Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-05-06

poses. but the figure nevertheless
show a contraction in new capital
application. Another indication OF
restraint upon enterprise vas the
charters granted in the principal
states during April, which were tigur-
ed at So, 100000, compared with
$40, 5000 a year ago. a decrease OF
$lll, 800, O00.
At home the financial situation mas
also been unfaYorably affected by null
tiplying signs Of business reaction.
Clearing House returns no longer
two " three months ago, but no" fire.
~Vucntly show decreases compared
with last year. A decided hint OF
caution must be read into the last
report Of the national banks in the
United States, whose percentage OF
reserve is down to 20.44, against q. 80
a year ago. During that period loans
have expanded $29J,0OO. O'p. Mean
while the sentiment iavOrlng the new
banking bin is growing. but needs fur
ther encouragement from the business
community. Railroad earnings are
.nu'h less favorable than in the first
quarter of the year, the returns on
thirty-nine roads during the first half
Of April showing a loss compared with
last year, while the previous months
were showing very satisfactory in.
| crcaScs. OF course, the floods were
partly accountable for these losses,
but railroad returns generally speak
| ing, both gross and net, are less sat
lstactOry. The steel trade is still we'll
occupied on old orders. which will last
for some weeks or months to come.
but new business is S~lackening, and
should the railroads continue to post
pone their improvements the iron and
! steel trade must unavoidably be affect
cd thereby. The railroad situation is
further complicated by the continued
demands Of labor. Now that cOnces-
siOnS have been made to engineers
and tircmrn, corresponding allow
anrrS will have to be made TO on
ductorS and 1rainmen. The latter
have already made demands that il
granted would cost 81, o0O, 900, fol-
lowing the increase of 100000 600
granted in 1910. What with increased
operating expenses, decreasing traffic
and the growing difficulty of obtain
ing capital at reasonable rates, the
position of the roads is an undesir-
able one, particularly for the weaker
however, in the fact that railroads
are getting together and propose to
ask the interstate commerce commits,
sion for power to advance freight
rates ) per cent. Their request
should have an impartial hear
ing. The present is not a prOpitious
time for advancing railroad rates
when business threatens to become
more quiet. but the position Of sOme
Of the railroads may become critical
and present tendencies cannot con
tlnue without invoking some sort OF
crisis. We must either have rationa
and fair regulation instead of one
sided regulation. as at present. or the
country will face the alternative o
government ownership much sooner
than expected or desired.
The most encouraging element ii
the outlook is the crop situation. The
prospect is for a large yield of winter
wheat, and the soil is in excellent con
dition generally because Of an abund
ance of moisture through the sprils
months, which is the most importan'
requisite in the start toward a go6t
, harvest.
While the above is a candid analy
sis of an unsatisfactory situation
there is no reason for any undue pes
simism or depression. The country i:
t simply slowing down for a period, o
temporary reimbursement. There is NJ
general unsoundness and there is CIV
: cry reason to anticipate a fresh for
ward movement after a period of rea
sonable rest and liquidation. The tar
if question will soon be settled ant
!, the effects Of revision will sOOn be
| the effects of revision will not only
prove less harmful than expected, bu'
!; have probably been we'll discoted al
, ready. BESIDES, the lower rates o
duty when established will undOubt
| eddy be a stimulus to many lines o
trade. Prices on the stock exchange
, have had a sharp decline and are en-
, titled to a good rally on any favorable
, developments; particularly as thu
short interest in some directions has
expanded considerably. Many Of thu
best investments are selling at very
attractive figures and considerable
amounts are being quietly absorbed
by shrewd buyers. Speculative opera
tons will, however, have to be con