Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-07-22
THE MARKETS.
Banking Position Stronger
Grain Reports Good.
Corn, Hay and Oats Also Promise
Unusually Good Yields.
New England Cotton Mill Strikes OF
Course, Effect Dry Goods.

New York, July 21.-With the bank
ing position reinforced and with good
news of the progress Of the grain crops,
speculative sentiment in the stock mar
ket, last week, turned hopeful and n
sustained uplift of prices resulted. The
bank statement at the end of the pre-
cedine week had disclosed n restora-
ton OF the surplus reserves over the
legal requirements and there was no
further pressure, last week on bor-
rowefs such as was resorted to the pre-
vious week in following out measures
to correct the deficit. The casing of the
call money rate did not remove all APP
prehension that further demands on
the market would have to be provided
for to the prejudice of speculative en-
ployment of funds.
1t was kept in mind that the time is
approaching when resources have to
be provided for removing the crops
The very news that encouraged senti-
ment by its showing of growing prom
Use of 2 liberal yield carried its corol-
larry of increased money requirements
tc market the produce of the farms.
The same is true of the symptoms of
revival of trade which continue to fig
uit III tiIt iiollSIui pIOSnOSilGallGD pA
speculation.
The sensitiveness of foreign money
markets makes it evident that incraas-
ed borrowing in this country such as
would entail a recall of credits now
outstanding with foreigners might Gre
ate serious disturbances abroad Last
week saw private discounts rising in
all the great money centers of Europe
and the high rates for foreign exchange
in New York testified to the pull Of
those conditions on New York banking
| resources. successive low records for
British consols We're established in the
London market under pressure of Ii
| ouidation from holders committed to
! other obligations. notably subscrip-
| tions to new issues left in the hands of
| underwriters. This unreiieved non-di-
gesticn of securities is a burden, the
| effects of which are transmitted to
| all other financial markets. Banking
authorities also keep in mind the pos
| sihle peril of credit imitation in Ger
many resulting from the prolonged
expansion of all forms of enterprise.
| The brilliant showing of this country s
| foreign trade for June and for the ifs
| cal year completes the record of the
strong financial position held by our
mony market in the international
/ clearings eff the world Except for cot
! ter reports of crop prospects, last
week, carried promises of high prosper
! ity
/ Excellent growing weather for corn,
Ioats and hay gave assurance of a cure
| at work for deficient feed supplies for
/ livestock.
| The condition of spring wheat also
gave confidence in a rectifcation of the
damage wrought by two successive
years of shortage of that crop. Trans
| continental railroad stocks seemed to
get some advantage from the turn of
j events away from the likelihood of ex-
/ emption of American eoastwise TOM
F! age through the Panama canal from
payment of tolls
| The favorable crop promise added to
the indicated needs Of, the railroads for
new facilities.
Railroad equipment industrials in
| luGing the steel group, were affected
/ by this prospect. The need for more
cars. locomotives and other forms OF
equipment and supplies would insure
| further activity in the steel industry
| ne iuli ~ piesSHt Ttppfttu III new or
ders following the heavy advance buy
ing before prices We're raised, was
PASSED over in view of this future
promise Copper trade sentiment was
perhaps less confident
Labor troubles in the New England
textile mills made an obstacle in the
dry goods trade. The hearings for the
arbitration of the demands of the
Eastern railroad engineers are closely
followed on account of the wide scope
CT the questions involved. The keen
demand for labor in the steel trade and
in the harvest regions color the domi
nant impression of labor conditions