Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-05-06
Easier Mexican Situation
Has Effect on Wall Street
Fear of Legislative Medding and Delay OF Interstate Com'
merce Commission in Rate Increase Petitions Still
p4%4 the Bette Noire

sible, improvements have been cur
tailed, and all of the companies are
spending no more for repairs and re.
plenishment than is necessary; q
policy which must be continued unless
the roads are allowed some compensa-
ton in the form of better rates.
Bio Deficit in Steel.
The stagnation in the steel trade
was emphasized by the last quarterly
report Of the Steel Corporation. which
Though not as bad as expected. SHOW
ed a deficit of $5,2S9,O0O after paying
the usual quarterly dividend Of l Ia
per cent, Since the railroads consume
about 40 per cent of the country's
steel product, and since building
throughout the country is dull, 1t Is
easy to understand the depression In
steel. The greatest hope lies In the
fact that depression is too deep to last
and that lower prices will sooner or
later stimulate the placing Of contracts
When the Turn really does come q
rush of orders will be inevitable.
Crop Outlook Hopeful.
There are two really encouraging
factors in the situation which have
temporarily been lost to view. Our
crop outlook is generally hopeful. This
is particularly true In regard to the
wheat crop, the prospect for which
from present appearances is a magni-
ficent yield of fully $1,000, 900. 900 bush.
els, which far exceeds any other crop
In our history. There Is also an
abundance of loanable funds at low
rates. Bank reserves are rising. and
the outlook is for prolonged ease. This
fact is not only favorable to the bet
ter class of investments. but cheap
money will be a powerful aid to buc
mess recovery once confidence is re.
store
Lack of Confidence DepIored.
Lack OF confidence today is the
main cause Of business depression. 1t
can be attributed to no other reason
than the constant attacks upon bust
ness by legislation, which absolutely
destroy all initiative. When the aver
age voter realizes what a large pro-
portion of the present depression and
lack OF employment is due to harmful
and hostile agitation he is quite like
ly to insist upon a change OF policy
on the part Of his political represent
tatives. One important advantage Of
an easy money market at this time
is that it materially facilitates the re-
financing Of the large current maturi-
ties, which r expected to reach over
$75;O0O.OO0 in the month of May. This
total includes $45,O0O,O0 of New Ha-
ven notes and $4,000, 900 Lake Shore
and Michigan Southern, all of which
have been provided for. When it is
remembered that the April maturities
were over $60,O00,000 and those for
March over 3, 1000, 600, not to speak
of the $65, 200, 900 New York City bond
issue and other municipal
issues, it will be seen that there is
considerable activity in the invest
ment markets, not directly reflected
in STOCK Exchange transactions. New
issues in April amounted tO about
$500, 100000, or nearly 100000, 900 in
exess of a year ago. The amount wa
large, made up of the Southern Paci-
fc, N. Y. Central, New Haven and
American Telephone issues, and indi.
Gates a fairly active market in good
investments.
General Outlook Unsatisfactory.
The general business outlook is not
satisfactory for reasons above men.
toned; the labor war in Colorado add
ing to the general distrust. Neverthe-
less, values on the Stock Exchange
have largely discounted these c0ndi-
tons; and many weak spots having
been thoroughly eliminated, there IS
little chance for further liquidation.
Stocks. have literally been well sold
out. A considerable short interest ex
lists; and any improvement in the
Mexican, political, railroad or bust
ness situation would undoubtedly be
reflected in better prices for securi.
ties. "