Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-06-04
BUSINESS SATISFACTORY
IN NEARLY EVERY RESPECT
Conditions Are Better Than Stock
Market Movements Seem to
Indicate.
is DUE TO WAR
Widespread Optimism Is Noted I'm
the Country, Mixed With Strong
Vein of CuutiOn-isank Clearings
Show Gain.


NEW YORK. June 3-Business con-
ditions are exceptionaily satisfactory
IN many respects. and much more
mat stock market. movements indicate.
There is some disposition To hesitate.
owing TO high prices. war and political
uncertainties also to closer scrutiny
Of credit. bu, this tendency thus far
has not become sufficiently pronounced
TO induce more than partial slowing
down of activity. which. taking all
things into consideration. was some
what desirable
The war created abnormal conditions
in certain directions. and there was
serious danger Of reckless expansion
and speculation unless some form OF
restraint WAS imposed. This developed
more cautionary spirit among those
who assume the initiative. Bankers
have become more discriminating and
merchants are careful not to overStock,
while manufacturers arc protecting
themselves against contingencies with
more than ordinary conservatism. In
consequence. there is widespread
optimism throughout the country mix
ell with a strong vein OF caution. This
healthy balance between these two
forces is of the best assurances
~ continued activity.
The prosperity Of the United states
has undouhtedly been greatly stimu
| lated by the war. especially in the East.
but this is only a transitory stimulus
| which will eventually bring its own
reaction: while far ahead OF II In per-
rnancni Importance is the better sort
Of prosperity based upon several years
of big crops, especially the harvest nf
1915. The American farmer never was
so well-to-do as to-day. and west OF
the AlleChenies this is still the vital
factor in business. notwithstanding the
rapid development Of industry and
trade in keeping win growth OF popu-
I lation.
nc GAIN NOTED
~ RAILROAD EARNINGS
Proof Of these statements is found in
current trade statistics. Bank clear
ings last week at leading cities were
- per cent ahead Of last year, very
large gain. even allowing for the ef-
feet OF high values. Railroad earnings
for April thus far reported show an
increase OF more than 80 per cent. New
capital Issues in May in the principal
states are estimated al about slsc.-
0oo."no. which was nearly double year
ago aud the largest May on record. cx
cept 1910.
\ feature worth noting is the flood
of municipal bond issues. the total for
the year 1919 being about $500. n00. 0o0
OF the largest total on record. still
another feature is the numerous new
petroleum issues. the total reported in
May alone being s1.000.O00 The re-
cord of new enterprises for May shows
particular activity. the total charters
OF concerns above Sl.ooo,ono capital
being S20a .ooo. 900. or ITO per cent above
the same month last year. Dividend
and interest payments in June cs
timated AT sl3,.n00oon, of $1,000. 900
more than last year. This increase
! was largely due to tho dividend OF So
100000 on United states Steel which
paid nothing year ago. Not a few
industrials could have paid larger
dividends. hut prudence dictated a con-
servation Of financial resources. such
as reduction of debt. improvement Of
plant and building up OF reserves. Dur
nE the pas; year 2l6 companies re-
ported profits of SISo.00n.000. or $3.50
10000 more than a year ago. the steel
companies showing an increase Of $751;
10000. the ammunition companies S66.-
100000. the copper concerns s43. 0o0.o 200
and petroleum companies s3S.00o.0o0.
! a year ago these companies earned
about 4 per cent capitalization, while
in tho year just ended they earned
/ more than IL per cent. Building opc-
! rations probably would be upon a
larger scale we're ii not for the high
cost Of materials and labor. which de
layed many new enterprises. The
railroads also are deferring their pur-
/ chascs for improvements and rolling
stock As much as possible for similar
reasons. The steel industry continues in
satisfactory condition and will he fully
employed for months TO come at prof
! table prices.
OUTLOOK For CROPS
ONLY DISCOIRAtISG FEATURE
The one important factor that is
not encouraging Is the crop outlook,
the season being back ward and with
out any bumper crops yet in sight. ON
the other hand. prices arc relatively
high and with The surplus left over
from last year. moderate crops will in
sure good prices for the farmer.
The stock market is laboring under
several adverse conditions. and unable.
therefore. to reflect the favorable bus
iness conditions referred to above. Chief
Of these obstacles are the presidential
campaign. tho war, our relations with
McNicn. the influx of securities from