The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-05-31
Little Chance For Improve
ment in Stock Market
At This Time.
OUTLOOK FAVORABLE
Tariff, Currency, Monetary
Situation and Crops Are
the Problems.
BY HENRY CLEWS.

NEW YORK, May 31.-There are
IoNr very important uncertainties, the
tariff question, the currency problem,
the monetary situation, and the crop
outlook, and until these begin to clear
there is little chance for any substan-
tial improvement in the stock market.
In addition to these uncertainties
there are several other problems also
of restraining nature, such as the
pressure of new issues, the attitude
of the government toward the rail-
roads, the Union and Southern Pacific
dissolution plans and the continued
warlike disturbances in southeastern
Europe.
=. :. Little Harm BY Tariff.
So far as the tariff is concerned, II
would seem as if this had been amply
discounted. The worst possible was
known several weeks ago, and the
chances now are that the extreme or
most injurious cuts will be modified in
THE senate, and that no serious harm
will be done to any important indus
TRY.
The proportion of damage would
certainly be small compared with the
nations aggregate industries, and it
must not be forgotten that lower tariff
rates will have compromising ad
yantages in other directions. AS soon
as the bill is passed there will prob
ably be a rush of orders, both domes-
tic and foreign, to fill the gap in mer-
chandise stocks caused by the hesita-
ton of the last seven months.
Outlook Encouraging.
So far as the currency problem is
concerned, the outlook is fairly en-
couraging. The outlines of new leg
islation are believed to provide for a
central regional reserve, for an elastic
currency, for Government representa-
ton in the Board and for rediscount-
ing commercial paper as well AS other
features. There Is a fair chance of
such a bill being passed by the House
as a party measure. Some doubt ex-
lists as to the senate which may or
may not delay the passabe of bill
until next winter. Mr.. Wilson, how
ever, is known to be anxious for
prompt action during this session of
Congress, if a satisfactory bill can be
enacted.
Policy Of Retrenchment.
So far as the monetary situation is
concerned, the outlook is more salts
factory, though one of caution. The
home and foreign credit situations
have not yet emerged from the con-
dition of excessive strain brought on
by the prolonged trade activity and
the Balkan war. Nevertheless, the
good effects are already being seen of
the policy of retrenchment which has
been persistently followed in Europe
and the United States for the past
month or six weeks. Reserves are
already beginning to rise at home and
abroad as result of this policy. In
other words, the curative process is
quietly progressing, but the outcome is
mot yet fully known. 1t remains to be
seen If the liquidation and retrench-
Fment recently enforced will expose
any unexpectedly weak spots. More
over, it is known that our banks are
not yet in position to finance large
bined next autumn.
The pressure of new capital appli-
cations has been enormous the world
over, and the comparative failure of
recent issues and the high returns de-
manded have checked the demand for
new capital. New issues in this mark
iet during May are expected to reach
about $150,000.000, against about
$1S0,000,000 a year ago, and number
of urgent issues have been delayed I'm.