The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-08-05
FINANCIAL OUTLOOK
RATHER PERPLEX|NG
IRON AND STEEL TRADE TAKEN
AS A BAROMETER OF GEN.
ERAL CONDITIONS.
(By the Associated Press.)

NEW YORK, Aug. 4.-LaSt week
saw continued perpleXity over the
financial outlook reflected in the ac-
ton of the securities market. The
immediate improvements served To
weigh on sentiment and induce d
heavy undertone to the speculation,
although there was a mixture of ia.
vorabe actor switch acted as a re-
straint on positive weakness.
The most notable of the latter
class of incidents was the showing of
the United States Steel corpora lion
for the quarter ending July 81, of
record net earnings of over $45, ,000,-
900, exceeding the most sanguine
preliminary estimates. The large
sums made available and set aside
for the enlargements and extension
in which the corporation is engaged
secured its immunity also from the
embarrassments of the scanty avail
able capital and generous interest
charges which have been such a
grave feature in the situation of rail
road corporations for some time past.
All of this was practically overbOrne,
however, by the frank acknowledge
nlent on behalf of the corporation
that the new orders received during
July had fallen 25 to 80 per cent be-
low those of july last year. This
fact was accepted as conclusive evil
dence of the sharp setback to which
the iron and steel trade had been
subjected and belated efforts to help
the enterprise, which had been fore
seen, as soon as the difficulties of
the railroads in securing capital for
carrying out projects of betterment
was developed. The financial COM
munity attaches far more importance
to the iron and steel trade as bar
ometer of general trade conditions.
The general condition of the copper
market which comes probably next in
importance, reinforces the example
of the iron and steel trades. Copper
prices abroad have continued to de-
cline, and the expected waiting de-
mand has not yet come in sufficient
volume to fix stable conditions in
that market.
The evidence of sustained mer-
camille activity and the large re-
quirements on banking resources
thus applied, help to cOmplicate the
outlook in the money market, from
which relief is considered essential
to insure any effective revival of in
vestment demand of capital. Con-
traction of business activity, lower
ing of prices, accumulation of capi-
tai and awakened flow into invest
ment is the sequence of events, con-
sidered necessary for the working
out of the situation.
During the week British consols
sold at the lowest level since 1S48
and the incident is strong testi-
mony to the existing prOstration of
the investment situation. The imme-
diate factor in the fall in consols
was the forced liquidation growing
over extension of dullness in the in
dustrial situation.
The foreign money markets gave
evidence of the coming stringency.
1t was only by a rise in money rates
in New York that the French demand
for gold, which inaugurated new
export movement from New York on
Monday, was avoided. At the high
er interest rates here bankers ne
gotiated finance bills through the
foreign exchange market and placed
the proceeds in loans in New York
Paul Leroy-Bealieu, the distin-
guished French economist, has regis
tered his opinion that an Opportu-
nifty of an advantageous return on
capital is now offered for the first
time in over twenty years past.
Signs of an investment demand
from accumulating capital are look.
ed for as the true herald of coming
restoration In New York the bond
department of the stock exchange