Jasper County Democrat, Volume 4, Number 15, Rensselaer, Jasper County, 20 July 1901 — COMMERCIAL AND FINANCIAL [ARTICLE+ILLUSTRATION]

COMMERCIAL AND FINANCIAL

The machinists' strike is fading out ia some cities, and' does not interfere seriously with business except Tho failure of the Amalgamated Association and the steel combine to reach an agreement at their recent conference is a more serious matter. It may have far-reaching I '- and disagreeable consequences, affecting the stock market as well as the iron and steel industries. As yet only sheet steel, steel hoop and tin plate mills are involved. The extension of the strike to all tho union plants controlled by the United States Steel Corporation will not merely decrease the earnings and depress the securities of that great- corporation, but will interfere seriously with manufacturers who look to it for their supply of raw materails. The business interests of the country will suffer if the conflict between capital aud labor which has begun shall spread beyond its present limits and be long continued. Speculative markets attracted great interest during the week. The growing apprehension over the. unpromising condition of crops in the Southwest was reflected in a sharp selling movement on the New York Stock Exchange. Other factors of great importance entered into the decline which characterized the trend of stock quotations during the .week. Foremost of these was the tightening of the market for money for speculative purposes. The threatened rate war between Western railroads, which uppeared likely to break out, has been averted. The roads have settled their differences and will “begin again’’ on a peace basis. Besides these influences on the surface was the evidence that the community of interest plan has not been rounded out to a sufficient degree to prevent ruptures between the large banking firms in New York which have been dictating the policy of the railroads. A vulnerable point in the community of interest principle is disclosed when the few Wall street interests now dominating the railroad situation of the country do not agree. Minority stockholders may be safeguarded against loss of their investments by rate wars, but the market values of their securities are apt to dwindle much more rapidly when financial magnates “fall out,” as a rumor of disturbed harmony between Messrs. Morgan and Rockefeller revealed last week. ___ ... In its general movements the New York stock market is a fairly accurate barometer of business conditions, even though it presents the extreme of every situation, but special conditions which govern stock market prices do not always affect the total business of the country in an appreciable measure. The harm to crops means severe loss to farmers in Kansas, Missouri, Oklahoma and’Texas, and perhaps in other States unless timely rains save the crops. Reports of eueh damages are almost invariably exaggerated, and the trouble is local in character. Still it means a decrease in railroad earnings. Money for commercial uses holds firm. The margin of loanable funds in the country has been absorbed steadily until it is nearly exhausted, and any abnormal demand would cause an instant tightening of rates. The outlook points to a higher money market. General mercantile business and manufacturing industries, other than those affected by the labor troubles which*have been referred to, show a steady gain.