The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-15
STOCKS ADVANCE
DURING PAST WEEK
Recovery of Prices Has Been
Very Steady Since Decline
CROPS A BIG FACTOR
Belief In Severe Damage to Grain
Crops Caused the Recent Drop In
in Prices But This Has
Been Overcome

New York. August 1.-THE recovery In
the stock market continued last week.
although losing some of its force as
prices got further away from the point
at which the fall was arrested. The ex
tensiye covering of short contracts, which
was going on, had the effect of reducing
the demand, and other influences worked
automatically to lessen the demand.
Some of the events accompanying the
two weeks recovery, which were unfav-
orable in themselves, were to be reck-
oned as causes by anticipation of reports
on condition of cotton and the grain
crops, which confirmed the fears of heavy
deterioration from earlier promise The
more immediate factors of weather con-
ditions were favorable to some improve
ment in the averages collected in the gov
eminent report, thus adding to the dis
position to cover the shorts which had
been put out on the assumption of crop
damage. The decided shrinkage from the
earlier estimates for all three of the most
important crops-cotton, corn and wheat
required for consideration In the summing
up of the general prospect. The reliance
placed on abundant harvests and an ex-
portable surplus to correct the unfay-
orable foreign trade balance and the like
ihood of its disappointment were forced
on attention by the the statistics of the
July foreign trade with the severe de-
crease in exports of agricultural prod
ucts and its consequent failure to fur
nish a supply of foreign credits for the
building up of the banking position.
The immediate banking position offers
little ground for solicitude. The great bulk
to which the New York surplus reserve
has attained makes a surface showing of
actual plethora. Gold engagements in
London were uninterrupted, in spite of
this showing. and currency still flowed
from the interior into New York bank
reserves.
The fact that these conditions have
not altered the conservative attitude of
New York bankers towards borrowers,
especially on time, and the little demand
for mercantile paper, are bound to COM
mand attention for their suggestion of
anxiety over the curse of the fall money
market.
The persistent stagnation of the bond
market in face of the expanding bank
surplus is another item showing the
spirit of caution still prevalent.
The metal trades were conspicuous OBJ
jects of attention by reason of the pub
LEGATION of the copper producers month
ly statistics and the newly inaugurated
monthly statement of tonnage of untitled
orders on hand by the United States Steel
corporation. The reduced output of cop
per was satisfactory but the probable
influence of trade contraction on demand
in that trade intervened as factor
The falling off In tonnage orders for the
Steel corporation, while less than the
monthly average for the preceding quar-
ter, is Influenced by the cutting down OF
output which has gone on during the
month. Current reports of further price
recessions and of intended further cur
tailment also Influenced judgment on
the trade situation.
There have been signs of controversy
between the interstate commerce COM
mission andDhe railroads over the legiti-
macy of charges to the expenses account
of the roads. This herald of the coming
hearings over proposed rate advances
affected speculative sentiment unfavora-
bly,.