The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-07-31
New York, July 3O.-The breakdown

New York, July 3O.-The breakdown
OF the speculative clique which sought
to link up series Of discontinued
lines into a new transcontinental sys-
tenn, proved to be at the bottom OF the
collapse in values which occurred in
Mondays and Tuesdays market. The
taking over of these securities by q
strong international banking synd!-
cate unquestionably saved the market
from a worse crash, and produced a
radical change for the better In the
technical situation. AS soon as the
facts became known liquidation ceas-
ed. and a sharp rebound followed
which materially accelerated by \
rush to cover outstanding shorts. The
extreme pessimism bred by the mys-
terious declines of last week suddenly
disappeared and the whole market dis
played a better and more normal tone.
Another consideration which impaired
a better tone and checked the grow
ing wave of pessimism was the report
of the United States Steel Co., which
showed handsome profits for the past
quarter and a smaller falling off in
orders on hand than was really an
ticipated. AS the steel trade is still
considered one of the best industrial
barometers, the effect of this report
was naturally stimulating.
The monetary situation shows fur
Their improvement. Local bank re-
sourses continue to rise and there Is
much less apprehension of severe
monetary stringency during the COM
ing fall than at one time existed.
What with liquidation IL. stocks and
declining values in commodities and
securities, money goes much further
than six months ago, especially in
view of the shrinkage in volume Of
business and speculation. The last
statement of the national banks may
have been unsatisfactory owing to the
small contraction in loans at the in
terror, but recently farmers have been
marketing their crops more freely and
liquidation from this and other sour
ces will probably result In much bet
ter showing for the interior banks
when the next call is issued Gold inn
ports continue on an increasing scale,
and there is every indication that we
will command all the precious metal
that we need. Europe's heavy invest
ments in our securities during the past
six months more than offset the
shrinkage in our foreign trade balance
The tendency in our foreign trade is
towards improvement. because the de-
cline in commodities puts US upon a
more favorable export basis and tends
to restrain importations. While some
stringency may be anticipated during
the crop season, there is much less
danger of crisis in this respect than
formerly. Should any Of the bankers
agree to form currency associations.
that will be further protection
against crisis. which In view of the
inability of the Government to assist
the market in an emergency would
seem to be desirable alternative No
one pretends that these associations
are Anal cure for the currency evils,
but they would at least prove an eff
ficient palliative until genuine cur
rency reform can be established.
The crop outlook is not entirely
satisfactory. The yield of wheat. cot
ton and corn is likely to fall below
early calculations. The loss in wheat
has already been amply discounted
and Is not serious. Much deteriora-
ton. however, has taken place in cot
ton. and the corn crop has likewise