Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-12-04
CLEV's MARKET LETTER

New York, Dec. 3:-1Ne are still in
reimbursement to changing economic, po-
litieal and social conditions. The econ-
omic changes are such as inevitably fol-
low q period of exceptional and world
wide industrial activity: while the pplit.
ical and social changes, particularly ~
the United States, are closely following
in the wake OF these developments. Al
though this process of readjustment has
gone far and deep. it cannot be sa'd TO
have completed its course; for there
are other changes yet to come. and more
OF less legislation OF an unsettlins char
acter must still be faced, however un-
welcome it may be. Nevertheless. there is
some compensation in the fact tnat 20
litical and social tendencies can now be
more clearly foreseen, and it must be
remembered that we are scarcely aver
free from public anxieties of more or
less Importance and that the ordinary
activities of the country cannot be per-
manently neld back. II is further CON-
pensation to know that while many of
the new legislative proposals are hostile
to capital and viewed with more or less
uneasiness. the tendency toward Ak
IRENE political radicalism is on the wane.
However, there is still much uncertainty
to warrant continued conservatism.
The Mexican problem appears to be
as crowded with uncertainty as ever
an6 we are still on rna edge of :. crisis
Whether his really means a beginning
Of the crumbling Of Huer.l's power or
not. events only can determine. Two i'm
portant points have definitely been set
tied: first. that American intervention
will only be an extreme resort. ana sec
ond, that the Great Powers are a unit
leo. The outlook at Washington for cur
rency legislation though mixed is not
entirely unfavOrable The surface pres.
poets, it is true, are somewhat confused
by political cross currents: yet her. is
strong undercurrent, backed by the
President, in favor of early action upon
this all-important question. AS rmn pro-
crosses. the objectional elements are be-
ing more and more eliminated from the
earlier proposals. and the outlook IS
months of 1914 Perhaps the most dis
appointing element in the business situa-
ton is the multiplying evidence Of trade
contraction. This is conspicuouly true IN
the East; the great steel industry. which
Is running about 60 per cent OF capacity.
leading in this respect Steel prices
have been much reduced and there have
been rumors of more extensive shut
downs. much, however, Of which is ex-
aggerated. The present depression ir
steel is too extreme to last, and later on
a rush OF orders is inevitable. In the
textile trades there has also been more
or less recession, and manufacturers are
embarrassed by the high cost Of raw ma
terials and the prospects of increased
competition In foreign goods under the
lower tariff. Our wooden industry in par
ticular feels this foreign competition.
So, too, will some of the finer grades of
cotton goods. The steel trade, however,
is comparatively Indifferent toward the
tariff, for the reason that neither Great
Britain nor Germany are able to meet
American prices under present condi-
tons. So far as general business is con-
cerned. it is good in the South, where
conditions are unusually sound. At the
West there are some complaints OF slack
ening business, but as aN rule the situa-
ton is much better than in the East,
where depression is much the keenest.
No lasting depression seems probable
here, because there is no overproduction
In any important line 81 industry. and
mills cannot shut down long without in
curing a serious shortage, which they
are OF likely to favor. The railroad sit.
uatiOn Is still unsatisfactory because of
shrinkage in traffic and declinig gross and
net earnings. A ray OF hope, however,
exists In the strong arguments which
are now being placed before the Inter-
state Commerce Commission for higher
rates. These claims are so convincing
and reasonable that it would seem Inn
possible for the authorities to any long.
er deny just compensation to the rail-
roads, unless the Commission deliberate
ly wishes to force the roads into Gov