The Washington times., 1911-02-05

but the Union Pacific announcement
came at the precise psychological mo-
ment when 1t would do the most good,
and 1t did do world of good in neutral
izing the effects of a poor statement
of earnings made by the United States
, Steel Corporation for the December
! quarter. For once the preliminary es-
innate Of the Steel earnings went
wrong for, contrasted with predictions
of between SIS, 100000 and s29. .OO0, 900, the
quarters earnings were but 25.ss0s7s.
Nothing perhaps better illustrates the
! improvement in Wall Street sentiment
than the manner in which the financial
district received the Steel earnings.
They came out after the close of busi-
! ness on Tuesday and a majority Of
brokers in Wall Street looked for
break in Wednesdays market, upon the
| nearly $3,0O0.0o0 underestimate, but in
stead Of that there was only trifiing re-
cession and i-regularity after which the
improvement was resumed. The explain
alton Is surely psychological and CEN
ters in the fact that the Union Pacific
! announcement of s75,0o0.0O0 for double
tracking conveyed to all men knowl-
edge of the fact that a large sum was
going into rails and other material in
the future. which the Street assumed
would go to the Steel Corporation.
Improving Steel Business.
There is no probability now, as was
threatened at the time of the dispute
between Mr.. Hartman and the Steel
Corporation ever the quality of rails,
OF the large Union Pacific orders going
to German or Belgian rail- manufac-
nd hA Co.
oroer stays In this country means much
for reviving industry. actually as well
as scntimentally. The Union Pacitic's
announcement served the purpose OF
dlVerting attention from the statement
OF earnings which is a thing of the past,
to the statement of increasing bookings,
which Is thing Of the future, and upon
which the future earnings of the cor
poratlon are based. These. as already
indicated, are coming in in expanding
volume.
1t would surprise no one familiar with
the situation II the Steel earnings for
the December quarter were, the lowest
of the present period of contraction. AS
pointed out in this column, the iron and
steel industry touched rock bottom in
December, since which time the orders
have been coming in rapidly, the book
lngs by the Corporation for January
averaging $1,000 tons day as compared
with 1900 tons a day in December. Ger
tain very large rail orders received re-
Gently have not as yet been announced,
and Judge Cary. In an official state
nent, points out that a marked i'm
proVement Is noted in ali lines with de-
caoed activity m the tin plate, wire,
and export business. ''.''
Trade Revival and National Problems.
The various weekly reviews of trade
In their current issues note Improvement
In very many different directions, and II
Is interesting to recall in this connection
that the betterment was first reported
In iron and steel, that industry again
demonstrating its value as an accurate
barometer Of trade. For instance, an
Increased inquiry is reported In dry
goods, and that line was also favored
late in the week by a sharp decline in
staple cotton, and larger dealings are
noted in hides and leather. Bank clear
ances still make unfavorable compaH-
sons with last year, those for the coun-
try during the week amounting to $3,O15,-
I5O,IS7, representing a loss Of III per
cent when contrasted with 1910, but the
aggregate Is actually "a per cent above
the total for the corresponding week in
1863.
While practically all the great ma
tional problems which disturbed the
solved, the disposition to throw of their
restraining influence is certainly more
pronouiced both in the security market
and in general industry than on any
other occasion for very many months.
There are, to be sure, some things in
the situation that Wall Street observers
do not fully understand, as, for instance,
the Improvement in net railway earn !
ings by many roads for December and
of gross earnings for January, coinci- |
and the increased number Of idle cars, |
but the explanation Of this is to be |
found, possibly. in the open" winter |
which has facilitated traffic movements |
and kept down the expenses of opera
ton.
An Expanding Credit Balance.
About the only possible check which |
interests now see to continued |
expansion in the country's industries. |
aside from unpleasantness arising out |
of the unsolved problems already noted, |
rests in the still expanded loan account |
of the interior banks. The returns Of
the national banks Of the country, un- |
der the call of January z, made during |
the week, was highly disappointing to |
persons who had looked for q marked |
in loans. From the date |
of the November 10 call loans have con- |
tracted but $4S,002,0 ,034. while, as COM
pared with January 81, 1910, loans are |
larger by S173, 1856, upon an increase |
in specie and legal tender holdings of
but 81, ,1SS, ,490. On cash holdings Of $685.
267, 1853. the national banks are now sup I
porting loans Of S5,402, ,642, ,351, and loans |
now exceed total deposits by $3.50, 40, ,54, |
which is the widest divergence in years. |
AS the reserves Of New York are the |
only ones which show material gains, 1t
seems evident that the interior has not
contracted its heavy obligations.
While the already expanded condition
of the interior banks does not seem to |
admit of a much greater expansion, the |
confident prediction is made that the
country Is destined to build up very |
heavy credit balance abroad during tile |
coming year, through merchandise ship
ments and security sales which will |
help the situation. In fact the New
York position on International opera
tions Is reported by high authorities to
be more fluid now than for long time
past, due to extensive. loans by New
York to London and Berlin, ard to the /
carrying in New York, in consequence
Of cheaper rates, Of some extensive lines
Of securities. including large block OF
city bonds for poreign account. Bear
ing upon impending bend sales to
Europe, It rnay be said that negotia-
tions in connection with placing
paofffo I0an In paria which