Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-07-29
Stock Market Between Two
Fires Business.
Outlook and Political Influence
Corn and Oats Looks Good.
Foreign Politics Play Part in Con-
dition OF the Market.

New York. July 2S.-Last weeks
stock market seemed to be held be-
tween the opposing influences of the
promising business outlook on the one
hand and political uncertainty on the
other. Fear that the latter will them
selves affect the progress of business
revival gave them cumulative force
IN the speculation. Publication of the
bills to be offered to Congress as a
result of the Stanley committees in
vestigatien of the United States. Steel
Corporation had the effect of Undue
ing a summing up of prospects for
legislation and of programs of party
policy. The consequences involved in
a change Of control of the government
and the effect on the tariff, the bank
ing system and the policy toward cor
porate combinations came into more
Immediate consideration than has APP
peared up to this time. Foreign poll
ties also played a part through the
effect produced by the discussion of
the British naval program in the
House of Commons.
Business expansion seems to be in
dieated by the signs usually relied
upon. The stock market shows sensi-
tiveness to crop prospects as the criti-
cal stage for the harvest approaches.
Reports of black rust damage to
spring wheat caused depression in the
early week and the strong recovery
of stocks of railroads in that region
witnessed to the relief felt by later
correction of these reports. The
trowing assurance of a bountiful yield
of spring wheat promises to rectify
the harm of two preceding seasons of
shortage.
The favorable corn and oats pros
poets also promise strengthening of
the business fabric in the very points
where it has been weak. The gov
ernment report on cotton. this week,
is awaited with solieitude, owing to
the probable decoration during the
month
The week also promises the quarter
ly report of earnings of the Steel
Corporation. Its influence on specu-
lation may have to be reekoned with
in spite of its showing of past rather
than present conditions. The fact that
average earnings per ton during the
half We're the lowest since the forma
ton of the corporation will have to
be balanced against the fact of the
present rate of production being at
high water mark. The effect on the
earnings of prices already increased
or TO be increased remains for the
future to determine. Immediate en-
| ergies in the trade are all directed to
effeeting deliveries on the enormous
| tonnage of orders already booked.
81 1
bars and plates for prompt delivery
are held to show that leading inter-
| ests have oversold their capacity. The
| hrmness of prices, therefore, is not
affected by the fact that new busi-
ness is said to be considerably under
| the rate of shipments.
| The copper market also was firm. Dec
| laration of an extra dividend of 80 per
cent. to be paid in new stock by the
General Electric Co, was regarded as
corroborative evidence of prosperity in
| industries that consume copper.
| The shaping of events toward more
active demand for money comes in for
| consideration. Western banks are re-
| ported to be we'll loaned up, owing to
| the demands of merchants, even in ad-
vance of the Withdrawals of currency to
move the crops 1t is believed they have
| marketed holdings of short-term notes
| to replenish their balances with New
| York banks, to be drawn upon to meet
| the coming crop moving needs. The
movement of currency. now near at hand
| is counted on usually to take s50,0o0,O0C
| to s75,00o00o of legal reserve money from
| the New York banks. Those banks. there
| fore. are placing financial bills in Lon
don in anticipation of this demand, to be
repaid at the time when crops are re-
ported. The placing of these finance bills