The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-05-19

NEW YORK, May 19.-Noth-
ing has occurred to break Stock Elk
change apathy, the market showing
ences. About the only change that
could be discovered was a moderate
abatement of the pessimistic feeling
which has SO long dominated this mar
ket. This suggests the question, has
| the present wave of depression about
| exhausted itself, or is it likely to con-
tinue much longer? The most i'm
/ pOrtant factor in the decline, which
began last November, or nearly seven
months ago, was money, the rise of
which was attributed to the Balkan
war and to excessive demands for cap
| ital. Now that the war is over, money
should return to more normal condi-
tions, unless prevented by the strain
upon credit and the accumulation of
new f1otatiOns arising from necessary
payment of war debts and postpone
ment of new issues. The great for
| eign banks have partially succeeded
1 strengthening themselves, and con-
, iderable assistance has been rendered
by recent gold exports from the Unit
ed States; but the evident financial
strain at Berlin and the unsatisfac-
i tory tone shown at London and Paris
are suggestive of further caution at
those centers.
| The banking situation at home is
slowly improving. Bankers have been
pursuing a much more conservative
course during the last few weeks.
Loans and collateral have been care
fully scrutinized, and more or less liq-
uidation in both securities and mer-
| chandise has followed. AS a result,
bank reserves are beginning to rise
and a slightly better feeling is devel-
oping in banking circles, particularly
in the West. Pessimism is still strong
est in New York and other Eastern
points. This is because all depress-
ing factors tend to concentrate at
these points. The East not only feels fl
nancial pressure more keenly than the
West, but it has also had to contend
against tariff, labor and political trou-
bles which bear more directly upon
Eastern business conditions than up
on the interior. The West is compar-
atiely free of these difficulties, and
a good crop outlook and larger oppor-
tunities for development of natural
resources. New England has been
particularly depressed by proposed
tariff legislation, and the heavy de-
clines in some of her best securities
which are widely held throughout the
New England Substantially New
Haven, Boston and Maine, and many
cotton and wooden mill shares.
The home monetary situation ap-
pears to be gradually righting itself
1t is true that dear money usually
means cheap stocks, but securities
are now selling upon a very low ba
sis, even allowing for any possible re
duction of dividends. The bond mar
ket shows more settled conditions
although much depends upon the sue
cess of the New York City issue dur
ing this week. Should that prove
successful, it will have an important
bearing upon other issues which have
been held back for more settled con
ditions. These bonds cannot be plac
ed below par, but should they drag
when offered, the effect would be de
trimental. 1t seems to be accepted
that capital is going to insist upor
better terms, and prices of many is
sues have already largely adjusted
themselves to this conviction. Wha,
effect other factors will have upor
values remains to be seen.
General trade continues compare
lively quiet. The steel industry re
ports a slackening of orders, which
was to be expected in view of de
clining real estate operations and tn.
inability of the railroads to raise suf
ficient new capital to carry on i'm