Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-11-13
her Treasury is practlcahy empty ant

her Treasury Is practically empty ana
Mexican credit will not enable borrow
ing abroad under existing chaotic condi-
tons. Huerta has turned to France for
aid; but Paris has already had enough
Of wal financing through her experience
with the Balkan states. Besides, the forth
military purposes will SO absorb the ct,
tentlon of Partisan bankers that they will
have little aid to grant Mexico.
The unsatisfactory condition or Inc
European money markets Is a fundamen-
tai obstacle to any very marked improve
ment in security values for the present
at least, either in Europe or the United
States. In this country we are relatively
At the moment Paris is the particular
point Of strain. and much depression X
lists at that center. Berlin Is IN somewhat
easier condition. So, too, is London. But
the Bank Of England rate, and acts as
an effective restraint upon many imam
clal undertakings. The knowledge that
many millions of new issues are still
held back awaiting a better market post
pones any recovery In sentiment. such
as would ordinarily follow the liquidation
which has taken place during the past
few months. 1t is also prevented any re
cOvery that might have followed with
the close of the Balkan war. There are
signs of financial difficulties IN London
resulting from the excessive speculation
in Oil, rubber. Marconi anu other shares,
have suffered more had it not been for
! the low prices at which they are already
selling. At the present time Europe Is
more eager TO acquire gold than stocks.
and the latest shipments have afforded
little profit as an exchange transaction.
Were it not for these facts, We might
count on a considerable influx of the
precious metal during the next few months
We are shipping large quantities of pro
duce, especially cotton, hence the weak
ness in exchange and the possibility OF
further gold imports. 1t does not look.
however, as If any important amounts
of the precious metal will come this way.
because under the new tariff our merI
chandise imports will expand and London
is sure to check any considerable flow of
gold to this side. Fortunately our supply
is more than ample for our requirements.
It home the situation shows little
chaige. The annual elections have passed
off without showing any disturbing fea-
lures. Fortunately, the vote showed no
growth of radicalism. and the Progressive
vote was noticeably small. The present
session of Congress will soon draw to
a close, it's main achievement having been
the settlement of the tariff question. The
currency problem is still open, but that.
too. promises a solution; If not in this
session of Congress, then in the next.
There is naturally some uneaslness re-
garding the Presidents currently report
ed policy upon the anti-trust problem:
hence it Is expected that this auction
viii be actively revived during che APP
preaching session of Congress; and the
leaders of many of our great corporations.
as well as those interested In their secur-
tiles, are becoming decidedly uneasy over
llutlons OF some OF these concerns are pend
ing is regarded as Inevitable. 1t is some
What early, however, to take any real
alarm over this question. Ii the first
| Mace no "varV iTnnnrtOn nj tnnuy t1aDiS1affOr
Is probable during the next session of
Congress-, because action upon SO great
and complex a problem is sure to be slow.
1t would also take several months befor,
the two branches of legislation could
reach an agreement, and by that time the
camraign for the Congressional elections,
would be under way. Besides, It is a
matter of record that important legIsla-
is almost impossible. 1t should also be
remembered that the Northern Securities
Company, the Standard Oil and American
Tobacco companies and the Union Pacific
were Obliged to dissolve under the Sher-
man act, and that in each case none OF
the dire consequences predicted happened.
In each instance. the dissolution was ac-
compllshed without any serious IMPAIR
fined chiefly to the annoyances and in
conveniences imposed upon stockholders
an dmanagers. Judging by past exper-
fence, there is no reason for any serious
otdiHI dS StlsoftI LIE dIlI.tTuSLa DTODlen,
although the uncertainty attending the
same exciteS tdisrust and places an effec-'
tnal check upon all new initiative. For-s
tunately, the. Supreme Court has read
act in a series Of decisions and any i'm
portant changes in the act would cause
needless anxiety.
General business continues to show a.
slackening tendency. This is confirmed by
declining bank returns and frequently UNI
satisfactory reports of railroad earnings.
FallnreS are increasing in number and
volume. No Improvement can be reported
in the railroad situation. Many Of the
great companies are stir embarrassed by
declining net results. even where the
gains in gross are satisfactory, and rail-
road credit is consequently at a COM
rraratively low ebb. The great steel in
dustry shows decreased activity. The
largest producer is only using about 80
ner cent of it's capacity. and prices have
declined on an average about So per ton
since midsummer. The effect of the new
tariff is IN element of uncertainty in the
markets have also been declining sharp
~. and it is quite probable that moderate
Quantities OF foreign steel may find their
way to the American seaboard. Such
arrivals. however, are not expected to be
OF Importance. excent for their indirect
Inference upon domestic prices.
The outlook is for IN unsettled and
fnctuating market. While general com
Nv dIS ioNF&SdNlSidctOTS ~ SIN these
have been very literally discounted, as
is shown by present low prices for many
very desirable securities. The market has
beer sold almost to q standstill. and the
Technically the situation is SOUND. and
prices would readily respond to improved
conditions. For the time being. however.
We can only advise conservatism in finan-
cial Operations.
HENRY CLEws.
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