The Washington times., 1909-09-05
DECREASED TRADE
AND BETTER TONE
lnduStrialS Attract More At
tention-Steel Common Set
ting a Lively Pace.

NEW YORK. Seut 5-Tbe conserva-
tive operator in secur ties viii 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 ac-
counts.
Perhaps the one feature of the mar
ket today is the trend towards adVanc-
ing prices in the in6ustrials and the dis
position on the part Of the street to sep
arate these stocks Crom the manipulated
rails. In this there is 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 larger earnings for the rail-
roads of the country.
But the advance in the leading rails
much more than discounted the better
ment OF their earnings and did II while
yet the industrials were slowly rising
This with reference to the. Hartman
| ST Paul. New York Central, Atlantic
Coast Line, Louisville and Nashville,
and a number of o-her rails, but not 20
the low-priced stocks, not to Great
Northern and Northern Pacific, which
have made Il point rises In nine months
where the leaders lave 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 lesseniug volume
of business. In the FIVE business days
Of last week the total sales were 3.lSS. $50
shsres-during the six sessions Of the
previous week the seles tOta'ed 5,649, 45o.
This return TO only reasonable activity
for the season is hopeful sign.
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 ls
| likely to be increased because or the
| poor cotton crop and the lack of wheat
| surplus for export. In this event we are
| likely TO become borrowers from abroad.
Other cereals will do their part TO add
/ 10 the wealth OF the country. The rail-
/ roads will probably have considerable
financing TO do and in one way OF an
other money for speculative purposes
may reasonably be expected to stiffen
materially. the cotton CTc0 has en-
countered a serious damage the con
dltion 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 liquidation in
stocks during the last two weeks in
August, the bank statement continues
TO snow reductions In deposits. and sur
plus reserve The last showing indi-
Gated 2. decrease Of moderate propor-
tions in loans, the first in months
The measure Of recovery In values
during the past week was decidedly
generous. averaging 3Is points I'm the
leaders, 5is In Union Pacific. and 2L03
! In the Hill shares. These latter Offer
opportunities for investment, safe and
sure.
Steel ComT:5n a Pet.
In the industrials. Steel common has
been well 10 the fore. indeed. il has
! assumed proportions Of leadership In
the general market. The friends OF
Steel common have come to the time
when they love 70 ooddle It. to talk
about its prospects, and TO predict as
/ 70 the time when II shall come into its
own and pass its big brother, the :
per cent preferred. And those who
/ should know. claim that their faith is
! well founded. This column has fre-
quently called attention TO TIE promise
/ Of Little Steel and at that all tho
! way up from 40 to the latest new high"
at S0-4. The gain last week was a.,
points, and demonstrated that there
should be no sympathetic movement
between Steel and Onion Pacific when
/ the latter Is being manipulated as IL
was between 200 and 2l9. Steel pre-
ferrec has actually reached the stage
wheye II IS traded ia only occasionally
One day during last week not a sale