The San Francisco call., 1910-03-13
The Financial
Situation

In spite of the general advance
in prices on the Eastern securities
market conditions are most unsatis-
factory from the investors stand
point. as the market seems largely
professional and strongly specula-
tive in character.
IL viii be noticed that after every
material advance in price. heavy
realizing sales have caused a reces-
sion II is also apparent 10 the
close observer that a large amount
OF the securities acquired by certain
interests during the recent slump
are being gradually fed TO the mar
- ket as prices reach the point that
permits large profit from their sale.
a glance over this column of three
weeks ago viii show that this action
was foreshadowed.
T.. 5. steel has been the leader in
tho upward movement Much of the
recovery is attributed TO the excel
lent condition of the steel market
and the fact that large orders are
pending. This can not. of course.
be the real reason, for the industry
has not suffered any loss of trade
or lack Of orders which would ac-
r6Uut for a break of almost 90 points
in the price Of the stock On The
contrary, the company has for some
time been earning more than at any
period in it's history and the demand
for its product has been fairly steady
with no more than the ordinary vari-
stions in orders.
The copper situation looked very
encouraging the earlier part Of the
week, as IL was reported that. Calu-
met and Hecla had sold large or
Ger 10 the British Government at lac
per pound, and a general advance of
cent per pound was predicted for
the metal. This would mean an
additional profit Of SIS, 5,O00, 900 TO the
copper mining companies.
Coppers were stronger in conse-
ouence. but have met with a setback
from the report Of the Copper Pro-,
oucers' Association showing a con-
siderable Increase in surplus.
The nigh price Of the metal two
years ago, when il sold around 24c
per pound, was too high. even as
AZ cents per pound was too low. 1t
is doubtful il the price will again
advance above 1Sc per pound, except
under arbitrary restriction of out
put. but as many of the mining
companies can produce and market
copper at a cost of from 10 II
cents per pound, they would be able
70 realize large profits at a price of
lsc per pound and pay good diviS
The severe drop in price of the
metal has had the inevitable. mod
ern result Of bringing about an at
tempt TO merge the principal copper
producers into a great corporation,
with the idea OF controlling produc-
tion and price. The completion Of
the merger VIII depend upon the
outcome Of the suits now tending
against other great combines, but
definite steps are being taken toward
its formation
The recent Government report on
farm reserves Of grain shows that
tleSe reserves have not been as
large since 1903. but as the popula-
tion of the country is fast fncreas-
ing. the reserves are'-probably no
more than is needed to insure a
steady supply, especially in view of
the reported damage to the wheat
crop in Kansas.
.fThe general situation would indf-
II re strong bull campaign IN the
tser 1ritIes market ~the eariv sum
E -I, with a return 70 the high prices
Tt Is generally accepted that there
VIII be no decision by the Z. s. Su-
preme Court that will affect the
present operating methods of the
further restrictive legislation wifi
he necessary to bring about such
result
The labor situation continues to
be the disturbing feature and is
probably the one thing that will
prosperous conditions throughout the
country.