The Washington times., 1911-01-15
TECHNICAL POSITION OF MARKET
HAS BEEN MATERIALLY BETTERED
Wall Finds Handling
Crisis, Developing Alive
Cleaning Thorough-New Financing Interesting.
GRANT DATER,
Special Financial Munsey Publications

BY JOHN GRANT DATEH,
Financial Representative the Munsey
the leading manufacturers to maintain
the present schedule of prices for fin-
ished products of iron and steel. AS ia
the economic value of such a proceed
ing, opinions, of course, differ widely
as they have on all former occasions,
demand has been ignored, but from the
Wall Street point of view the refusal OF
the steel manufacturers to cut prices at
this time was regarded as favorable
Nevertheless, the reports that prices
must be cut sooner or later still con-
tinue.
Price Maintenance.
Stability in price of an article like
steel, which enters so largely into COM
merce and determines so much of the
future of general industry, is desirable,
but there is always the reverse side of
the shield in matters of this kind, and
the attorney for the shippers. who are
opposing the advances of freight rates
by the railways, has been quick to
point 1t out In the present instance. A
policy of price maintenance in steel
rails, for instance, assuredly deprives
railways in good credit from taking
advantage of low prices to lay in sup
plies of rails and other materials on
terms favorable TO the companies, and
the same Is true of other consumers of
finished steel products. Under such con-
ditions II is difficult to see how con-
struction and operating cost can be
much reduced.
1t is doubtful If any reduction in steel
prices at the present time. however,
would stimulate domestic buying, for
the industry seems to be verifying Mr..
Carnegies original statement that
steel Is sometimes king and sometimes
pauper." This is borne out by the re-
port of the United States Steel Corpora
ton showing untitled orders on hand on
December 81 of 2,674 100 tons, which is
x, 500 tons below the November figures,
and established new low record in the
history of the corporation. Compared
with December 81, 1909, when untitled
orders amounted TO $4,000 tons, the
present report shows a reduction of 50
per cent while It is less than one-third
of the untitled orders, S,4S9000 tons, re
ported on December 81, 1906, which was
high-Water mark.
General Industrial Conditions.
It must be admitted that the statisti-
cal position of leading metals. like iron
and copper, is far from satisfactory. but
under existing conditions, met
ais are as good a barometer of the in
dustrial future as they were in the past.
remains to be seen. Both metals are
directly affected by the special inftu-
ences arising out Of the greatly dimin-
ished purchases of the railways. Iron
and steel, in consequence of low stocks,
should recover rapidly as soon as the
influence of the rate situation
IS removed. Copper Is quite plainly
from an extensive OVerproduc-
tion, which Is indicated by the price
"A
Copper Producers Association for De-
Cember, showing a surplus of L.. d3O, l90
pounds on hand. This, to be sure. is
), ,35S, ,S74 pounds less than the November
report. but home consumption Is very
much diminished, and the output has In
creased. The slight reduction in sur
plus is traCeable wholly to increased
exports. which is strongly suggestive of
a storage of cOpper-nOt increased con-
sumpfion-abroad.
So far as one can determine from gen.
eral observation and from a study of
the inGICeS. business conditions through
out the country remain Substan antially ur-
This is clearly indicated by
the heavy decrease in bank exchanges.
The total for all the leading cities of
the country this week, amounts TO
s., ,li0, lO4, ,242, a loss of 1873 per cent as
with 1910. Yet. that this is
largely the result of the contra ction in
the fact that the decrease is due al
most wholly TO falling off at New
York, such cities as Baltimore. CinCin-
natl. Cleveland. Chicago. St. Louis.
Kansas City. and San Francisco show
ing excellent increases.
New Loans and Foreign Trade.
But while domestic trade is proceed
ing along conservative lines, a crafty
&c IN int
tional business. Price concessions on
steel products to foreign buyers are re
sulting in increasing exports of manu-
facturers of iron and steel, and the
report on agricultural ship
ments for December places the total at
1893, GIL, 437, against SIS, ,299, ,CS5 in Decem-
ber 1893. an increase of S45,3I2.0O0 As IS
well known, wheat and corn are now
being held back by the farmers and are
advancing in price, in consequence of
which breadstuffs show no increase in
the volume In the months agricultural
exports. Cotton shipments. however, rep
resent value about $5O,OO0Oo0 greater
han in the preceding year, and the i'm
provement in the country's trade bal
lnce is due very largely to the higher
price and increased purchases of this
great staple
There seems every likelihood that the
financial market is TO De CaIled upon Tor
Grge amounts of new capital within the
loar future. Two highly important an
of impending issues were
rade during the week in connection
With a s60,000,00O New York city AZ per
'ent fifty-year loan, and an issue of
Al, 100000 Pennsylvania railroad stock.
n addition to these[ the financial dis
rict is full of rumors of impending bond
md stock issues. One estimate is made
hat new corporation borrowing will run
lp to fully $50O,OO0.OO0 within the first
TX months of the year If the community
5 able to supply that sum.
Pennsy Stock and City Bonds.
The proposal of the Pennsylvania rail-
Dad to ask it's shareholders for an au-
horization of 800, 1000 additional stock
anne as a complete surprise to Wall
street, and influenced one of the set |
'acks of the week. Similarly, the rank |
nd file in Wall Street was unprepared !
or a AZ per cent New York loan, as
he issuance of a ~ per cent bond had |
'een expected. In consequence, the out !
tsnding city issues sold off, and other |
'onds Of the strict investment class |
esitated. The financial district. how |
ver, speedily came to a realization that |
he city would not have decided upon a !
ANNUAL Statement