The Washington herald., 1911-05-08

New York, May THE colder weather
last week was in such decided contrast
with the unusually high temperatures CT
the week preceding that for n time 1t
created the impression that the aGricIl-
tural season had received a setback.
But so far from this being the case,
the fact was that the GOODNESS which over
spread the country from the Rocky
Mountains eastward was exceedingly
helpful to the crops. 1t obvfated fears of
a burning up of newly started vege-
tation which might have been entertained
had a period of heat that was almost as
great as that Of midsummer been con-
tinued.
Early in the week the May report of
Snow, one of the country's leading private
crop experts, made its appearance, con-
firming the general belief as to the high
ly satisfactory progress made by the
crops during the month of April.
1t is, of course, to be remembered that
a prime factor in the grain and other
agricultural markets just now is the play
of speculative forces representing the
effect of Hangover" conditions concerned
with last years harvest. The bulk of the
that were raised in the country last year
has already moved to market, leaving the
visible supplies of these commodities
comparatively reduced, or at any rate in
a smaller number of hands.
Manipulate Market.
This makes manipulation of the So
called old crop options in the produce
markets more easy. And manipulation
20 hn HoS olr II, taI
by the great decline that has gone on in
the price of wheat and cotton since last
year, which has had the usualJeffect of
creating a large speculative short inter-
est in these articles. In the case of cot
ton. too, an element making for higher
prices Is that the export demand for the
staple keeps up stoutly as the result of
prolonged business prosperity in foreign
lands whose inhabitants use cotton goods
on a large scale.
Money has, so to speak, overfiowed from
short-term notes into the bond market,
so that the average price of investment
securities of old-fashioned sort is creep
ing higher day by day and the supply of
money is still so large that funds can
now be obtained at 31a per cent for use
into 1912 and at 81 per cent for maturi-
ties in December
One interesting feature in this regard
Is that there are signs that the specu-
lative movement in the English security
market that has been running lively
course for some time has eliminated, at
least temporarily, and that moneyed peo-
pie in England are beginning to turn their
eyes very directly to this country. They
as we'll as people in the United
States do themselves, and perhaps bet
ter than people in the United States, the
superb residence on business life here,
and 1t is not at all unlikely that when a
great forward movement in business once
more starts up in our country it will be
found that English and Dutch buying of
stocks preceded it,.
Copper Is Steady.
Affairs in the copper and steel and
iron trade still lag; and yet it seems diff
cult to depress the price of copper below |
II cents a pound. and at all concessions
from the present quotations for the COM
modify enormous buying is witnessed.
In steel last week a better feeling was |
visible, based presumably upon a quiet
placing of certain large orders by the |
railroads. Doubtless one consideration |
that has acted as a restraint upon pur- |
chases of iron and steel stocks is an |
sion in the trade must end sooner or
later with a large cut in the price of
steel products and with the United States
Steel Corporation once more assuming |
control of the trade situation, as 1t did |
so effectively, for instance, in the early /
part Of 1909. But one weak point in this
theory Is that the average price of steel /
products is already below the lowest
yearly average Of the last decade.
The price of steel rails is maintained !
At the regular figure. butaa rail is
being turned out whose Manufacture |
costs several dollars ton more than
t formerly did. The notion. therefore,
that big cut in the iron and steel |
prices Is imminent carries with II good |
1ea1 Of assumption; and so far as can be
observed, such scutting Of steel prices as
1as lately happened has only been made
by a few small producing interests. The
ak Of overproduction in steel will quick
" disappear as soon as business in the
country once more becomes active for
Inherent reasons.
Trust Extended.
It Is interesting to note that last II
weeks news carried the announcement
hat the United States Steel Corporation
lad purchased a large iron and steel
liant on the Pacific Coast. Changes In
he stock ownership Of the great Bald
vim Locomotive Works. at Philadelphia,
which became known last week. were also
ather significant.
A feature of affairs to which some at
ention II now paid IL the more numerous
disputes between. the employers Of labor
md their employees. such asa the shop /,
mems strike on the Pennsylvania, the
lsmand Of the freight handlers IN Chica-
70 for more pay. and machinists' strikes
! various sifiss. Incidents q this kind |