Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-05-01
BY Henry CIews.

ARE an unsatisfactory money markt
and further signs of business reaction
Some easing of the money market
anticipated from the latter develop
'mcnt, and as bankers are pursuing
much more conservative course an
are partially restricting credit, the on
look is for relatively easier rates a
least until the harvest season begin,
The return of funds from the interio
has been delayed somewhat by the di:
position Of farmers to hold back crop:
it being ESTIMATED that fully % p
cent of the grain is still in farmers
hands. The present policy of bank
CrS, however, is to conserve their RI
sources and build up reserves and thi
ere long should result in improves
conditions. There is still some tall
Of stringency next autumn, but tina
contingency will hardly receive ser
ious consideration IT this time. More
over, there is reason to hope that rea
relief will be found in the passing 0
"A ley banking and currency bill a:
soon as the tariff is out of the way
The new administration is known tC
be in favor OF a bill which has been
drawn up by the banking and currency
Committee and which has in view the
establishment of reserve banks in Ger.
tain districts as well as the r%ediscOunt.
ing of paper and the purchase of bills
Of eXchan e. A central board, it is
understood, is contemplated which
shall control the various banks-this
board to fix rates of discount and to
distribute government deposits. The
reserves now held in the reserve city
banks would be distributed among the
regional banks. The present national
bank currency issued in its place by
TIE regional banks, based upon the
general assets of those institutions.
Provision for gradual refunding of the
. per cent bonus is anticipated and
the imprudent proposal of guarantee.
ing deposits has been eliminated.
to have met the approval of President
Wilson and his cabinet, and there is
GOOD reason for believing that the bill
will pass the house during the special
session Of congress and may be push
ed through the senate next winter If
10 serious disagreement develops re.
garding control Of the regional banks.
The Importance of securing the pass
age of this bill, which contains many
excellent features, cannot be too great
ly emphasized, particularly if We are
to provide against any possible, not
to say probable, emergencies. The
present Aldrich-Vreeland bill, which
was purely an emergency measure, ex-
pires in May, 1914, and there is no
time to lose if a new banking scheme
is to be launched and put into effect
before that time. Our business men
should keep W the pressure upon their
representatives at Washington for
early and adequate action.
The signs Of business reaction tho
course much aggravated by the pend
ing changes in the tariff. The number
and liabilities OF failures are increas-
ing; clearing house returns are report
ing smaller gains than a year ago
and railroad earnings are also making
less satisfactory comparisons, altho
this is partl' the effect of the recent
floods in the interior. In Germany
and England there are signs of bust
ness reaction, or a temporary slow
ing down after recent excessive activ-
ity. Germany is still feeling the eff
feCtS 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
thnlcss, there is no reason for any un-
easiness regarding the business situa-
ton. In all probability we are simply
in for a temporary period of slowing
down and possible readjustment 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 crumble
slowly and r%ecoveries proved only
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 complica-
tons in Europe. Some uneasiness was
caused by the Japanese-California cpl
sode, though this should not provoke
any serious international trouble. The
delay in the Hartman dissolution is a
distinct clog upon activity; while the
delay in the Minnesota case proved
to be the most encouraging develop
mcnt in the week, because it suggests
that the government may use its in
fluence to prevent: state rate legisla- I
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 Ha-
ven and the tiremen's arbitration de-
cision. The latter gave the firemen
advance in wages, which is taken
to indicate that similar concessions
will have to be made in other direc. !
tons not hitherto granted. Reductions
in several industrial dividends were
calculated to inspire confidence.
One of the most potent influences in
the stock market is the monetary sit
uation. New capital issues can only
be made at e%xorbitant rates of inter.
est, as shown by the St. Paul and 9th. |
err issues, which none but the favor
ably situated borrowers can afford.
This means a postponement of new
for capital until easier con-
ditions prevail. During the past two
weeks a number of imDOrtant issues