The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-10-02
By JOHN GRANT DATER.

4C-tiUu also IN quarters WneEc. LOOK
ing tC the far future men express
nclently cleared up to sdmit oE an
extensive bull movement But they
Justify-on the score CT the long
period of inactivity, the Gquidated
condition Of the market. and the sat
lsiactory closing up of the crop sea
son-some improvement in prices
Toe technical position of the mar
ket is admittedly strong, and with
the passing Of September, frequently
critical month in the money mar
ket, the possibility OF unpleasant sur
Drises is greatly diminished. SO
these men argue that men may buy
stocks for a moderate turn with a
fair degree Of confidence.
Expanding Investment Market
The sale to London CT $3.50, 900 Union
Pacific bonds. impaired a distinctly bet
ter tone TO the investment division, and
this was heightened 70 some extent By
the fact that the announcement % the
sale was made on the very day that a
prominent railway president, returning
from Europe, announced that American
railways could not negotiate further
sales Of securities abroad. This is
doubtless true so far as new Issues OF
magnitude are concerned, but matters
OF this kind change rapidly. and IL
should be recalled that il is very diff
cult for Europe 10 resist attractive rates
Of interest, when borne by American
railway bonds Of unqueStlOued security
But the bond market, IN its present
stages, IS Jess concerned over the pros
peCt Of selling new issues than with
marketing the bonds left on its hands
last year, and in selling those purchased
curing the recent liquidation.
Quite naturally. the speculative wing
OF the market draws sustaining force
al the present time from the improve
ment IN bonds. This is because Of the
fact that security market after ii col
lapse SHOWS Its nrSt signs Of genuine
Improvement il the investment division
Al the present time the bond dealers are
eEJoying the best market they have eX-
peT1enCed IN fun year, though even
Yet II IS more market between bankers
ana dealers tnan one in which the per
sorsti investor figures prominently \
very important feature has been the de-
cided Improvement N New York city is
sues, the heaVineSS Of which in conSe-
Quence Of recent large amounts sold BY
the city, had much 10 do with decreasing
all investments during the spring and
summer
General Business.
As TO conditions OF general trade
throughout the country, they have IN
dergone very little change in recent
weeks The total volume Of business
n progress has recently been estimated
ct from 80 70 s. per cent OF normal.
but this. in a country which conducts
its commercial Affairs upon such a
tremendous scale as the United states.
amounts 10 a huge volume OF business
Just at the present time II appears that
the dry goods industry IS making the
best showing. while iron ana steel are
running much below capa city. The rea-
sons for this are quite clear The tex
tile industry was one Of the FIRST TO
feel depression. very man mills closed,
and in consequence stocks ran down %
low quantities Now, with the de-
VelopmenJ OF seasonal demand, the
mills are starting up The iron and
steel Industry on the other hand Is
sJill feeling the effects OF the diminished
purchases Of railways, due 10 The IN
settled rate situation
Bank c(earanCeS continue to show
considerable loss. the total for the
week, at all leading cities IN the
United States aggreEating SIS. see, Oi2.
decrease Of 81 Per cent, as compared
with last year, and Of 25.1 per cent as
compared with the corresponding wees
in 1905 As usual, this loss IS provid-
&c chiefly BY the pronounced decrease
in New Ecriz. where the low prices for
stocks and diminished speculative ac-
tivity play an important part. Else
where than New York, such cities as
Baltimore. PittsburS, Cincinnati, Cleve-
land. Minne3 polls, St. LOUIS, Kansas
City, and San Francisco. show increas-
IS. The annual reports Of railroads
now coming 70 hand reflect splendid re
suits or the opera lions OF me aASL year.
and this Is a great sustaining force
Earnings for the current period show on
the whole no substantial change, gross
earnings as a rule increasing, though
not as uniformly now as in the past,
while let earnings by their decreases.
reflect the increasing COE Of operation
due to the added cost Of labor and ma
teriaIs- Commodities are being hasten
ed 10 market. however. and declining
grain prices and this movement aSsur-
ing abUnJaut traffic TO the railways.
Moreover organized labor IS now tax
ing an active part IN urging freight
rate advances
International Money Market
In consequence Of our adverse trade
balance, developments in the interna-
tiOnaI money market are attracting
much attention. The advance in the
Berlin discount rate to 5 per cent or
Monday was followed by a general
hardening OF European discounts no
important money center escaping. and
on Thursday, the Bank of England
marked up its minimum rate from to
4 per cent The direct reflection Of these
movements in the market vas a sharp
advance in demand sterling exchange.
which moved UP q of a cent In the
pound to 1855, but the rate eased of
later. On the local market, call money
touched 81 per cent on Friday, and
time funds hardened, but probably the
ments for October had more TO do with
this than the fore On developments
It seems clear that the foreign money
market problem between now and the
end OF the year will be of much in
terest- For some time past the Cont
nent has Outbid the Bank of England
in the matter Of South African gold re-
ceipts. while, at the same time, Egypt
and Turkey have been drawing heavily
upon LOndon's gold supply OF course,
the question uppermOSt in the minds of
New York bankers centers around the
possibilities Of a further advance IN
English bank and market discounts
and whether this may not result in
drawing gold from this country At
present. however. the sterling exchange
rate does not justify expectations Of
gold shipments, and under any circum-
stances these could be checked by ab1In-
dant commodity exports. or higher
money rates here
The Banking Position.
New York banking interests were
really very much surprised by the show
ing OF the condition Of the national
banks, under the Comptroller of the
Currency's call of September !. Al
though it reflected a gratifying increase
of $780, 900 in cash, as compared with