Evening star., 1912-09-08
BASES ITS HOPE ON CROPS
Abundant Production Expected to
Be Attended by Better Prices.
MONEY MARKET IN SHAPE
No Signs Here Of Stringency,
Though Spectators Have Had
Stocks Under Pressure.
BY H. ALLOWAY.

BY H. ALLOWAY.
NEW YORK, September THE se-
curity market docs not yet broaden
though those who are expectant OF that
Improvement show no sign OF wavering
In their confidence They base their an
ticipations upon something else than
theories moreover; they count upon Wall
street good times because good times are
coming to the whole country There is
no room for doubt as to how the new sit
uation shapes. Crop conditions are not
longer debatable-the years yield is
simply phenomenal-a bountiful produc-
ton attended by prices which will make
the American farmer again the toast OF
the world. Marked progress is made, too.
in the Industrial quarter. In almost every
department factories are buster now than
they have been in a long time past-and
what is influential Is the tendency toward
ord for example: when a month or two
ago Improvement showed for both pig
and finished product there was pessi-
mistic chorus challenging the legitimacy
Of the gains shown. the oracles being
vigorously insistent that only a squirt
was being exhibited. and that we should
quickly have return to dullness and de-
clines. Facts as persistently registered
seem to dispose of this sort OF criticism.
Indeed, there are indications that even
boom conditions may be established. Not
only IS the price Of iron advanced-but
the advance is indisputably traceable to
the fact Of multiplying orders from con-
sumers who have nothing speculative at
stake whatever. Crude steel has risen
a full dollar a ton. and finished material
shows even a larger proportionate up
ward movement-while upon the very
highest authority 1t can be stated that
big orders at figures beyond any openly
quoted are being refused both at Birming-
ham and Pittsburgh for delivery at New
Year or after. More reliable barometer
could not be consulted.
AS general business revives there be-
comes more and more apparent the ex-
tent to which the country has recently
carried its economical disposition into
practice. 1t has been a popular habit to
talk Of stocks Of goods on hand being
reduced. only the demands Of consump-
ton being kept pace with by merchants;
but in Wall street at least there has been
no approximate comprehension of how
far the public-the commercial public
has been conducting business on the
hand-to-mouth basis. Such expansion in
demand as is already evident brings to
normal purchases. must have immediate
far reaching effect, for 1t Is not much
an exaggeration to describe the mercan-
tile business of the country as having
for more than a year past been largely
matter of keeping store shelves empty.
Surplus stock is discoverable nowhere.
Overproduction automatically ceased
with the shrinkage in orders from re-
tail buyers. You cannot overestimate
what it means to a country like the
United States Russell Sage used to
say. when every other man YOU meet
Is wearing his last years coat"
Market Under Pressure.
Several times this week the security
market has been put under pressure by
spectators who affect to find reason for
worry over the money market outlook.
Taking as their text the advance of the
Bank of England discount rate. they have
made free predictions OF stringent money
markets in the United States. Of which,
as have taken place in the loan market
having been entirely natural and rea-
sonable. OF course, we are now approach
ing the crop moving period when there
is always active demand for available
funds, but the situation at present fur
nishes ample warrant that there will be
nothing in the nature Of excessive de-
imand-nOthing which cannot amply be
made by the banking institutions of the
country. 1t must be borne In mind that
lSrevailing ten or twenty years ago. New
York is not now called upon to put up
all the money required for the crop NOV
ing purposes. The western centers, such
as Chicago, st. Louis, Cincinnati and san
Francisco, are just as relatively strong
as New York and to a very large extent
self-supporting. That there will be some
hardening of money rates is. Of course.
| to be anticipated. The current revival
of industry in business. apart entirely
noCaSuitioS calls for
| the employment of large funds which
have been idle through period Of de-
preston And money, 3ust the same as
any commodity. must advance In value
when it is in demand. But never Lave
the finances of this country been in
sounder shape than at the present time
Accumulation of reserved capital Is SIM
| ply phenomenal. That 1t has been with
held from stock market investment is a
matter Of common knowledge But that
| it is available for all the purposes Of
| legitimate business is incontrovertible.
Those who seek to create security mar
ket apprehensiOns because Of imaginary
money troubles are spectators chasing
will '-the-wisp.
A consequential factor In the financial
situation-in SO far as bank resources may
be concerned-has to do with the rather
sudden but pronounced and intrinsically
sound enterprises that in every section of
the country are shown in building expan-
sion-apropos of which there is force
fulness in the following epitome of views
expressed by one of the great banks Of
New York (the Fourth NauonaD in it's
current review OF conditions:
Building Operations Large.
Building operations in various section.
are being taken up again in a large
way. there being plenty Of capital avail
able for legitimate operations of this
character In many Of the smaller cities
the building industry is showing pro-
nounced activity, while at the great CEN
ters of population some immense projects
are being put through. These will call
for a great deal of money later on, but
| undoubtedly the capital will be readily
supplied, since there Is no building or
land craze this year for the bankers Of
the country to become ala-med about.
The tendency OF business men every
where. however. Is to proceed cautiously
SO as to avoid the pitfalls which often
develop when the country is recovering
from a period of commercial stagnation !"
Thus 1T is mot to be doubted that the
banks of the country will have forceful
calls upon them for accommodation dur
| ing the early months to come. But be-
yond peradventure 1t will be found that
| the country's institutions are equipped to
| take care Of every legitimate requirement
for however distorted Wall street
| speculative talk may be. our banking in
| stitutions are in healthful form, equipped
and ready to take care of even extraor-
| binary expansion. What Is equally sure