The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-11-01
Tendency of the Market Is
Toward improvement.
MONEY SITUATION IS BETTER
Statement of steel Trust for Last
Quarter Exceptionally Good, All
Things Considered - Railroads 10
Make Large Investments in the
Next Yenr-Upward Move I'm Cotton.


news point Of view was as dull as any
that has been seen IN several months
Nevertheless, the course OF events was
undeniably such as to put the general
stock market and financial position in
stronger shape. The backing and filling
movement that has been going on in
security prices ever since the first Of the
month has had the effect. or, at least,
did have the effect up TO the beginning
Of the week. OF getting together a pretty
numerous bear" party on the stock eX-
change. composed mostly OF professional
room traders and the like, whose in
variable method Of Judging the security
market Is that II prices win not 80 up
they must go down, or II they will not
80 down they must go up.
Inaction in the stock market IS some
thing that operators OF this class never
understand. and from which they not IN
frequently draw misleading differences.
When, therefore, the market halted three
weeks ago out OF Difference TO the money
situation many habitual spectators be-
gan 70 freely sell stocks for the decline
upon the theory that inasmuch as the ad-
vance I'm prices had been checked. the
market could not be expected to maintain
itself at the existing level, and that its
next move would be toward a decidedly
lower level
Decline Not Serious.
But the market did not act in the way
thus outlined for IT, Il did decline
moderately, but after a little fall began
TO uncover buying orders. Then It re-
covered, largely, perhaps, upon retreat
OF the short interest and again feu
nearly TO the low point previously
touched. This second decline was, how
ever. as has been stated. not so much be-
low the high record point itself as TO
represent any material fall. and from this
it has again rallied.
Speaking broadly, the improvement in
financial affairs that has been noticed
this week has been caused by a renewal
or confidence regarding the money situa-
ton through the remainder OF the year
II has become obvious. 70 begin with,
that our bankers were correct in their
prophecies made several months ago, that
the Western farmers and Southern plant
ers would this year draw much less
money than they usually DO from the
Eastern financial ceuters for the purpose
OF moving the crops.
Shipments OF money out Of New York,
Boston, and Philadelphia for this purpose
have. as the event shows. been less. that
is to say relatively to tho amount of the
country's business, than ever known be-
fore IN banking history, while as regards
the drain Of money to the South particu-
larry, the cotton crop has moved 20
market this year with such qUickness
that money is coming back 10 the North
and East from the South somewhat ear
Her than It usually does
Money Rates Lower.
Whether or not, therefore. It may be a
mere temporary movement, money IS
pointing at the moment toward greater
ease. Time money rates through tho
week were steadily reduced, and toward
the end Of the week daily call loans came
10 be renewed ar 4 per cent for the first
time since the latter part Of September
Last Monday the Imperial Bank Of Ger
many did not raise its discount rate al
though the anticipation had been general
that such action would be taken: but the
cause Of this rather surprising action was
made plain I'm the weekly report OF the
condition Of the bank, showing a heavy
decrease I'm liabilities and large Increase
in cash. The same sort OF exhibit was
also made by the Bank Of France. and
the vast hoard Of gold in the possession
OF the bank again stands at a new high
record. The Bank Of England report
showed somewhat smaller proportion
Of reserve than It did in the previous
week, but the decrease was everywhere
admitted TO be no more than normal. and
the banks reserve stlu stands at a figure
Ga 10 81 80
year.
The secondary recession OF the market
reached It's climax last Tuesday afternoon
and Wednesday morning upon the effort
Of speculative interests hostile to thal
market to make out that the statement
Of the United States Steel Corporation for
the September quarter was disappointing
but it very soon became evident that So
far from any disappointment existing the
report was in every intelligent quarter
recognized as being exceedingly good and
that taken in connection with the enor-
nous further development Of the iron
and steel business in the present quarter
II gave no excuse for speculative opera
tons for the fall IN the steel shares.
Large as was the business Of the Steel
Corporation in September. the last month
Of the last quarter, the new TONNAGE
placed upon the books OF the concern in
October has been, according to current
report, 80 per cent greater than in tho
preceding month, and while the net earn
ings Of the corporation for the last quar-
ter were a little more than S3S.O0O.O0O. II
seems not improbable that they will be
at least in the neighbOrhOOd Of S43. OOO. 900
Tor the three months ending December 81. /
Prices Again Normal.
What Fo n 10 .,,-t.r,-
here IS that the iron and steel mills are
now, and for tho first time since the 1897
depression. obtaining normal prices FOR
their products, and also in the case Of the
Steel Corporation that the MANAGEMENT
OF the corporation, made wise by the re-
suit Of experience IN the past. has stead
lastly refused this year to load itself I'D
with contracts for next years delivery AZ
the low scale of prices recently afforded.
The S5,0WO00 OF untitled orders on the
books Of the corporation shown at the
end OF September represent orders against
which actual specifications have been
made
Reports from business centers and from
the different business trades through the
country were al last week of a kind
calculated to generate unbounded optim-
ism IN the financial district. The rail-
roads one after the other are making
huge Increases in earnings and are enter
Ing perforce upon larger and larger plans
OF expenditure in order 10 ut themselves
TO take care OF an charging business that
Is surprising all previous dreams as 10 |
It's character and extent.
one instance Of this is the announce
ment that the New York Central lines
alone are TO put out $50, 100000 in this /
manner within the next few month. and |
emphasis must be again laid upon the /
fact that one great cause Of this laying |
put OF money by the railroad companies /
Is the sldmping Of their properties that.
with one or two notable exceptions, was