Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-06-10
CLEWs' MARKET LETTER

New York, June T.-The stock mar
ket continues to struggle against a
number of adverse conditions. In
sole quarters there is a disposition to
attribute the present unsatisfactory
state Of business and financet o i'm
aginery or psychological" conditions.
Quite possibly there is exaggeration
in certain quarters for political ef-
feet. This is a weakness of which
both sides are often guilty. The facts
are that business is spotty, and more
depressed in some sections and in
dustries than in others. Diminished
bank clearings prove this statement
conclusively. So does the increase of
liabilities in business failures shown
for lanst month. The actual shrink
age in business is not large, but is
nevertheless larger than it need be.
1t is larger in the East where manu-
featuring interests predominant and
smaller in the West where good crop
conditions are the chief factor. BUS
mess initiative in the East has been
very seriously impaired. This is
demonstrated by the fact that new
corporations reported in the principal
States in May were only $62, 900, 900,
against $172, 900 900 a year ago.; while
the total for the first five months Of
the current year amounted to only
$42S, OO0, 900, compared with 1,O6O,.
900 900 the previous year. The mean.
ing of these figures is that capital
dare not make new ventures very
largely because Of the hostile atti.
tule at Washington. This in turn
means that trade is falling below its
natural volume, and that many per.
sons are thrown out of employment
who otherwise would be working full
time. Call this a Estate of mind" il
you will. Any individual is naturally
disturbed when he finds the founda.
ton of his avocation being destroyed.
That certainly is a state of mind with
a substantial cause behind it. So,
too, there are cause for the present
psychological conditions of bust.
ness. There is a worldwide econom-
ic reaction, which partly accounts for
the present depression. But all we'll
informed men, particularly those who
have to u responsibility, are
much alive to the fact that our poll.
ticians are very seriously aggravating
instead of relieving depression.
Among the influences which at pres.
ent are reterrent are the investiga.
tons by the Interstate Commerce
Commission; the delay in the rate
cases: the new antitrust bills, and
fresh uncertainties as to railroad reg
uaition and the issue of new securi.
ties. The market has also been un.
der the Influence of Mexican posi-.
b~ilities, and a poor government cot
ton report; although in the cotton
trade the feeling prevails that the
latter somewhat exaggerated the fall
of condition in the month of May.
During the week there has how.
ever been a disposition to take hope
full views of the future. It is recog-
nized that many of the unfavorable
conditions have been largely dis
counted, and that the financial situa.
ton has been materially strengthen.
ed by persistent liquidation. The
present contraction in certain lines
of industry, it is let, cannot continue
indefinitely. ECONOMY has in some
cases been pushed to the starvation
point. Our railroads must inevitably
soon come INTO the market for rails,
equipment and general replenishment,
Of only to keep their plant up to ne.
cessary standards and within the
lines of sound and safe management.
Contraction in the steel trade upon
the present scale for any great length
of time is impossible. In other lines
! of industry supplies of merchandise