Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-11-25
CLEW's MARKET LETTER

! CLEW's MARKET LETTER |
New York, Nov. 24.-The stock
market continues to show remarkable
resisting qualities to bad news. Con-
sidering the multiplying evidences Of
trade reaction on every hand, it is
surprising that security values are
so well maintained. Possibly the al
most innumerable reactiOnary tend
encies at work are scarcely appreci-
ated. Bank clearings are showing
steady declines. Railroad earnings,
gross and net, r making increasing
ly unsatisfactory showing. The steel
trade is running at only a little over
% per cent of it's capacity compared
with high tide in the early part OF
the year. Business failures are in
creasing at home and abroad. Real
estate has been overdone, and build
ing operations are on a much reduced
scale. The Mexican situation, the
necessity of adjustment to the new
tariff, the delay in currency legisla-
ton, legislative hostility to capital
and fear of a renewed antitrust
campaign are all exercising depress-
ing Influences. Added to these rather
serious drawbacks are reports from
all parts of the country of a slowing
down OF trade, as we'll as reactionary
trade influences abroad; and we
have a conglomerationi of obstacles
sufficient to hold any market in
check. That they have not forced a
still further shrinkage in values is
eloquent testimony. OF. the general
soundness. of the financial sit1ation.
It is premature to assume that a,
turn for the better is close at hand.
Nevertheless, 1t must be recalled that
the stock market has already very
largely discounted all Of these unto
ward factors, and is in a position to
promptly respond to any encourag-
ing influences. Its technical position
is sound, and a fair short interest
exists which would prove an element
of support in case Of a further de-
cline.
Before very long the market should
feel the influence of easier money
rates. Curative forces have been qui-
city at work for some months pas,
and chief of these has been the con
sentative policy persistently follow.
ed in banking circles. Our banking
situation, though not entirely salts
factory, today is better than six
months ago. Reserves are being
strengthened; loans are made with
increasing caution, and we have an
ample credit balance abroad, from
whence we could readily draw gold
if necessary. This incipient improve
ment in the monetary situation,
though not very conspicuous. is fund
amental and should continue. The
demands in the interior for crop pur-
poses have been more easily met
than expected, owing to the assist
nee offered during the autumn by
the treasury. Funds will begin soon
after the opening of the new year to
return from the west, and bank re.
serves will then considerably in.
crease. We are approaching a period
of preparation for January invest
ment demands. Our leading bankers
will probably exert their influence
towards lettering conditions as far
as within their power. In this policy
they will be working on the same
lines as London and European bank
ers. In Paris efforts are being made
to smooth the way for the big French
loan, and the Russian and German
governments are also preparing to
make large demands in the form Of
new loans. The Bank of England
is still. pursuing a very conservative
policy and its reserve stands at the
high figure of 54.97, or about 5 points
higher than a year ago. There is e.
cry reason, therefore, to expect that
the great banking forces Of the world
will do their utmost to right the ship
of finance during the next few months.
One of the most encouraging Tea
lures, which has escaped notice in
the face of SO many acknowledgements,
is the excellent growth Of Il for
eign trade. In the first nine months
Of the current year our exports OF
food stuffs increased ST.. ZOO, 000,
while our shipments of finished manu-
featured products increased $4,000
Q90.t 1t issin the latter direction that
the results are most gratifying; for,
as we have less and less food prod
ucs to spare, the necessity of ship
ping manufactured products will be-
come the more imperative. Thus far
our importations of foreign goods I'M
der the new tariff have fallen below
expectations, because our own mar
kets have declined SO rapidly as to
shut off the opportunities of foreign.
producers. The workings OF. the new
tariff, however, are still an %unsolved
problem. Should the foreign mar
kets happen to decline more sharply
than our own, there is no doubt bus
that we should have an important in
lux Of foreign goods, which would