The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-11-24
OUTLOOK FOR THE
MARKET BETTER
But Henry Clews Advises Conser-
yatism for Present

New YorI>-'rhc stock market con
tuucs to show remarkable resistinl
qualities Co bad news Considering the
multiplying evidences Of trade reac'
ton ON every hand, it is surprising
that security values are SO we'll main
tanned Possibly the almost nnumer-
able rcactionary tendencies at work
are scarcely appreciated Bank clear
ings are showing steady declines Rail-
road earnings, gross and net. are max
ing increasingly unsatisfactory show
ings. The steel trade is running al
only a little over 60 per cent OF its ca
pacity compared with high tide in the
early part of the year Business fail
urcs are increasing at home and
abroad Real estate has been over
done and building operations are on a
much reduced scale. The Mexican sit
uatlon, the necessity of adjustment 10
the new larin. the delay in currency
LEGISLATION. legislative hostility 10 cap
ital and fear of a renewed antitrust
campaign are all exercising dcpresS-
ing influences. Added To these rather
serious drawbacks are reports from all
parts of the country Of slowing down
eft trade. as well as reactionary trade
Influences abroad; and we have "a
coneiomcraGon OF obstacles sufficient
to hold any market in check That
they have not forced a still further
shrinkage in values is eloquent testi-
mouy of the general soundness of the
financial situation 1t is premature TO
assume that turn for the better is
close at hand. Nevertheless II must
Dec recalled that the stock market has
already very largely discounted all of
these untoward factors, and is in a po-
sition To promptly respond 10 any en-
cuuragug influences Its technical po-
sitiou is sound. and a fair short inter-
est exists which would prove an ele-
mcut OF support in case of further
decline.
Curative Forces at Work
Before very long the market should
fee. the influence of easier money
rates Curative forces have been quiet
Iy at work Tor some months past. and
chief of these has been the conserya-
tive policy pcrsistcuuy followed in
UWsu- circles our banking situa-
tun. though NOT entirely satisfactory,
to-day Is better than six months ago.
RESERVES are being strengthened. loans
ur' made with increasing caution, and
uc have an ample credit balance
abroad from whence We could readily
draw sold u necessary. This iucipient
Improvement u the monetary situa-
tiau. though uui Hcry conspicuous, is
fundamental aud should continue. The
demands .n the interior for crop pur-
posses Has, been more easily met than
uNu.etod, owing 10 the assistance Of
tered during the autumn by the treas
100. Funds win bc-.u soon after the
opening OF tHe new year To return from
the West and bank reserves will then
considerably increase We are APP
proaehm- period Of preparation for
january Investment demands our
l.rJ.u- bankers Ulll probably exert
Ho.r influence towards h.'rorup cole
alInm. a- far a- Within aIr power.
lH rH. ur-ry they will aa working ou
rHr .mr lines a- London and Euro
u,m bankers. I'm Paris efforts are be-
Iu- made Go smooth tho way for the
bI- Ireu.h loan. and Oh, Russian aud
German governments aru also propar-
ms co. make large demands u the form
ut urv loans The Bank Of England
o. lIlr wrsuiuv very conservative
policy and is reserve stands at the
M-g uauur of 1j"1. cr about % points
ulhar rmua yrsrr AGO There is every
reason therefore 200 r>pcrt that the
aroat aauEu- forces of the world viii
do their utmost o right the ship OF
finance during th. next rcN mouths
An Encouraging Feature.
our.uf tine most encouraging features
which u1s escaped notice in the face of
.u mant d.-uouragomouts, is the excel
lent growth 90 our foreign trade. IN
tine first uur months of the current
year our exports OF food stums iu-
creased ,IGuuuooU while our ship
iuDuts ot finished manufactured prod
wts Increased s31.o0o.uoo. Il is in the
.ul,r direction that the results are
MOST gratifying for as We have less
aud lcss food products TO spare, the
necessity ur shipping manufactured
products viii 1eaomc the more impera-
tive. Thus Tar our importation OF for
uigu goods under the Now tariff have
.gjIru below operations because our
own markets. have declined 50 rapidly
ss 'u shut of the opportunities OF for
I-u producers The workings Of The
lcn tariff however. are still am un-
solved problem Should the foreign
markets aappon 10 decline more sharp
is than our own, there Is no doubt but
hat we should have am important In
Iux of foreign goods. which would nat
july tend TO further deprcss our own
markets and anc,, our
accordingly. Textiles are
rroady beginning TO comc u more
rrely. bat our steel prices are much
uu lows to tempt foreign competition.
As for The future Of the market we
.rr Obliged 10 renew our advice of con-
or.atism ina financial commitments,
specially while the Mexican ana cur
enc, problems are 80 unsettled. Ia
.ufInpL Is .I.4V,p