Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-10-07
Henri CZe,Us on Conditions

The report of Henry CleWs for the week ehuile
last Saturday, while optimistic, is cautlonary. re
claims that while some interests may be ahected Dy
the new tariff bill, yet it will not be serious and
matters will adjust themselves to the new condl'
tons.
He says our monetary situation also shows lttle
change. There is still a very strong cautionary spirit
in banking circles at home and abroad; and the fear
Of an autumnal crisis, though diminishing, has not
entirely passed away. In the United States the still
alton has Enthusiastically been much relieved by the
treasury offer, about half Of the promised $50,oo0,oOo
government deposits having already reached the
banks. The full requirements for crop and fall trade
have not yet been met, and these may be expected
to expand for some weeks to come. NeVertheless,
our banks are in a more comfortable position thah
expected, and this particular element Of distrust is
gradually disappearing.
The money situation abroad, however, is less
favorable. This was emphasized by the advance in
the Bank of England discount rate to > per cent,
which was evidently intended to check exports OF
gold to America. India and Egypt have already alb
sorbed large sums recently. Europe has not yet
recovered from the strain of the Balkan war. Both
France and Germany, as we'll as some other countries,
are piling up big war chests. which not only impose
a strain upon financial resources, but also create more
or less continued though suppressed uneasiness in
banking circles. The October settlements in Paris,
which were regarded with some apprehension, for
tunately passed off without disturbances; but the
European situation, just referred to, illustrates the
worldwide s%tringency of money from which there is
no important relief yet in sight. The prospects OF
our importing gold this fall or winter are somewhat
uncertain. In addition to the decided unwillingness
of Europe to part with the precious metal, the future
of our foreign trade is involved in some uncertainty,
owing to the new tariff. It is impossible to forecast
h fyt,,ro M ip,por+c uuIo, tho dutiac IN all
probability our purchases abroad will be materially
Increased, a fact that will tend to keep down our.
customary excess OF exports. The United States,
however, has a large stock of gold, and as We are
aalso large producers, there is no particular reason,
for concern in this respect.
General trade shows some signs Of -recuperation,
but no special activity. There is more cheerfulness
among distributors than sbecauses the
f%etrher are less hampered by tariff and general indus
trial, problems than the latter. The mercantile classes 4
as a rule are more free of such difficulties and they
anticipate a. good distribution of goods for the reason
that stocks are small and the ~consumptive demand
for necessaries continues undated. Manufacturers
: affected by the tariff are taking the situation more
c~heerfully. 1t is acknowledged that some damage
may be inflicted by the new rates; but confidence in
American ability to face the new conditions and meet
foreign competition is asserting itself. 1t is safe to
say that the ill effects of the new tariff have been
fully discounted; and that, while it's results will have
to be worked out, the restraint from paralyzing I'M
certainty is now practically over. There has been
some slackening of orders for steel products, due to
a spirit of caution, but the leaders of this industry
: feel quite confident of the ability of American steel
mills to fully hold their own. The same is true of
our cotton manufacturers, who also take a more
cheerful view of the outlook than they did six months
ago. The wooden mills will probably feel the ne,>
schedules more severely than any other. The prog.
ress of the currency bill has been slow; and the
tendency towards further. government interference
with business affairs at-Washington exercises a re-
straining. If not discouraging, effect upon enterprise
in general. Many Of the new political ideas are dis.
tinctly discouraging to business initiative; the latest
example being the proposal to take over the tele.
graph and telephone, for which there is no valid
reason. The service is already much better than
could be supplied by any government.
Values on the stock exchange have declined under
continued bearish attacks, which were encouraged by
the facts referred to above; also by the poor net
results shown in the last monthly reports of the
Pennsylvania, New York Central, New Haven and
several other large railroad systems, Such results