The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-09-05
DECREASED TRADE
AND BETTER TONE
InduStrialS Attract More At
tention-Steel Common Set
ting a Lively Pace.

NEW YORK, Sept. 5.-The conserva-
tive operator in securities will go slow,
protecting his trades with good mar
gins but the investor will probably find
that returns at present values will he
satisfactorily. At the same time The
stock situation is not entirely inviting,
although the atmosphere was greatly
cleared by the big slump, engineered by
the liquidation Of many market leaders
and the enforced closing Of many &C
counts.
Perhaps the one feature Of the mar
l0et today is the trend towards advanc-
ing prices In the industrials and the dis
position on the part Of the street TO sep
arate these stocks from +l-- ---srIpulated
rails. In this there il recognition OF the
great Improvement that has taken place
in the iron and steel business a really
wonderful recovery from the intense de-
preston of two years ago But there
has been as great betterment in general
business and this should, will. and has
made much arger earnings for the rail-
roads OF the country
But the advance in the leading rails
much more than discounted the better
ment o. their earnings and did IL while
yet the industrials were slowly rising
This with reference TO the Hartman
shares. New York Central, Reading,
St. Paul, New York Central, Atlantic
Coast LinS, Louisville and Nashville,
and a number of other rails, hut not 10
the low-pI iced stocks, not to Great
Northern and Northern Pacific, which
have made y point rises in nine months
where the leaders have scored several
times this gain in as many weeks
sometimes days.
Trading Scaling Down.
A favorable feature Of the situation
is also found in the lessenine volume
of business IN the five business days
Of 1oc q l. 4 !, loo =
shares-during the six sessions Of the
previous week the sales totaIed 5,649, 450
This return to only reason Die activity
for the season is a hopeful gn.
The great Improvement in general
business has naturally called for much
money. The movement Of the crops is
| demanding cash assistance. The trade
| balance against the United States -
| likely TO be increased because OF The
poor cotton crop and the lack Of wheat
/ surplus for export. In tits event we are
likely TO become borrowers from abroad.
other cereals will do their part to add
| to the wealth OF the country. The rail-
roads VIII probably have considerable
financing 10 do and in one way or an
other money for speculative purposes
may reasonably be expected 10 stiffen
materially. The cotton crop has en-
countered a serious damage. the con-
ditiOn being about the poorest on record.
With the great shortage in crop there
must be higher prices before the crop is
marketed
Bank Reserve Decreasing.
Despite the enormous liouidation in
stocks during the last two weeks IN
August, the bank statement continues
10 show reductions IN deposits. and sur
plus reserve. The last showing indi-
Gated decrease Of moderate proper
tons in loans, the frs in months
The measure Of recovery I'm values
during the past week was decidedly
generous. ayera ging 50 points i'm the
leaders. Us In Union Pacific. and 2LO3
IN the Hill shares These latter offer
opportunities for investment, safe and
sure.
Steel Common a Pet.
In the industrials, Steel common has
been well 10 the fore. indeed, it has
| assumed proportions OF leadership IN
the general market. The friends OF
Steel common have come to the time
when they love TO coddle II; 10 talk
about fits prospects. and &c predict as
10 the time when II 5Sall come into it's
own and pass its big brother, the Z
per cent preferred nd those who
should know. claim that their faith is
well founded. This column has fro
quently called attention % the promise
Of Little Steel and at that All tho
way up from 80 10 the latest new high"
at s0lz. The gain last week was a.,
points, and demonstrated that there
should be no sympathetic movement
between Steel and Union Pacific. when
the latter Is being manipulated. as IL
was between 200 and 2l9. Steel pre-
I ferred has actually reached the stage
where II IS traded in only> casionally.
One day during last week not a sale