The Washington times., 1911-05-14
CONTRACTION IN STOCK TRADING,
WITH STREET IN PESSIMISTIC MOOD
Repo-Temporary
Railroads Draw Unoable CommentTru Companies Join Clear
ing House-Idle Money Banks
by JOHN GRANT DATER,
Special Financial of Publications.

NEW YORK, May 14-Wall Streets
business week was marked by sharp
contraction in the volume of stock trad
ing and prices, upon the whole, while
displaying considerable irregularity, de-
veloped an easier tendency. Some cur
tailment was noted also in the bond d.
vision, but this was slight as compared
with the performances in the depart
ment given over to the more speculative
class of securities. Bonds were consist
emily strong, and the fairly well-main-
tanned inquiry and sustained strength of
investment issues constituted the best
feature of the interval
There was no mistaking the fact that
speculation sentiment was considerably
depressed by the developments of the
week, many of which, such as the accu-
mulating supplies of copper, the reduc-
ton OF orders for finished steel prod
uets, and the curtaiment in the divi-
dend rates of the Boston and Maine. and
the Vandalia railroads, were reflective
of the prevailing contraction in general
industry Features such as these went
a long way in offsetting the favorable
Tic SIllCl VI "NS
the Government statement of agricul-
tural conditions for May.
Winter Wheat Conditions.
The statement on the grain crop was,
to be sure, a somewhat mixed present
ment, for while the condition for win
ter wheat on May l, of SCI. shows an
improvement of rs per cent as conf
La and iG a
trife above the ten-year average for
May. which is SO per cent. the aban-
doned area, estimated at 3,1lS,0O0 acros,
was largely in excess of any of the trade
estimates. 1t reduces the seeded area
from the largest on record in December
to only about an average amount for
this season Of the year. However. as
against this the May condition Is full
per cent better than 1t was year
ago, and all authorities agree that the
present showing is excellent. The fig
ures, as they stand, indicate a yield OF
AZ, ,OOO, 900 bushels which, If harvested,
will be the second largest winter wheat
crop on record.
OF the important special reports OF
the week bearing directly upon indus
trial conditions the rank and file in the
brokerage Offices were not unprcpared
to see some reduction in the amount of
untitled steel orders, but they were
scarcely prepared for the showing Of
the Copper Producers Association. dis
closing the largest amount OF surplus
copper on hand since August last. Re
ports of heavy declines in the supplies
of the red metal during April were most
insistent and appeared to have been
made with authority. but instead of in
creases the report shows an actual de-
crease in deliveries of 10,64,OO0 pounds
of copper from March. and despite
somewhat reduced output, the surplus
copper on Nav !, was reported at lbI,-
555, ,aOS, an increase of 3.5iS.n0O pounds for
the month.
Some Gloomy Steel Men.
As already stated the Street was fully
prepared for a reduction in the untitled
orders on hand of the Tnited States
Steel Corporation, and chiefly because
the iron and steel manufacturers have
been taking an exceedingly blue view
of the conditions in that industry, and
have made no secret of the fact, not
only that orders were falling Off, but
duction for concessions would not, at
the present time. stimulate buying. In
fact the. recognized authority of the in
dustry, the Iron Age. speaks of ''resig-
nation of the leaders OF the industry
to a condition of inactivity that has
few parallels
There is a suspicion in the minds OF
some men that the rather remarkable
depression of sentiment which prevails
among some persons in this great in
1uStrV has IFS origin in effort N i'm
press Washington with the necessity of
going slow in matters of tariff revision, |
but If such Is the purpose, 1t seems
highly improbable that it will accom-
pllsh any beneficial results. Writing of
-hese extreme pesSimists the Iron Age
says: These see in legislative develop
nents the possibility of changes in |
standards which may have far-reach-
ng effect upon values, and this explains
10 their minds the paralysis which has
ove-taken demand"
Industry Must Improve.
Despite the reduction in untitled Or
ders, amounting to 22S,597 tons, during
the month of April, the Steel Corpora
ton reports as on its books, on April |
30. orders for 3.2lS,104 tons. This is not |
large as compared with the enormous |
tonnage reported under order upon oc-
casions in the past, but the fact re-
mains that 1t is 543,947 tons larger |
than the untitled tonnage reported on |
December 81. last, and it is slightly
above the volume of prospective bust
ness on September 80, 1910. A contract
ing tendency in a basic industry is
naturally not relished, but the fact re-
mains that the business of the Steel
Corporation on hand is considerably
above low water mark, or even above
The record of seven months ago.
With iron and steel, as with textiles,
4 feature which must not be over
ooked is that stocks in the consum-
ers' hands are very low, and that
,hese products are necessary and es-
5ential articles for this country. The
enforced upon the railways
and the uncertainty surrounding the
-evision of the tariff naturally reflect
upon these special industries
IT this time, but the railways must
supplies and maintain their equipment,
md the same is true with individ-
Ials; they must be clothed Low
itocks assuredly establish a basis for
speedy recovery in these industries in
he future, for the products are neces-
aries and will be in great demand as
ioon as the present vexatious prob
ems are solved.
Studying Trade Problems.
1t is quite true that the contraction in
Industry, traceable so directly to po-
itical uncertainties and tariff revision,
S modifying the Wall Street view con-
erning the effects of the industrial
rust decisions upon securities to con-
iderable degree. Many brokers who,
ut a short time ago, felt that this was
he sole repressing influence and that