New-York tribune., 1911-12-18
Improvement in Metal Trade
Strengthens Confidence in
Money and Business
Circles.

corded last week at IA cents pound,
and in trade circles the prediction of L.
cent copper in the new year was made.
Low prices for finished steel products
have attracted an active demand from
consumers. The United States Steel
Corporation and tho independent con-
Germs have booked enough business TO
! assure normal operations at the various
plants well into the first half Of 1912,
but as deliveries will be made on a low
price basis the margin Of profit will be
small. and as consequence earnings in
the rest Of the year and in the early
months Of 1912 will be relatively light,
unless the volume of business expands
enormously as a result of the favorable
figures offered to buyers. Substantial in
terests identified with the steel trade are
optimistic, and owing 10 the signs of
actual Improvement in the industry and
the bullish remarks by Henry c. Frick
and others competent TO talk on iron and
steel conditions the securities of the
United States Steel Corporation appear
TO be heading toward higher levels.
Steel common gained 65s points last
week, and the preferred "a points. The
| stocks of the big steel concern also have
/ pressed belief in the soundness of the
/ United States steel Corporations posi-
/ ton before the law in his recent address
at the Finance Forum. If the steel mar
ket improves. business in general will
expand. The low level for iron and steel
prices evidently was reached several
weeks ago. in the last few days the
tendency has been In the direction of
higher levels, bars, Structural material
and wire having shown distinct ad-
| vances. The railroads are exhibiting a
growing disposition to come into the
market for iron and steel, and it is
understood that the Pennsylvania Rail
road COmpany's steel rail requirements
for the coming year will be much larger
than has been looked for in the trade
and that all of the larger transportation
companies have revised their specifca-
tons and orders for 1912 along lines
that will add TO the output of the steel
mills. Business men in general are not
looking for wild boom in the next
twelve months, but they believe a period
Of industrial reconstruction is develop
ing that will add to the wealth Of the
country and enhance the intrinsic value
Of stocks and bonds
. No uneasiness is noted in financial cir
cles over the governments attitude tow
ard tho so-called trusts. Furthermore,
financial circles are not worrying over
the outcome OF the present political sit
Uation. The useless Stanley committee,
which persists in investigating the
United States Steel Corporation and
which fails to bring out anything but
facts OF ancient history, practically
ceases to exist as far as Wall Street is
concerned, while the governments suit
against the corporation, yet to be tried,
has almost been forgotten. in connec-
/ ton with the governments assertion
/ that the Steel Corporation is a monop.
oily, as defined by the Sherman anti
trust law, it is interesting to note that
/ in a statement just issued by the Ameri-
can Iron and Steel Association it is
clearly shown that the corporations
ratio Of control in almost all lines Of
steel at the present time is lower than
] in 1901 the year the concern was Or
ganized. The ratio Of the companys
control has increased in only two in
/ stances-namely. in the production Of
pig iron and in the production Of various
rolled forms Of finished materials. In
addition to the Improvement in the
metal markets as a bull argument on
stocks. Wall Street finds in the Hadley
securities commission report. in the re
fusal of the Supreme Court TO grant the
petition Of the Leaf Tobacco Associa-
+ ton for q review Of the reorganization
plan Of the American Tobacco Company
/ approved by the United States Circuit
Court for this district in the govern
mont figures indicating cotton crop
I aggregating 100000 bales and in the
reports from business men in all parts
Of the country disagreeing with the re-
cent pessimistic forecast by the presi-
dent Of the National City Bank reason
/ for cheerfulness regarding the future Of
money, business and stocks.
/ Higher rates for money have attracted
out -of-town funds to this centre, a re-
/ Election Of which is shown in the gain by
the local banks in the last week on their
operations with the interior. Losses by
! the banks TO the Sub Treasury offset 10
some extent the inward movement Of
currency. but Saturdays Clearing House
statement showed, nevertheless, q sub
stantial expansion in cash and reserve
/ holdings of the associated institutions
/ in the rest Of the year New York will
/ be called upon to finance the large
amount Of exchange incident TO January
] interest and dividend payments on
| American stocks held abroad and ship
ments Of funds to the "old country" by
I foreign born American citizens. The
movement, however, is not likely to be
much Of factor in the foreign exchange
market beyond bringing about a tenn
porary frmer level Of quotations. Our
credits abroad on trade account are
large and New York Is still lending
money in European capitals. Berlin was
AN active bidder in this market last
week, and rates at the German capital
were advanced 10 a point that encour-
aged the renewal of maturing loans
made earlier in the year by our bankers
While oypprtc apI iunportc of NOR