The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-07-31

I been doubled IL authorized stock cap
iitai1ZatiOu, that Rock Island was re-
capitalized on 4 basis Of go IN new I
securities for 100 IN old. It may be
basis Of cheap and profitable financing
with this medley Of companies. does
not exist, and bankers are IN no mood
/ TO risk huge sums in a IanCtful under
| taking at a time Of great political, /
financial and industrial uncertainty
Fundamentals and Steel Report
Speculative Wall Street, except Of
course the bear party. treated the TAX
I ing over Of the ''PearSOn-Farquhar
Syndicate holdings with considerable |
/ enthusiasm on The first announcement
As the details Of the transaction be
| came better Known there was soma
modification OF opinion concerning the
/ Importance Of the affair. the trading
! element holding that the whole per
Torrance was merely an incident II
the reaction and that whereas II had
probably averted trouble IN the market
| Il had touched no fundamental source
Of disturbance. Some selling on Fri
I day and Saturday was attributed 10
this view Of the matter
/ While IL must be acknowledged that
the purchase Of 4 large block OF STOCK
from weakened speculative holders
does not bear in the slightest on the
I political campaign. the outcome OF the
harvests- the Supreme Court decisions
/ in the industrial trust cases the over
| extended position or the western
banks. the railway rate matter, the
thigh cost Of labor and commodities
the somewhat lessened activity in
business. and features Of that kind
/ which have been held 10 be the cat sc
[ OF the market reaction, Il Is not bar
! ren OF beneficial influences elseP mere
It assuTedly shocked Waii street OUT
OF its extreme pessimism for time
land caused many traders 70 look upon
| Two sides Of the shield instead OF one
buvinZ into Wall Street which has i'm
! proved the local money situation 70
some extent. and II most certainly
eliminated one weak position which
worked serious disturbance
That general business Throughout the
4 country has not contracted % any eN-
/ tent as Wall street has been led - be
Z iieve Is indicated BY the well sustained
I volume OF bank clearance the IL
! Creases IN gross earnings OF ra1lVa-, e
I and highly favorable col JJTation re-
/ ports Take for instance the last SAFE
I ment Of the United States steel Cope
! ration for the quarter ending I1ns 50
/ made public on TUESDAY II showed To-
/ tai earnings Of Sz0.171 So, an Increase Of
| 21.554. 0S4 over the preceding quarter, ald
! an increase Of no less than $l1,a5J.45s
/ compared with the corresponding qIST-
| ter in 1909 That business contraction
! now is relative rather tit1 actual Is
/ shown BY the fact that the steel t-Ol-
/ ECratICa had unified orders On 1and ~
/ June %. amounting TO 8.S5d.1St fCrs.
/ y hile this is ]. AZ, 70 tons less than vas
/ repcrted for Che March GU irtcf. u is
| actually 1S9. 50 tons more than appeared
/ on the books a year ago
Crop Conditions and Money.
! Conditions affecting the con- and cot
/ ton crop are nov the matters Of chief
/ concern IN financial and bussucss circles.
Injury 20 both crops, through very high
| temperature and drought, hs.s been re-
J ucrted during the week. ouS both COM
] nodftfes at present are features OF &C
/ tive speculation, and though Il Is feared
/ that both harvests have sustained some
I injury Il Is weII 10 await the publiCa-
{ ton Of the government reports before
/ pronouncing definitely on this feature
/ August viii bring the official figures
OF cotton, and August 8 those on corn
| and wheat, 50 the public has not long
! 10 wait for definite Information Details
are still lacking Of the reported arrange
uent for the curtaiinent Of the copper
/ output By leading producers but the
I report OF such impending action IS cred
tied in high quarters, and, since the
I will doubtless be beneficial. At least
/ temporarily. The anomalous condition
/ prevails in the money market OF call
/ loans at I 10 Iz5 per cent. and the pest
! commercial paper selling at 5 per cent
I but time loans have eaSed slightly dur
! ing the week, and loan brokers reported
2 u
] money at per cent, whereas money
/ was difficult to obtain last week at
/ 20 81 per cent for that period
/ The formation OF a national currency
/ association by the national banks OF
I New York on Friday was, OF course,
I in Difference to Secretary MaCVeagh's
suggestion. There is however, little
! probability Of an issuance OF '-Emer-
/ gency Currency The methods OF tax
1 ing out such az both cumbersome and
/ expensive anG with improving money
/ conditions Il Is not believed that any
/ necessity will arise for the use Of eneT-
/ gency currency this year The AldTiCh-
I Vreeland bill Is workable only under
! such conditions as prevailed IN August
/ and September, 1888, and October TO De-
I cernber, 1907 The bank statement did
Z not reflect the liquidation Of the week,
| loans increasing SS.I95,4I5 undc- the sys-
/ TEN Of avers ges, and S@o-S5sv 500 under
I the statement - actual conditions That
/ this was due to a shifting Of obligations
IS Indicated b. the reported reduction
; of loans in state banks and trust com
/ panies by -, 104, 600 Actual cash hold
1 fngs increased largely in clearing house
! banks. which under the average system
f; showed q gain OF 81. 81 go. and, under
I the actual statement, a gain OF 3, $751;
Z 90. Under the Two systems the gain IN
surplus reserve was SS,1sS,5oo and 8, 207.-
300 respectively.