The Richmond palladium and sun-telegram., 1913-03-17
PREPARATIONS FOR
APRIL SETTLEMENT
Controlling Feature of Situa-
ton For Present Is Mo-
ney Market.
BALKAN WAR STRAIN
Stocks Quietly Absorbed BY
Strong Buyers-Bank
Reserves Low.
BALKAN WAR STRAIN
BY HENRY CLEWS.

BY HENRY cLEWs.
NEW YORK, March 1.-THE con-
trolling feature of the financial situa-
ton for the time being is the money
market. We are now actually in the
period of preparation for the April
settlements which is usually an occa-
zion of stringency at home and abroad.
In Europe the situation has been par
ticularly aggravated by the strain OF
the Balkan war, coming at a time
when the demands of trade imposed
heavy burden upon the financial re-
sources of all the great European
banks The situation in Germany ap-
pears to be less critical than a fort
night ago. Liquidation has afforded
some relief there, and the large ex-
ports of gold from the United States
have also been Of material assistance.
There is no doubt also that the situa-
tion in Germany has been somewhat
exaggerated, probably for speculative
effect. Germany and England are ap-
parently reaching an entente cordi-
ale; but the possibility of Austria
being a disturber of the peace, backed
by Russia, and the proposed large in
crease in the armies of both France
and Germany has introduced a new
phase in the European situation.
Austria A Disturber.
Either some movement toward dis
armament must be attempted, or a
state of tension will be created which
may only require some small incident
to start a serious conflagratiOn. At
the moment, however, there is sense
of relief, as we'll as belief that the
relations between the various powers
are not as bad as supposed. German
foreign trade is still running on rec
ord breaking lines, German prosperity
in this respect being illustrated by the
magnificent earnings of her great
steamship lines, which show an in
crease of 25 per cent net over last
year There is also no abatement in
the activity of British trade. Condi-
tions such as these make strongly for
peace, and it should be remembered
that the greet bankers of Europe are
neither willing nor able to finance
great war; This face itself is one of
the strongest reasons for the mainte-
nance Of peace.
Situation At Home.
The business situation at home con-
tinues satisfactory. There has been no
abatement in the activity of the last
few months The open winter has en-
couraged outdoor work to an unusual
degree. The crop outlook thus far is
entirely satisfactory. Many industrial
establishments are running full time.
Our railroads are over-pressed with
traffic, and reporting encouraging
gains in earnings. Clearing House re-
turns have for weeks past shown liber-
al increases over last year. Less is
now heard about tariff discussion for
the reason that many lines of business
have already amply discounted prob
able changes. The extra session Of
Congress will soon be called and the
subject will come up for active dis
cussion, which may induce more or
less hesitancy until this important
problem is adjusted.
Caused No JoIts.
far caused no jolts. On the contrary
its policy appears to have been to
avoid disturbance. If all accounts are
true the new Attorney General is like
ly to follow somewhat on the policy of
his predecessor, but the reports of a
more radical policy toward Standard
Oil, American Tobacco and the Union
Pacific merger have thus far proved
Gnfounded. No signs Of over-trading
exist anywhere, and our markets are
generally carrying light or moderate
supplies of merchandise Consumption
is so we'll sustained that there is an
abundant opportunity for enlarged ac-
tivity as soon as existing restraints
from uncertainty disappear.
Good stocks are being quietly absor-
bed by strong buyers, and will be
found exceedingly scarce as soon as
the change in conditions is recognized.
The chief. If not the only obstacle to
any improvement in the stock market
is the money situation. Bank reserves
are low, the April settlements are
close at hand, Europe has been draw
ing heavily on this center in the form
of gold exports and easier rates are
not to be anticipated until the adjust
ment to present conditions has been
completed. That, however, is not far
distant.
Better Than Others.
We are in better position to meet
the seasonal demands than any other
nation. We have amply discounted all
unfavorable conditions, and our best
stocks are unQuestionably cheap. On
all pronounced recessions we conf
IDENTIFY advise the purchase of the best
grade of securities. AS soon as the
money market commences to readjust
itself, which will be after the middle
of April, we will probably experience,
good recovery, provided no further
untowards eTents occur.