Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-08-21
DUNNs WEEKLY
Trade REPORT


New York, Aug, 20,--Friat taking
induced q sharp reaction In the stock
market during the latter part OF the
week. hut the forces behind tho 70,
cent advance are still In evidence
and are altogether too powerful 10
have so quickly exerteA their full
effect. The causes Of this rise arc
deep-seated and radical.
We have had a continuous decline
in values lasting for nearly q year.
Twelve months Of pessiMism IL u
very, very long spell. Human nature
revolts against such prolonged de-.
preston. and the reaction in senti.
ment when It does come Is almost
| sure to be or less violent. espe.
| cially under the mercurial American
temperament. But more important
than this influence, which Is Of nee.
assity unstable. Is the radical change
in the money markets all over the
world. The end Of the Balkan war
which suddenly arrested trade and
industry when running at record
breaking speed, almost brought us
upon a world panic. Retrenchment
and economy were promptly and Wig.
orously enforced in all the great ma.
tions. Ely skillful plotting the great
bankers unfortunately an unpopular
class in the! United States); averted
grave International disaster. Excess.
i've capital applicationsssspeTe effec.s
lively restrained. CrediEAWas cur
tailed within severe limits. Weak
spots were eliminated by painful
liquidation. Bank reserves were re-
stored and a basis was thus laid for
a new expansion and a fresh forward
movement in due time.N This is the
story of monetary operations from
the world point of view.
The period of rest cure Is now over
for some of the parties interested,
and nearly owe for others. Curative
influences have almost unc0nsciOusly
done their beneicent work, and re-
cuperation is now in order. For two
years at least the United States has
been a laggard in commercial activity
compared with : England and Ger
many, and for we'll known reasons
We have been constantly marking
time. Being beyond the zone OF d.
rect influence fro mthe Balkan war,
it Is but natural that we should come
first in leading the movement for re
covery. The monetary position at all
financial centers in this country has
greatly improved. Bank reserves
have been rising as a result of a
persistent policy of conservatism,
and there is no longer any danger
of financial crisis or panic. The
country is now a%bundantly able to
finance its autumn crop and business
requirements, and the renewed cour. (
age felt in banking circles Is extend.
ing itself to industrial and CONNER.
cial quarters. In this improvement
the areasury under its present guild. I
ance has been an important factor.
Its policy has been to manifest abb
solute readiness to afford all possible
legitimate aid to business. Naturally I
it has had a most stimulating effect
upon business sentiment; the offer
to deposit $4,000, 900 or more of re-.
serve funds in the West and South
having had the effect Of making those
sections very largely independent OF
the New York banks. This list named
offer OF the treasury creates fully
$200,0O0.O0O of new credit. and must
therefore be regarded as a transac.
ton of an inflationary nature. Its
immediate effect has been to create
easier conditions among the New
York banks, and the sudden, relief OF
monetary pressure has inevitably 4
stimulated speculative activity. Com
mercial paper Is decidedly easier and
in good demand; 5h to 6 per cent
now being quoted for 80 days, with
probably lower rates later on.
There are other reasons, however,
for regarding the situation as more
satisfactory. The tariff bill will soon
become law. Its provisions are pretty
we'll settled and have been largely
discounted. AS soon as the bill is
definitely passed there will be q
prompt resumption of industrial and
commercial activity, rendered In.
perative by the gap In supplies after
nearly a years conservatism in buy.
ing and selling. The prospects of q
more satisfactory currency bill are
increasing daily. The progress Of
the new measure is somewhat painful
and slow, but such changes as have
been made in the proposed bill are
generally of a desirable nature, and
reasonably satisfactory bill prom.
Uses to pass the house during this
session of congress. The senate is
somewhat doubtful, although 1t re.
mains to be seen as to how far Presi.
dent Wilson's. growing influence will
overcome that obstacle.
The reports from the business cen.
ters Of the West are exceedingly en-
c%ouraging. There is general acticity
at all the principal commercial /, cen.
ters and little or zone OF the gloomi.
ness which has been so conspicuous
in East. The one point Of dis.
appointment In the present situation
is the unquestioned damage to the
corn Scrnn which conservative sesti. l