Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-05-28
SIGNS
SHOWN BY BUSINESS
Rise Seems to Have Been Overdone,
and Reactionary Tendencies
Are at Work.
CROPS ARE UNSATISFACTORY
War, Presidential Campaign and
Trade Conditions Create Cross
Currents ON Which 1t Is Impossi-
bic TO Expect Upward Movement.

l1
h'hcaht incentive to caution b,. 80.
'nc ih'e rise In commodities and waons
h'Ch mas so Increased the cost OF do
rs BUSINESS as to impose widespread
jnch upon new enterprise In brief
the rise seems to have been ovorans
Tor the time being at lens, ana s
o.onary tendencies already are al vort
ms ~ noticeable even in tho -.
a"e' which. though holding o-de,s
teh"inE into 1917. finds new do
ins,a iess urgent and prices in some
INSTANCES decidedly softer wben go
pared with conditions y month
new muntion orders arc. of co,,,
t,s Tess freely. and nigh costs ara
~ new construction work; while
La roads are combining their out
M to NECESSARY repienislment. In
nv "rection Is there any marknb 10
seiopfnent OF new railroad ,,o,,s,
non TACT which is som.,yba, r.m.r.
- IN view Of the much imnrovaa
| $40 OF anairs in the railroad wo-,d
l. the drns and chemical trade thern
~, "ec'hed reaction This large.
~ "i'ch forgotten. industry pro6ted
much by the war: the demand TO-
P"'NeS ana medical supplies r,us,r.
prices !or many articles 10 so,r CO.,
er"' hundred per cent. Nov that tbo
| s"c''oh IN on. prccIpitous declines have
aa,., causing more or less I'M.
| s:''ieiheht In the entire Industry -
me dry goods ard grocery trad.s
- ALSO Il SiackeninI of demand tbou,h
u" general weakness OF prices ana M
uhSetticment. In these lines
"u, mere ~ spirit OF confidence.
anu Nalues arc we'll maintained
outside Of war Influences ,ho 80,
situation IS the most unsatisy,c.o-
t"t"rc' NO serious damage is renor.
"o IN any section. but the spring has
bccn cold and wet: conseuuen,lv ,os.
81 INC cereal crops are backward and
J n tGtt
the other hand, all fruit crops are >ar
above tho average in condition. peaches
"hlch promise poor Weld being mo
only exception. Cotton is about TWO
weeks backward, but condition f. good
ana acreage. according 10 the National
flhhers Association estimate is near
! ~ - per cent larger than "a year ago
! a Few warm days will compensate for
! MI present drawbacks
HANK CLEARiNGS NOT SHOWING
SUCH BIG GAIN At PRESENT
| Bank cl"arings. though still running
/ over 40 per cent ahead OF last wear
arc not showing such big gains az in
! the first three or four months Of IN.
current year. Railroad earnings show
excellent results gross results report
ed in April thus far being more than
| 90 per cent ahead OF last year. April
net returns ar" also very satisfactory
III the latest reports OF Union Pacific
and Atchison are any criterion. Traf-
| nc on some OF tho Western lines has
been remarkably heavy. which doubt.
| less will he a factor favorable 20 an
easier adjustment OF the railroad labor
, problem.
: The net earnings OF American rail-
roads for the nine months ended March
! 81 were Ssao0oo.0oo. compared wiki
$3.50 10000 the same time last year. an
Increase of nearly $3.50. 900. Pros
perity such as this, II sustained. should
mean not only better wages TO rail-
road labor, but better returns to the
| stock holders. The noticeable public
hostility TO railroads also is disappear
ling. and these favora bile DEVELOPMENTS
undou cdiy would have been reflect
ed in "A more general advance in the
stock market had II not been for thu
pressure of foreign holdings of Ameri-
can stocks. The proposal OF the Brit
fish government for an additional tax
! OF 10 per cent upon American STOCKS
will stimulate foreign sales ana tend
to weaken this market.
The war has been less potent rae
tor in business and nnance IMAM t"F
many weeks. Peace rumors ?ers"''
The allies however. st!ll maintain ni-
willingness % consider any pronoSai'
nj this time. Peace is. OF course, d:a"
ing nearer but Is not yet in sight
Meanwhile, many of the industries al
fected on this side are beginning 10 au
Just themselves 10 prospective chaHses'
and munition or war shares IN some III
, stances alread? are discountnG peace
American railroads have hehchtco w
tie hy the war and consequently can
lose little by peace. the pressure "a
foreign holdings proba bly, "onid ec"sc'
however, before peace arrived. ana W
this respect American railroad s"",
would he strengthened by peace ue-
velopments.
. vi N
| ny AMERICAN INVESTORS
-. enormous quantity Of foreign
holdings has been absorbed o! Aitel
can investors, some estimates peihh
over billion. and the brinsh COY
ornnent through it's agents, has very
-sriufuuv avoided demoraliZing the
AMERICAN market or late sold has heeh
coming freely from the Bank OF Eng
land deposits in Canada. in part se'-
Element of our foreign trade balance
and more is expected To arrive. irea'
britain continues TO finance the war
with relative ease, considering the stu
nendous character of the undertaking,
and il is noticeable that the govern
ment proposes 10 issue three ana nVe-
wear cxcheuuer bonds. instead or
new war loan.
For the next few weeks the presi-
Dental election promises to assume its
propcr place in public attention. pro-
vidcd nothing serious enough TO over
shadow II occurs in the European war
zone. Both conventions occur In June.
and the country soon will be relieved
of all doubts AZ to both men and is
sues of the coming campa ign. Fortu-
nately, there are no domestic issues OF
an unusually exciting nature. unless it
he that of preparedness, concerning
which the country seems to be settling
down to sane and sober views
AT the moment there Is nothing on
which to base any vigorous, large
buying movements. Our present pros
perity has he >n considerably discount
ed. The advance in the stock market
last week was conspicuously met by
profit-takinE. Tn trade reactionary
movements are gaining In force, and
. these must to some extent affect the
security markets. The war. the ores
identiaI campaign. trade and crop con-
ditions combined have created q series
of cross-currents on which Il Ia inn
possible to expect any continued nm