Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
BIG CROPS, BIG EARNINGS.
Enormous Output Of The Iron Fur
naceS This Year

naces This Year
FROM thoughtful article on the year in
finance and trade written by Frank D.
Root in the Independent the following OBJ
servauons regarding the prosperity of the
closing year are taken:
1hose who review the year will see that
first in Importance have been the crons
One great harvest has followed another
for the agricultural output of 1904 was de-
nclent only in wheat, while the yield of cot
ton was the greatest ever known This
years crop of cotton is probably a little in
excess of 100000 bales (instead of 10 300
o0o), but the higher price will give the
planter satisfactory profits. BY the Off
cal Hnal report the corn crop of 1905 was
2I07 $4,000 bushels, the greatest ever har-
vested and the yield in all the other kinds
OF grain mas been large. The benehcent
effect of this abundance will be felt
throughout the year to come.
Iron Output Doubled.
"a marvellous record has been made in
the iron and steel industry. Since 1857, the
iron output of the United States has been
doubled, and the quantity produced here
this year is equal to more than half of
the entire worlds output in 1904.
'Of course the report for December IL
not yet available, but 1t is known that at
the beginning of the month the weekly ca
paclty of furnaces in blast was 474 500 tons.
against capacity of 100000 on November
l, and in November more than 1850 ON0
tons were produced. In 1909 the worlds
output was A, SO4090 tons, the greater part
OF which was distributed as follows: United
States, 10 49I 033; Germany 9,944 26l: Great
Britain, $685., 65S; France, 2952. 3T7: Russia
2 ,S39 800; Belgium, / ,262, 5G6 Our output
this year will be about 22, 500 600
In the industrial and financial record
of 1905 there is nothing more important
than the great crops and this enormous
output of iron. Activity at the furnace and
the steel mill was stimulated by the rail-
road companies large orders for rails, cars,
etc, and the companies ability to buy was
due mainly to the crops.
Prices of Stocks Advance.
During the first quarter were seen the
beginnings of large additions to the prices
of what are called gilt-edged stocks. and
considerable rise OF the shares of southern
iron companies was caused by negotiations
for a consolidation of those corporations
Later, these negotiations were suspended,
to be renewed at the end of the year Rail-
roads sold large issues of bonds with ease
Half of a japanese loan of $150,G00,000 was
allotted to this country, and was heavily
oversubscribed in New York which eventu-
ally will be the chief money center of the
world. Part of another Japanese loan was
placed here IN December.
Demand for iron and steel was notice
ably strong in April and May. In each of
those months the furnace output was near
ly 100000 tons, and there was evidence
that substantially all of It went at once
into consumption.
Railway Earnings.
For the first half of the year gross rail-
way earnings showed an increase of about
sI0,0O0,000 July's official crop report in
Dictated 1925 GOO, coo bushels Of corn and
nearly 7o0,O00.000 bushels of wheat But
and speculation to be shown clearly by the
record. In that month buyers turned again
to the steel mills, and the iron OUTPUT be-
gan TO rise again. meeting demand so
great that in October the furnaces produced
the enormous quantity of 2,053, 127 TONS The
world was also buying copper, and the
rapidly advancing price of this metal was
to stimulate speculation in the Shares of
copper companies.
'In September ell conditions were favor
able Official reports on the 10th proved
that the country's crops were the largest
ever harvested General business had never
been better. On the railroads there was
congestion of freight Earnings showed con-
siderable Increases, even when compared
with the large totals of the corresponding
weeks In 1904. But, If stocks were to ad-
vance, they must contend against the re-
straining influence of high rates for money.
Money Tight.
'Stringency in the money market has
been prominent feature of the financial
history of 1905s closing months. At the
end of the first week in October the New
York clearing house banks surplus above
the required reserves was only $4,000 Coo.
A month later 1t had fallen to $3.50, 900,
and on November IL deficit of 81, 42S, 600
was shown, the first since September, 1902
On the next business day. therefore the
rate in New York for call loans rose, to %
per cent. But the reserves were speedily
replenished by severe contraction of loans,
and before the end of the month the sur
plus was 100000.
This lack OF money, however could not
prevent remarkable speculative rise in the
price Of some securities notably the shares
of coal roads and steel and copper COM
panies. In November, nearly 27t)0o OOo
shares Were sold on the New York ex-
change. and November's, clearings. for the
entire country, were the largest ever re-
ported in one month.
Money rates were high again IA peceua-