Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-23

spiration in that quarter was the enor-
nous value of the farm products for 1910
The investing public has the great funda-
mental truth ground into it that big
crops mean general prosperity and that
all other causes are more or less trifiing
compared to this one great element or
the creation of colossal new wealth from
the soil.
When the crops of single state like
Iowa or Illinois or Texas foot up from
three to five times the value of the entire
gold output Of the United States there
is good excuse for subordinating all other
industries to that of agriculture. The
great totals which have been given by
high authorities to the value of the
1910 crops inspire faith and confidence
among people with money which nothing
of disturbing kind short of earthquake
or revolutionary violence can shake 1t
is this which is the real background of
the market at this time although the
nearer and more clearly visible spectacle
of politics has Influenced the volatile
speculative sentiment into play for quick
action.
| favored by most prophets is that if the
great powers which have been RESPONSE
BILE for the boom find they can hold
prices around these levels or advance
them without unduly. expanding the VOL
| ume of stock exchange business they
will do so. The banks would have no
objection to daily average of 100000 to
| 100000 shares. That volume of trade
L.
After the first Of the year 1t could be
| safely swelled to double that total, but
there will not be superabundance of
| funds from now until after January I.
Money Demanded by Cotton.
The extension of time under which cot
| ton can be exported under the existing
| methods to January 1 will greatly stimu-
late the present movement from first
I,on de oil fov
Of funds to handle it. Exports of that
staple. for the next ninety days are moral
| ly certain to enormously increase totals,
and there will be an immediate compensa-
tory benefit for every dollar Of capital
that goes into that channel 1t will show
up in the International trade balance and
in a needed fertilization of American
credit abroad. That is one of the bright
spots in the situation and the part which
the south is playing In the matter is of
| inestimable value. The shifting in our
foreign trade balance Is a very gratifying
feature to both bankers and the business
community.
| The annual reports of railroads for the
| fiscal year ending June 30 keep piling in.
| They tell the same story of record break
ing earnings and an increased percentage
of revenue going for wages and other
operating expenses. These reports hardly
warrant the demands or expectations of
| rates, although railroad arrangements
contend that the returns since June 30
| show the growing need of the increase
| asked for. 1t is to be noted also that in
| the inner circles Of Wall street there is
growing conviction that the interstate
commerce commission will be altogether
fair to the transportation interests. By
that is meant leaning in favor of
higher rates. No confirmation of this
theory can be found in any of the utter
| ances of the commissioners or anybody
authorized to speak for that body or it's
| members. Yet the belief grows stronger
every day that the commission will by
| its rulings place the railroads in a better
| the money which is said to be necessary
for the purchase of rails, equipment and
betterment. 1t is a curious development,
| this public expression of confidence as to
the future action of the railroad COM
| mission. 1t certainly betokens a belief
| that certain influential people have
foreknowledge of what the commission
| is going to do.
| Among the many rumors which have
been af1oat of late is one that the Penn
| sylvania or New York Central or both
acting on a community of interest basis
| are about to acquire the Virginia rail-
road built by H. H. Rogers and owned
| by the Rogers estate. To this report
authoritative denial is made. coupled with
| the statement that the property is not for
| sale and that no offers have been made
| for it anyway.
Railroad Orders Scarce.
| The few scattering orders which rail-
roads have been sending in to the steel
trust and the independent iron and steel
| companies do not justify all this hurrah
about the improvement in that industry.
| These orders may come along and no
| doubt will later on, but they have not
yet materialized Meantime the trust is
producing about $1,000 tons day more
| than it Is putting on the books in the
form of new business.
A curious sotry was in circulation
Friday afternoon, bearing on the later
phases of the boom in steel. Nobody
| is asked to believe it. but it is worth
| repeating as a piece Of gossip. The
| Cassell and his English friends, who
have been the guests Of the steel mag
mates for the last week or ten days,
were SO impressed with the future of
the big industrial that they bought
about 100000 shares around ~. In do
ing this they are supposed to have
been Influenced somewhat by the assur-
| ance that they would make at least
two years dividends before they sailed
for home, and that long before the two
years were over there would be a sub
stantial increase in real dividends.
In order to make good on the first
paragraph or the pledge came the D
point bulge Of the last few days, which
was going that much further than had
been originally planned. The last end
OF the advance is said to have been
helped along by heavy buying on the
advice of Mr.. Cassell and his friends,
who were profoundly impressed by the
ability Of their American acquaintance
to handle the American markets as
they might elect. If the advices Of the
Cassell party were needed, London
would by this time have. the entire
capital stock of the steel trust, if the
current story is to be believed.
NEW YORK BANKS.