The Washington herald., 1909-08-11

New York. Aug. 1O.-while trading in
the stock market was somewhat less ae-
tive to-day and prices moved in mar
rover groove. purchases, stimulated by
tile highly favorable character OF yester-
days government crop report were quite
sufficient TO absorb the heavy volume of
realizing sales.
Floor traders and others working for
lower prices on the old favorite theory
Of selling when good news is out en-
countered sturdy resistance. being able
to disclose no signs Of particular weak
ness in any one issue. and making no I'M
preston whatever on the market as a
whole
That the market thus upset a popular
theory or disclosed a popular fallacy, just
as It did after the signing OF the tariff
bill last week. was very likely due TO
much more than the crop reports effect
upon sentiment. FOR two important de-
velopments strongly corrobOrated the crop
report IN manifesting the great strength
OF the business situation and In disclOs-
Ing brilliant prospects for the future.
Copper Report Favorable.
porting for the month OF July, disclosed
n condition as Unexpectedly favorable as
the governments estimate Of the wheat
yield had been largely beyond previous
estimates.
In copper. the most generally accepted
estimate OF the report was that It would
show a decrease Of about 100000 pounds
In stocks Of the metal Ia this country.
The actual figures disclosed a decrease
/. OF S2OO0O0O pounds from the stocks on
hand July 1. and even more significant
IS the fact that deliveries for the domestic
consumption increased 100000 pounds.
as compared with an increase Of but l.
100000 IN production. Consumption is
thus running well in advance Of produc-
tion in this country; but the objection
has been raised that heavy exports
abroad, which In July were 1000 600
pounds greater than in the previous
month. had resulted IN an increase in
stocks abroad. balancing the decrease in
stocks here
Statistics available yesterday OF tho
copper stocks in Europe failed 20 sup
port this contention. showing, as they did,
an increase in European stocks 10 an
amount fully 100000 pounds less than
the aomunt OF the decrease here.
Consumption Leads Production.
Foreign and domestic consumption COM
bined were thus for the first time This
year well I'm advance of domestic and
foreign production. AS bearing on the
ratio Of Increase Of both domestic and
foreign consumption, It was also notice
able that deliveries in February. when
the demand was slackest, werc but "a
100000 pounds, while in July they were
l50,5o0.0C0 pounds or an increase Of ap-
proximately 100 per cent.
The other important though not so
generally considered. development Of the
day was a greatly increased demand
for money from merchants and manufac-
turers. Part OF this demand is seasonal
and part OF It due to the plans for ex-
pansion Of mercantile and manufac-
turing business following the enactment
OF the tariff bill, OF which there has
been indications before.
SIenufacturers' Demands Keen.
To-day the demand was particularly
keen from manufacturers, especially oi
the textiles. who have found an un-
expected great increase in orders since
the end Of tariff revision and are thus
impelled to make additions to their
plants.
The demand from manufacturers OF
cotton was particularly interesting a;
Justifying 10 some extent the prediction
that higher duties in certain grades OF
cotton goods would result in an immedi-
ate expansion Of the manufacturing
business
In the grain markets the Unexpectedly
favorable government report was again
reflected in a decline In wheat prices
bringing December wheat down to .;
cents at the close, and In st. Paul. Rock
Island preferred and some other granger
stocks there we're also indications that
the stock market effect Of the crop re-
port Is not yet thing Of the past.
There was made an engagement OF
100000 for shipment TO Japan. but
neither this shipment nor the brisk mer.
camille demand for money resulted In
an advance IN quoted rates The mer-
camille demand was supplied in large
part by interior banks, which seemed
still willing, Notwithstanding the expect
ed heavy demand for crop-moving "a
al