Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-08-05
Speculative Sentiment De-
Tives Encouragement.
Business al Stock Exchange
Expands on Rising Prices.
Corn and Cotton Not So Satisfac-
tory.-DIscount Rates Easier.

New York, Aug. 4.-Speculative SEN
timent in the stock market, last week,
derived encouragement from various
sources financial, industrial and po-
lItical. From all of these the balance
of influence turned toward the hope
full side. Business at the Stock Ex-
change expanded on rising scale Of
prices to the largest days total, since
the early months of the present year
The rise in prices had the effect OF
dislodging some bear accounts, winch
have been encouraged to persist by
the influence of the market, IN face
of previous factors. The higher stages
of the advance. on the other hand,
brought in some realizing sales OF
dormant accounts ON the long side
The dominant influence of the crops
was perceptible in the proportionately
greater advance of railroad stocks IN
the Northwest, where the subsistence
of the fears of black rust damage TO
spring wheat frightened the prospects
of a prosperous year. Maintenance of
the st. Paul dividend was interpreted
In that sense. Enlarged estimates of
the total wheat crop resulted from the
Improvement in spring wheat.
Corn and cotton advices were not
so satisfactory until showers in Texas
indicated a check to the deterioration
in cotton. The governments condition
report on cotton as of July 70, show
ing decline of 40 points in month,
Il was feared did not measure the
full amount of damage as reported.
A large aggregate of credits is in
yolyed in the position of stocks.
The features of the money market
are an easing of discount rates abroad
and a decline in the foreign exchange
rates in New York. Expectation that
gold might be exported from New
York passed away. How far these eff
fects were the result of placing f.
nance bills abroad by New York bank
ers was a matter of conjecture. De-
mand for time loans and increased Of
ferings Of mercantile paper made
higher rates in those departments OF
the money market. Ease in call mon
ey may be explained by the policy OF
the banks of adding to their resources
in hand or subject to recall on de-
nland The showing of the june IL
Comptrollers Digest carries warning
to caution. with its percentage of
surplus reserve at the lowest of the
corresponding period for many years
past, 1910 excepted. The process of
correction. which followed in that
year. yielded consequences unsatis-
factory to recall.
The ysieelstrade has commanded at
tention in the Industrial world. Price
advances were reported and prom
ineht tf9de authorities united in pro-
nouncing Indications for percent pros
perity. United States Steel second
quarter earnings equalled expectations.
The balance after payment of the
common stock dividend for the quar-
ter, however was small and the in
cursion on surplus to pay the first
quarters dividend remained to be
made up. Also the second quarter
enlargement of appropriations for up
keep was considered moderate, in view
of the furious rate of activity main
tanned In production.
June net earnings of railroads show
ed improvement. Completion of hear
ings in the arbitration of Eastern rail-
road engineers demands was followed
by a quieting of the appeals of rail-
road officials against alleged threat
ened disaster.