Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-08-05
These Act as a Restraint on Positive
Weakness of Values.
ORDERS FOR STEEL FALL OFF
N=ailroad Building Halts for Lack of
Funds.
HIGH INTEREST RATE PROBABLE
Demand for Money for New Enter
Drises SO Heavy Advance H. Ex-
peeted--Bond Dealers Report
Little Demand.

NEW YORK, Aug. 4.-Last week saw ev-
idences OF continued perplexity over the
financial and Industrial outlook reflected
in the action OF the securities market. The
immediate developments served TO weigh on
sentiment and induce a heavy undertone to
the speculation. although there was mix
ture OF favorable factors which acted as a
restraint on positive weakness.
The most notable of the latter class Of
incidents was the showing Of the United
States Steel corporation for the quarter
ending July 30 OF record net earnings Of
over ti5000.0O0, exceeding the most san
guine of the preliminary estimates. The
falling OF in the untitled orders on hand
from the preceding quarter was restricted
to a little over 10000 tons, and left that
item well in excess Of the figure at the
corresponding time last year. The period
covered was subs quent to the break in
March in the securities market, which was
the herald OF the reaction to come. the re-
port on its face might be regarded as
highly gratifying as an exhibit OF the mod
crate reaction to which general Industrial
activity !td been subjected. The large
sums made available and set aside for the
engagements and extensions in which the
corporation is engaged insured its immunity
also from the embarrassments from scanty
have been such a grave feature in the situ-
alton Of railroad corporations for some
time past. All OF this was practically
overborne. however by the frank acknowl-
edgment on behalf Of the corporation that
new orders received during July had fallen
25 to 30 per cent below those Of July last
year. This fact was accepted as conclusive
evidence Of the sharp setback to which the
iron and steel trade had been subjected as
a beIated effect Of the curtailment In en-
terprise which had been foreseen as soon
as the difficulties OF the railroads In secur-
ing capital for carrying out projects OF
petterment had developed.
Iron Trade barometer.
\ The financial community attaches drst
Importance to the iron and steel trade as a
barometer Of general trade conditions. The
condition of the copper market, which
comes probably next in Importance, rein
forces the example of the iron and steel
trade Copper prices abroad have con-
tinued to decline and the expected win
ter demand has not yet come in sufficient
volume to fix stable conditions in that
market. With this situation in the metal
trades, the influence is lessened or lost OF
the continuing reports OF activity In other
lines OF a trade. and the evidence in the
try of undiminished activity in mercan-
tile lines. This evidence OF sustained mer-
camille activity and the large requirements
on banking resources thus applied help to
complicate the outlook in the money mar
ket, from which relief is considered essen
tial to insure anw effective revival OF in
vestment demand of capital Contraction
of business activity. lowering Of prices,
accumulation Of capital and awakened flow
into investment Is the sequence Of events
considered necessary for the working out
of the situation.
British ConsoIs Are Low.
During the week British consols sold at
the lowest level since 1S4S. and the Incident
Il a central testimony TO the existing pros
tration of the investment situation. The
Immediate factor in the fall in eonsoIs
was the forced liquidation growing out OF
the over-extension on the Egyptian In
dustrial centers. Foreign money markets
and the reports of conditions of the great
central banks abroad give warning of the
coming pressure and the restrictions of
resources. 1t was only by rise in money
rates in New York that the French de-
mand for gold which inaugurated a gold
export movement from New York on Mon
day was avoided. Owing to the higher rates
foreign exchi nge market and placed the
proceeds In sans in New York.
NJ. Paul Leroy-Beaulieu. the distinguished
French econ mist, has registered his opin,
ion that opportunity for an advantageous
return on capital is now offered for the
tirst time In over twenty years past
Signs OF an investment demand from ac-
cumulating capital are looked for as the
true herald OF coming restoration In New
York the bond department Of the Stock
Exchange shows no stirring or activity and
the bond dealers are not able to report
any important absorption for demand In
vestment. The Incident OF the week, how
ever. was the sale by the Atchison. Topeka
a Santa Fe railroad TO ]. p Morgan &
Co OF the unsubserfbed portion OF the
S2aeo0.0o0 OF per cent convertible bonds
which had been offered 10 stockholders at
par. the residue thus sold being stated
at about tlsOOO.0O0 and the price to the
bankers supposed to be about ss The
transaction was regarded as evidence of
tae continued difficulty OF securing capital.
but the fact that the attempt was saved
from a failure was made the subject OF
professed qualification on the part Of the
VPfnrinala