The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-09-01
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

Holiday quiet, Mexican difficulties
and damage to cotton and corn from
prOtracted drOuth naturally lessened
activity on the Stock Exchange. Va
cations, however, are nearly over, and
the return Of many buoyant absentees
is likely to stiffen the spirit of hope
fulness now developing after almost
year of depression The main hind
rance to further stock market recov-
cry has been the Mexican problem.
Perhaps this affair Is taken rather
more seriously than deserves, for war
with Mexico, even were it probable,
would not be a very serious matter
to the United States, and happily
there is little or no chance whatever
of such 81 misfortune. President Will
son and Congress are in close accord
for preserving peace. Nevertheless,
security markets are peculiarly sensi-
tive to troubles of this character, ow-
ing to their speculative possibilities.
For some time to come, at least until
after the new election, Mexican affairs
will necessarily be unsettled, and
hence factor of uneasiness here,
especially in view of large American
investments in that country. 1t would
seem, however, as if the injurious eff
fects of this controversy had been
fully discounted in the New York mar
ket. The full effects of President Will
sons soothing but firm Mexican mes
sage have yet to be seen
Reports of further damage to cotton
and corn had a decidedly dampening
effect upon bullish ardor. 1t is evil
dent that considerable damage has
been done to these two important
crops and that the next Government
report on cotton and other important
products will be an unfavorable one,
even allowing for the fact that August
is almost always a month of agricul-
tural deterioration. Our leading crops
not infrequently show loss of to 6
points in this period, and the drop in
cotton in August will exceed the aver
age, estimates ranging to 10 points
exerted its full influence upon both
cotton and corn markets, and is now
causing a setback to trade in the af-
fected districts; though the States as
a whole will not suffer seriously be-
cause of good crops and offsets in
other directions. Taking crop injuries
at their worst, no calamity has oc-
CURED, but only a disappointment in
early hopes, which will have to be
taken into consideration in estimating
future operations. Two effects will be
to bring better prices for these staples
to growers in other sections and to les
sen the demand for money to move
crops in the injured districts; also a
smaller traffic for the railroads.
July exports amounted to $160,50O,-
600, or 81. 100000 more than a year
ago; the increase being mainly in
grain and manufactures. Imports,
however, were only s139, 100000, So
100000 more than a year ago. This
left an excess of exports for the month
Of over $20,0OO,000, compared with
only 100000 last year and $4,000. 900
in 1911. Here is a very satisfactory
addition to our credit abroad Some
interesting developments may be ex-
pected in our foreign markets during
the next few months. Exports should
expand because of our bumper wheat
crop. OF course. there is steady con-
traction in meat and mineral oil ship
ments owing to growing demand and
scarcity at home, but this promises to
be offset by our steady growth of ex-
ports of manufactures, particularly OF
steel products. The most important
influence in our foreign trade how
ever, for the next few months will be