Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-04
Market Dull, But Suggests
Hardening in Prices.
DEALS ARE NOW EXPECTED
Street Hanks Back in Expectation to
Duplicate of Vanderbilt Coup.
MOVE IN STEEL SIGNIFICANT
Reflects Appreciation in Financial
Circles of Bettering Conditions
in the Business.
BY II. ALLOWAY.

| BY II. ALLOWAY.
NEW YORK, August 3.-Aside fron, il,
GUINNESS the security market looks bet
Ter. There is a suggestive hardening
IN the prices of standard stocks. II
seems evident that for a considerable
time past operations have been quietly
conducted looking to the absorption OF
tue hoatmg supply of various high-grade
issues Professional Wall street has
dtsdained this idea, and still is disincltned
to give any particular heed to it: bu,
.nere are indications which veteran OBJ
sewers cannot ignore. And while gen.
! erahy II Is the theory that when the mar
| het does improve and grow active the
| enlarged transactions will be chiefly in
the industrial stocks (railroad manapers
| having SO long talked blue). it is mani
lest That the dividend paying railway
rs. Is sun In favor among bankers who
au.isers TO important clients. One
International banking house. indeed. is
1nis week sending letters abroad conn
seHng the purchase of all of the eastern
lrunK lines, from Pennsylvania straight
d denart' TO Erie; This is an entirely new
Gently been taken by bankers, either big
OF Httie. Upon every side there has
oeen the one chorus to wait. wait. wait,
II Is not improbable that we may soon
nave announcement of important financial
Undertakings In the interest of prominent
groups OF railroads. New York Centrars
plans are awaited with interest particu-
| lariy, Tor. though they have been some
what publicly stated, there remain undis
closed those details which it is intima /
may completely revolutionize the Cen
traIs status as corporate ina smuch
as various subsidiaries including western
merger.
Railroad Deals Anticipated.
New York Central possibilities arc ra-
ferred to as typical, for there is deem
rooted feeling in high Wall street places
that deals of great consequence have
been arranged in the recent interval of
dizziness: and equally pronounced is the
ieeiing that the official pronunciation Of
DETAILS IN such deals can have effect
OF reVivfying the market throughout-
even bring back an old-fashioned boom.
wan street always harks back in ex-
pectatlon OF duplicate of what came to
pass when William H. Vanderbilt gave
the stock exchange surprise by his pur-
| chase of the West Shore railroad. At
that time Wall street had had real hard
! times. Disastrous competition was raging
everywhere. Receiverships had become
ordinary occurrences. There never again
was gong to be any prosperity Not to
De doWncast was to be suspected Of in
sanity; and 1t all changed in a jiffy over
night Ihey who had been depressed into
utter blueness were sent forthwith into
hurrahs. The market that followed was
better than any ever hitherto known. 1t
Is not strange that Wall street likes to
consider such precedent.
business conditions now are so far diff
ferent from what they were as to forbid
any manner of comparison. The present
situation is a wholesome situation. In
practically every industrial quarter there
Is fair activity. Most branches Of trade
are quite up to what is the normal level
In iron and steel and copper, in all thin s
that have chiefly to do with metal, there
IS even such briskness now that authori-
ties believe only a little further zest
would forthwith produce boom, send ng
consuming demands far beyond produc-
tive capacity
What is admitted even by the enthusi-
asts is that manufacturers are conduct
ing present business. however, on slender
profit margin. Further expansion would
arbitrarily change this.
Significant Is the movement of United
States Steel stocks in the security mar
ket. 1t reflects appreciation In financial
circles of the lettering conditions in the
steel business, which are shown not only
IN the current report of the steel cor
poratlon, but also in information supplied
by the independent companies. So far
as the steel corporation is concerned
the volume of new business snown is
Very satisfactory, but still of more i'm
portance is the fact that prices have
substantially advanced from the basis of
three months ago. 1t is automatic that
steel in the present. as iron i'm the past
reflects more accurately than any other
industry the trend of national business
movement. Hence. this cheerful change
stimulates better feeling to marked de-
gree Its direct effect upon Wall street
sentiment is plainly apparent just now
Wall street experts always recognize the
difncultN of conducting a successful bear
campaign when the steel stocks are
strong.
Another great underlying factor is the
general excellence of the crop position
1he grain market has shown steadily de-
clnlng prices for some time, due to the
assurance of abundant wheat and corn
narVeStS. The only disturbing element
for the moment is the continuance of dry
weather in the cotton belt which, OF
course, may lind speedy termination In
any event it seems certain that a satis-
factory cotton crop will be gathered, and
that there Will be market for il at
prices guaranteeing continuing prosperity
for the south
AS often maintained in this review. agri-
cultural prosperity means national pros
perlty, tor it is the foundation OF bust
ness expansion. With good crops and re-
sultant business bettcrment political de-
velopments and technical Wall street con
ultions become of minor Importance. Wall
$500 iiocCbp tNIlCeS llQlUerenCP 10
pOitlcai pyrotechnics. There is rational
beiier that whatever the outcome at the
polls, there is no threat against the per
petuation of American prosperity. The
period OF agitation has given birth to the
period OF construction Security f1urries
may come from time to time by reason of
political sensations. but they can exert
no lasting effect so long as Wall street
and the financial world in general STAY In
the present equable frame of mind
Thus We have the inspiring spectacle
or security market which, having rid
Itself of the incubi of groundless fears
can sail along on the sea of facts, Here
in Is the simple. obvious explanation Of
the failure Of bear raids and the persist
ence of a strength not snowy. but eff
fective.
No Money Market Bupaboo.
There is no money market bugaboo this
season. One OF our great banks che
Fourth NationaD summarizes that phase
of the situation in this wise: There will
be plenty of money for mercantile bor-
rowers this fall. but it is reasonable to
expect a further hardening In rates for
both time loans and commercial paper.