSPECTS FOR A BAD YEAR IN
BUSINESS ARE QUICKLY
DlsPELLED

OF new wealth produced from the soil
in 9 single year; sum equal to ninc
times the national debt. 10 the great
agricultural sections Of the northwest
this win prove an irresistible sttrnu-
lus. Merchants and bankers and man
uiacturers ALIKE are prepared for q
good business season. Our railroad
managers anticipate heavy traffic
and are distributing their equipment
accordingly. A month hence we may
expect to hear loud complaints OF car
shortage. Some time agn the rail-
reads placed liberal ordets for cars
and locomotives, and crush Of
freight seems inevitable when the
s,nr movement eastward reaches fits
height in September and October.
Two or three months hence the west
ern lines are sure to report satisfac-
t9ry gains in earnings The railroads,
however, VIII not benefit merely from
the large crops, they viii benefit in
cidentally quite as much by what the
crops are turned into (meat. etc), by
the general stimulus to manufacturing
industries and by the vast quantities
Of manufactured products sent back
from the east in return for the golden
harvest and raw products of the west.
No serious injury can now happen to
corn, for only the northern section OF
the crop is in danger of early frosts.
Cotton is more exposed to this risk
than any other crop, and the next two
or three weeks may prove a critical
period. But at present there is no
cause for anxiety and the outlook is
for very large yield--14, 100000 bales
or over.
Our Industrial outlook is very salts
factory. The steel trade always al
faithful indicator of business condi-
tons lis exceedingly active and prices
show a steadily advancing tendency.
Judging by the amount OF business
ahead for both railroad and general
construction purposes. the indications
are for a heavy business for some
months to come. The outlook for the
export trade in steel is also satisfac-
tory. In foreign countries there Isl
large demand for American steel
products owing to worldwide expan-
sion. In both England and Germany
the steel trades are taxed to their
utmost supplying foreign and domes-
tic requirements. Last year the Uni
ted states exported $3O0,OOO,OOO Of
steel fabrications, which was about
cne-fifth Of our total product, esti-
mated in the neighborhood OF 81
5000 100000 per year. Plainly our
steel industry is in splendid condition
and not likely to be injured by any
probable tariff legislation, especially
as the president promptly vetoed the
Stanley reduction bill. The steel
shares in consequence have lately
shown justifiable strength. The COP
per shares were another strong group,
the better feeling in this section Of
the market being due to the knowl
edge that refiners were securing bet.
ter prices for their output. Quite
a number of other prominent indus
tries showed an advancing tendency
because of satisfactory business con-
ditions and increasing profits.
In the railroad section Of the mar
ket conditions were somewhat con- /
flicting. Some roads are known to be
exceptionally prosperous. Others are
far away from obtaining satisfactory 4
results, causing concern among far {
sighted railroad managers. The heavy .
made to labor last year,
followed by the serious demand now
awaiting judgment, have placed fin
sncial strain upon number OF the
larger corporations. Everything that !,
he railroad buys has advanced, but +,
The companies have not been permit
ted to make compensating advances
il rates, and have been persistently
,arassed by government interference.
rhey have no chance Of recouping
themselves except through increased !
raffc Were this to fail them their I
light would be quite serious. Among
he unavoidable demands pressing up
IN the railroads is the imperative ne
essity for better freight and passen-
,er facilities in the large cities. This
means tremendous outlay Of new ]. !
apitaI for construction purposes fre- z Z
uentIy OF an unproductive nature. I I
luring the next year or two our rail- I, I
oads will be obliged to raise large
mounts OF new capital which, in
lew Of the higher rates for money, NJ
i'll prove still further handicap CI
weak roads, So long however, ar
! business continues large in volume te
ey may be able to struggle through Il. 81
IA IL IS not impossible that ultimate saI