Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-06-18
CLEVs' MARKET LETTER

LLtWS mAkhtl L[IILh
New York, June 17.-So far as
transactions are concerned, the stock
market continues neglected. Never
theless the general tone exhibits a
healthy and hardening tendency. Pric-
es have now undergone a very slow
and gradual advance OF about 3 to 4
points, which naturally induces soma
realizing by timid -olders; but apart
from desultory selling of this sort
there is practically no Offering of
stocks. The market appears to be
thoroughly sold out. Liquidation has
been prolonged and thorough; so that
weak spots have been practically elm
mated. Psychologically, to use an
over-worked expression, the situation
is improving. There is less appre-
hension and more confidence than a
month ago. The Clayton antitrust
bill, is likely to pass, but in a mater
tally modified form before it emerges
from the Senate.
Uncertainty Disappearing.
Then uncertainty growing out of law
making will disappear and business
will have a chance to adjust itself to
known conditions. Congress, after a
pheaomenally long period of activity,
is beginning to be really anxious for
adjournment. Hot weather and the
vacation period are fast approaching.
The past two summers have been ex-
ceedingly strenuous one in Washing
ton; and the Administration, having
accomplished far mora than was ex-
pected in the direction of tariff, bank
ing and antitrust reforms, can afford
to rest satisfied on it's record Of
fulfilled promises. Reports are cur
rent that the Interstate Commission
will shortly render its rate decision,
and that the roads will be allowed
some concessions. The Supreme
Court decisions of the week were also
of a satisfactory nature; the most i'm
portant being that which asserts the
supremacy of national control of inter
state commerce rates as against state
control. In other words, as the Court
correctly said, the railroads need a
single master, not many. This is an
encouraging development; inasmuch
as it will relieve the railroads of
many Of their perplexities, and prob-
ably insure them more just treatment
than has been accorded. in the past
under State regulation, which has too
often been of a confiscatory tendency.
Money Easier.
Another element which has aided
confidence on this side of the Missls-
sippi has been the prevailing ease in
money. No better business tonic can
be found than an abundance of cheap
money available to those having good
credit. It is possible however that
the period of abnormally cheap mon
ey is nearing an end. Europe has
already taken over $5O,0O0,00O of gold
from this country since the first Of
January, and the outward movement
has not yet ended. This weeks ship
ments alone amounted to over S17,0O0,.
0OO-a record wsek. Apparently for
eig1 demands are still unsatisfied and,
low money rates here facilitate with.
drawals. Moreover, Jul merchandise
imports continue to increase while ex-
ports diminish; and since Europe
shows no present disposition to buy
u securities, the balance against us
thus created can only be settled by
gold shipments. Fortunately we have
an ample supply of the precious metal
which is always being augmented by
home production; and the outward
movement as a Whole has by no
means been injurious and should
no uneasiness; especially as it
will materially help the situation
abroad. Furthermore, the early open
ing of the reserve banks will facilitate
credit operations and make US less de-
pendent upon III gold supply. Very
shortly crop demands will begin to
assert themselves; and should the
the volume of business increase. as
seems not unlikely, the demand for
money will expand and rates may
somewhat harden. No stringency
however is in sight, and for thu time
being nothing further is anticipated
than a check upon exceptional ease.
Business Looks Good.
The general business situation out.
look is promising. Supplies OF
merchandise of nearly all kinds are
unquestionably light because of the
slowing down which recent appre.
tensions necessitated. With the re.
covery of confidence and with the
promise of a good harvest, increased
activity is only a matter of a few
weeks. It must be remembered that
industrial production has been abnor.
mally restrained for several months.
The steel trade for instance has been
running for weeks on 60 per cent of
capacity; largely because of enforced
railroad retrenchment which cannot
be Indefinitely prolonged. The rail-
roads will soon be compelled to enter
the market more freely, and with the
assurance Of good crops and better
wages will undoubtedly place some
liberal equipment orders. In fact it
would cause nc surprise if the steel
industry were to show one of it's Gus.
tomary sharp rebounds before the end