The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-28
LOW PRICES MEAN
SLOWER BUSINESS
Gut in Steel and Other Things
Regarded in Financial World
as Symptomatic.
MONEY POSITION IMPROVED
Keen Need Of Cash Abroad, How
ever, Makes Outlook Gloomy
for Urgent Financing.
MONEY POSITION IMPROVED
BY u. c. FoRnEs.

By II. c. FORBES.
You can buy steel below quoted
prices. And certain other things are
being pressed for sale at low figures.
This is symptomatic OF slower ousi-
ness.
a mercantile agency of high stand
ing begins its weekly review thus:
sustained progress along conserva-
tive lines is the keynote OF adviccs
from leading mercantile centres"
That docs not harmonize with what
can learn.
note in the same review that COM
mercial failures this month involve al
most twice as much as year ago; that
the weeks bank clearings show a loss
of 10 per cent from last year. and
that railroad gross earnings. despite
tho country's natural growth, have not
improved, while net profits have un-
questionably suffered.
Nothing in all that rejecting "sus-
tanned progress" is there?
NJ: information and my deductions
may be wrong. and the agencys de-
scriptior OF conditions may be IN ac-
oordancc with fact. ! have given both.
SO that the reader who wants TO talk
enthusiastically can accept the more
cheerful report as the correct one and
quote ii.
More Failures Forsecn.
vein, but ] must present only what l
believe to be the truth. I still think
there will be an uncomfortable num-
her OF business failures during tho re-
naming months of 1913, ana that con-
Germs which are counting upon the now
tariff bringing q genuine boom VIII be
disappointed.
Happily. the monetary position in
this country is fairly satisfactory. all
things considered There was much
credit expansion. and there still Is
strain in few directions, but the ten
dency latterly has been toward Inn
provement.
.DisquietinE Foreign Reports.
But private cables from France arc
disuuieting, and Germany Is mono too
we'll off.
The French government has just
placed a ban upon foreign offerings OF
securities. as n huge sum Is needed
for home use. If this attitude be main
tained. the United States will feel ag-
grieved for we are not able to save
all the money necessary for the proper
development of our incalculable re-
sources
There may be a temporary squeeze
in Europe this week before the quar-
terly settlements have been effected.
At home n moderate rise in call money
is all that is expected.
Buy Only Snfe Securities.
to-day events should be avoided at this
juncture. Leave speculative issues
alone.
Investors should conine themselves
10 sound bonds. attractive short-term
notes and only the choicest of seasoned
investment stocks. ones whose divi-
bends are amply secured and whose
quotations do not nuctuate violently
with every passing gust of pessimism
or optimism.
Many trustworthy securities are
cheap at current prices There has
been extensive buying OF short term
notes and moderate Investment In first
grade bonds by influential. well-in-
formed interests. Slut these same pco-
pie are not loading up with specula
tive stocks, for they do not look for
any boom In the near future.
Spectators are apt 10 suffer several
shocks before long-both the bcarish
and the bullish ones.
Radical Legislation Coming.
learn from the most authoritative
sources that President Wilson Is to
recommend very radical legislation at
the next regular session OF Congress.
Capital will be attacked from several
angles. and IL his will is carried out
---as it is likely to be-there will be
q breaking up of the Money Power"
which works through interlocking di-
rectorates.
The Puio investi sation is not to be
forgotten. Vigorous legislation is
planned TO deal with the disclosures
made By the committee.
Although tinanciers are not public
" discussing this phase OF the outlook,
widespread uneas!ness is beginning to
be felt among them.
Avoiding the Storm.
y The Pennsylvania Railroads sale of
its holdings in anthracite coal com
n Of tic
important block Of Cambria steel
stock are significant developments.
Coming events cast their shadows
before you Will recall
There is every reason 70 believe that
Reading Is ready to segreFate it's coal
from its railroad business. and other
companies no doubt will follow suit.
Public sentiment demands this
And Washington does not mean to
lag behind public sentiment In the
matter of dealing with corporations.
Holding Directors Responsible.
Are railroad directors hereafter to
be held responsible for wrecks?
The Interstate Commerce Commits
sions report on the recent New Haven
disaster has caused confederation in
high financial circles.
Here Is what one of tho best known
railroad directors, who IS also a banker.
said to me:
IF bankers must not do any hnanc-
ing for railroads on whose boards they
sit who will look after railroad inanc-
ing?
And II directors are 10 be liable to
be thrown into prison whenever an
accident occurs. who Will want TO be
railroad directors?
II believe In fastening responsibility
upon individuals, but this new pro-
posal has two sides.
1T is q. question calling for the most
deliberate consideration before any
revolutionary action is taken"
Verify, the lot OF railroad director