Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-07-07
CLExS' MARKET Letter

Market seems on the verge o
awakening from it's lethargic sleep
and this In spite Of the many un'
favorable factors which still remain
Evidently these have been literally
discounted. Such shocks az the
Claflin failure, the assassination Of
Archduke Francis Ferdinand and
fresh railroad r~eceiverships are al.
NOSE ignored. sFor some time past 1t
has been self.evideat that this mark.
ct was thoroughly sold out after
nearly twenty months Of steady
liquidation. It's technical position, as
has been frequently pointed out, is
steadily improving; and only some
developments Of a convincing and
promising nature are needed to in
fuse fresh life and hope into the To-
cal market. In some circles the &C.
casional strength of the market was
credited to a%nticipations Of a favor
able rate decision. This, however,
was pure guesswork, as the dictum
OF the Commission has been further
delayed and their opinion as q body
Is still kept In perfect secrecy. There
is a good reason to hope for at least
a moderately favorable decision,
simply because of the justice Of the
claims Of the railroads. But on the
other hand tn Commission is appar-
emily abody, lacking probably sufi-
lent practical experience, hence slow
and %hesitating in vastly important
far-reaching decisions such as now
connected with the railroads, as they
are still under a fire of severe criti-
cfsm for misdeeds and extravagances
that are now q matter Of history. In
any event the Commission is obliged
to move cautiously in the matter of
rates, the regulation Of which is a
task OF tremendous magnitude, only
appreciated by those intimate with
railroad management. Consequently
1t would be safer not to expect any
very liberal concessions to the trans.
portati01 companies at the start, but
but rather an opportunity for the lat
ter to further demonstrate their need
by first ~effecting all practical econ
omy and then waiting to learn the
effect Of al improvement Of business,
which is now more confidently ex.
pected. The position of the rail-
roads was well described recently in
these words: ''The private individ-
ual furnishes all the cash, the Gov
eminent does all the regulating and
the owner carries all the responsible
ity.' Certainly the Interstate Com
merce Commission has been given
powers never before equalled in
history.
Business Helps Railroads.
The railroads. are likely to get
more real help from business i'm.
provement than from any conces-
sions through the Interstate Com.
merce Commission. The splendid
outlook for nearly all crops through.
out the West and on the Pacific
Coast ia by. far The most encouraging
element in the whole situation. Here
Is genuine wealth newly created. Our
wheat crop is simply phenomenal,
and promises with its yield of over
9O0,O00,O00 bushels to add fully
500, 100000 of new wealth within
the next few weeks. the harvest be-
ing already advanced. Our railroads
are already bringing out idle cars for
the purpose of marketing this vast
crop. Bankers and merchants in the
grain belt are exceedingly optimistic,
knowing full we'll that the. farmers
with we'll filled Golfers will be free
spenders. The big jobbing houses of
the West are openly confident. The
agricultural implement concerns are
looking forward to a good business
and a free payment Of farmers loans
which had been accommodating. Low
priced automobile concerns are also
expecting large sales to the farmers.
The fruit crop is good in almost all
sections, and the corn crop is pro.
crossing satisfactorily under favor
able conditions, in spite of the alb
sence of warm weather. Current es-
Inmates are for q crop of 1900, 900.
600 bushels, which would be the larg-
est crop on record except that of
1912 which amounted to 3,124,O 900.
0O0. The only important crop not
doing really we'll "a cotton, the con-
dition of which was reported at 1876
against 81.8 last year, but the acre.
age Is large, 36,90O,000, having been
exceeded but once, last year, and the
latest advices say the crop is now
growing we'll. Allowing for the de.
~terioratio1 in July and August, there
is still time for more than average
crops Of both cotton and corn, and
the agricultural outlook as a whole
is n that affords the soundest avail.
able basis for encouragement. One
good authority estimates that our
agricultural products this year, in.
Guiding animals, will probably reach
II or IL billion dollars, compared
with 10 billions last year.
Cheap Money.
Next to the crops the best sun.
porting influence is cheap money.
Funds are abundant for all sound
purposes. There may be some clos
er scrutiny Of commercial credit re.
sulting from the Claflin failure, but
trade conditions generally are sound
and good borrowers will find no diff
ficulty in securing all the accomoda.
ton which they. may need. Further
assurance regarding the money
market has been guaranteed by Sec
rotary McAdoo,s prudent offer to
give such assistance through the re-.
lease of the Treasury funds for NOV.
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