The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-06-29
MARKET WEATHERS
!. CLAFL|N DISASTER
Financial District Undisturb-
ed by Serious Collapse of
Big Mercantile House.
BY HENRY ClEWS.

NEW YORK, June 29.-The shock
of the Clafiin disaster was we'll re-
sisted by the stock market and caused
much less disturbance in the financial
district than might have been eX-
pected from so serious a collapse.
What the Claf1in failure will mean to
the dry goods trade cannot yet be
predicted. Unavoidaby it must cause
much unsettlement and possibly some
liquidation in the distributing branches
of the dry goods trade. The failure
was plainly attributed to over-eXpan-
sion and to the difficulties of adjust
| ment to changing business conditions.
The H. B. Claflin Co. was jobbing
| concern. For some years past the
| jobbing trade of New York has been
steadily shrinking. owing to the ten
dency of the large retailers to buy
direct. The difficulties of the con-
Germ were also seriously aggravated
by the shifting currents of trade in
this great city, and especially by the
| business depression. 1t is to be hoped
that ur-well-intentioned legislators
will take a lesson from this failure,
and realize that there are limits to
what business can bear from sudden
radical changes. Not a few OF the
new laws and regulations are desir-
! able and even necessary, but they
| have come with too much of rush.
Largely owing to the fact that their
effect has been to impair initiative and
weaken confidence; thus precipitating
| incidents, such as the Claflin disaster,
which might otherwise have been
| aVerted.
Business Retrenches.
That there has been general re,
trenchment in business is beyond a
doubt. Last week bank clearings were
nearly 10 per cent less than year
ago; the decline being in the New Eng
land and Eastern states; and for the
five months of the calendar year the
decline has been over per cent
Gross railroad earnings showed loss
of II per cent for the month of May
and per cent for the first five months
of the current year. The number OF
idle cars is still abnormally large. The
present net surplus of cars is $4,000
compared with $4,000 year ago
Building operations are on much
smaller scale than usual; and the stag
nation of the steel trade is already
unpleasantly familiar.
There is good reason for believing
that the stock market has prett!
thoroughly discounted trade reaction
Security values nave been declining
with more or less regularity for more
than eighteen months. A partial re
covery has taken place, but stool
! market prices are still upon a low
and relatively substantial basis. Their
is little or no imitation or Over-expan
sion on the stock exchange.
Need Rest.
Among the most important event
of the week were several Suprem
Court decisions, the Inter-mountail
. decision being of chief significance
That decision while it clarified tn
situation as to the relations between
the government and the railroads, an
. while the latter will now be free O
state interference on interstate tra1
: fic, still the acknowledged constitl
tionality of the government fixing tn
rate was anything but welcome t
railroad managers. This is powe
, of portentous proportions. If wisel
used and in a spirit of fairness to a.
, interests, owners and shippers alike
4 it may be productive of much goo
and tend to conserve the stability @
railroad investments. If. on the Othe
hand, the power is used with prejudic
to either side, the consequences ma
be anything but desirable.