The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-12-09
MARKET INCLINED TO RISE.
Incidents in Financial Phase harmful
to Business Interests,

to Business interests.
The market acts as though it want
cd To go up.
II is becoming more evident every
day that all the unfavorable develop
ments in sight have been discounted,
and that ii would not take a great
deal To attract considera bic buying. II
is unfortunate that with this tendency
all The developments of the week have
not been favorable but We cannot
sincerely say that they have. We al
lude To the foreign situation. The
chief requisite tor any decided general
Improvement has been for some time
evidence Of a freer banking situation.
Developments in France which have
at least postponed the state loan of
S260,OGO,OO0 were the most unfortunate
that could have occurred at this time.
Had this loan gone through and been
as well received as IT, probably would
have been, il would have done more
10 improve International banking SEN
timent than any other one thing. Ii
appears, moreover, that the absorptive
'Al'd'lAA III AspilhbIl mas btFll over
rated.
on the other hand, money is no
doubt. accommodating The Bank OF
England shows this. and the fact that
this country could ship S14. 1000 in
gold 10 Canada, at the same time that
ITS foreign credit balance is steadily
growing, is evidence that monetary
conditions are really not tight, in spite
of the fact that the New York banks
temporarily show Il deficit.
The presidents message, was. as
usual, without market influence, bur
its tone was rather reassuring. The
underlying motive seems To be an anx-
iety TO get things settled. To have the
necessary changes over as soon as pos
sible, SO that business men may know
whore they stand. This has been a
great deslderatum and the President
recognizes this is encouraging.
The developments on which the
market now waits are the currency
bill and the petition for increased
railroad rates. There is "A fair chance
thai the former viii be passed before
Christmas. This is good and we think
It's passage Will help the situation. Ii
is too bad that the railroad rate Ques-
ton cannot bee settled as quickly The
importance of this cannot he over
estimated. Two years ago when the
railroads petition for a 10 per cent
increase was refused, an attempt was
made 10 argue that this was really a
bull point, that the fact that the com
mission did not think an increase nee
essary showed i'm how strong Il posi-
lion it considered them 10 be- Time
has proven this argument fallacious,
ana while our natural inclination Is
rlWays 70 look on the bright side if
possible, We have no hesitation In say
ing plainly that in our opinion the de-
NAL Of the present petition would be
followed by very serious consequences.
This is indeed so general an opinion
that we can hardly think that the
petition viii be denied. and the cheer
ful part of II Is that the allowance
Of an increase would be fully as much
= bull point as it's denial would be a
bear point.
We think II should be noted that as
the first irritating bother OF collecting
the income tax passes away, IL be-
comes better understood, and its ef-
feet Is apparently to make people
mink. IL is coming 40 he realized
that not A dollar can be taken out of
government coffers-national, state or
City-that Is not first put there by
some one.
Money cannot long remain idle IL
u cannot be- used prohtably CONNER
cially, II will inevitably drift toward
the security market. There is a ten
dency 10 criticise this ~ an artificial
use of money. AS a matter Of fact, IL
Is merely the working out of one of the
economic functions Of the exchanges,
the natural accumulation In the most
profitable center of money that IL
gradually released from business In
this way, as business recedes, streams
of money go into a single reservoir and
n story Of financial energy is created.
whence the force comes, when liquida-
ton has run it's course. once more TO
revivify business and provide means
for act omplshing what has not been
previously possibly when the energy
had been too greatly dissipated.
We believe that some such process,