The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-03-22
RECOVERY IN STOCK
MARKET PREVENTED
Further Unfavorable Featur-
es Crop Out to Dis
turb Finance.
BALKAN WAR STRAIN
Already $46,oOO,OOO in Gold
Has Been Exported
Look to Wilson.
BALKAN WAR STRAIN
BY HENRY CLEWS.


ing developments continue to prevent
any recovery in the stock market This
can only be attributed to the outcrop-
ping of further unfavorable features
which had not been anticipated. At
bottom lies the disturbed condition of
finances in Europe resulting from the
Balkan war The strain upon European
financial centres was passed on to
New York, and this center had to
bear it's full share of that burden. AS
a result, we have already exported
$46,000,000 gold. Our bank reserves
are practically exhausted. A free call
ing of loans became necessary to meet
seasonal demands, while the liquida-
tion and decline in securities forced
still further contraction of banking ia
cilities. This long-continued strain up
on the credit situation is beginning to
have a restraining influence, not only
in the securities markets, but in mer-
camille circles as well.
The delay in the Union Pacific disso-
luton is a serious disappointment in
banking circles and emphasizes the
difficulties which many of our large
corporations have to meet in going
Through the dissolving process for ad-
justment to requirements of the Gov
eminent. The Easter holidays also
naturally induced a sharp contraction
in Stock Exchange transactions, since
great deal may happen either in
Europe or at home in the three days
between the Goth and oath instants. A
further decline in New Haven, for
merry one Of the very best gilt-edged
securities, has added to the general
depression. This stock is widely scat
tered throughout New England, where
the losses will be sorely felt. and the
heavy shrinkage which it has suffered,
as well as wide public antagonism to
this corporation, aggravated the gen.
eral situation.
General Trade Active.
General trade is still active as re-
suit of back orders, but there is
marked hesitation in many lines Of
business in the placing of new orders.
For this the tariff is partly RESPONSE
BILE, because no distributor or manu-
facturer is likely to stock up with
merchandise at present prices, if the
latter are to be lowered by tariff re-
auctions.
This it should be remembered
means merely postponement of bust
ness, and not any actual curtailment
in the long run, for consumption is
going on meanwhile, and the gay Gre
atcd by hesitancy must inevitably be
filled up later on. Insofar, however, as
a reduction of the tariff may tend to
lessen profits, this is a disturbance OF,
real consequence.
Three Big Failures.
Three important failures occurred
in the dry goods trade last week
These we're generally unexpected and
were precipitated mainly by the chang
ed conditions in the money market
which tend to check expansion and
bring weak spots to the surface A
still further cause of weakness is the
general unrest at home and abroad,
beth social and political, which as yet
shows no signs of abatement When
business was good and orders came in
freely, the disposition was to ignore
these influences. Now that business
shows a slowing down tendency, the
effect of such influences becomes
more apparent.
Eye on Washington.
Slowly but surely confidence is be-
ing undermined by this condition of
affairs, and business leaders are keep
ing close eye upon Washington to