The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-04-28
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

many and England there are signs OF
business reaction, or temporary slow
ing down after recent excessive &C
tivity. Germany is still feeling the
effects of the Balkan war, while Eng
land Is beginning to realize that the
development of her Colonies, partic-
ularly Canada, has been going on at a
rate that demands caution. Never
theless. there is no reason for any
uneasiness regarding the business sit
simply in for a temporary period OF
uation. In all probability we are
simply in for temporary period OF
slowing down and possible readjust,
ment to a lower price level generally,
especially for commodities.
On the Stock Exchange the move,
ment has been distinctly disappoint
ing. Prices have continued to crum
Bile slowly and recoveries proved only
temporary and were usually based up
on short covering. Fresh liquidation
was started by the capture Of Scutari
! by Montenegro and the fear that this
event may lead to further compiled
| ton in Europe. Some uncasiness was
caused by the Japanese-California ep
isode, though this should not provoke
any serious international trouble. The
delay in the Hartman dissolution is
distinct clog upon activity; while
the delay in the Minnesota case prov
| ed to be the most encouraging develop
ment in the week because 1t suggests
that the Government may use its in
fuence to prevent State rate legisla
ton from disorganizing rail rates out
side of it's own boundaries. Other un
| favorable developments to the stock
market were the weakness in New
Haven and the firemen's arbitration
decision. The latter gave the f1remer
an advance in wages, which is taker
to indicate that similar concessions
will have to be made in other direc
tions not hitherto granted. Reduc
tons in several industrial dividends
were hardly calculated to inspire con
fdence.
! One of the most potent influences
in the stock market is the monetary
situation. New Capital issues can only
be made at exorbitant rates of inter
est, as shown by the st. Paul ant
other issues, which none but the fav
orably situated borrowers can afford
This means postponement of new
application for capital until easier con
ditions prevail During the past tive
weeks a number of important issue:
have been offered, but only at un
expectedly high rates. OF course th|
consequent delay in these contemplat
ed enterprises will tend to lessen thu
activity in business. 1t will probabl.
affect the steel trade more directl.
than any other industry, although tbs
steel mills of the country are occupied
with orders that will keep them bus!
for months. Many Of the worst fea
lures have been more or less dis
counted, and as soon as the readjust
ments to the new tariff and to none
tary conditions are completed we ma:
confidently look for better times
Orders which have been held bacl
and accumulated will come FORWARD
and business will then doubtless re
sumo greater activity. Fortunatel
crop prospects are excellent and
good harvest will do much toward
offsetting present unsatisfactory cor
ditions There has of late been
good deal of quiet absorption OF tn
best class of securities by investors
and this class of conservative buyin
is likely to continue.