Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1912-09-07
THE STOCK MARKET
BY Hugh M. Creighton

Discount rates have gradually adj
vance dboth at home and abroad dur
ing the past ten days. This has result
ed in the Bank OF England raising its
discount rate from per cent to per
cent. In New York the preference on
the part OF bankers is for call loans,
there is little demand for commercial
paper. Germany has again been seek
ing to discount paper in the New York
market but with little success. France
seems to be the only nation in posi-
ton to advance money in volume out
side of her own territory, New York
bankers, to maintain their surplus,
may have to resort to a general call
ing of loans. High rates in London
would seem to foreshadow further
advance in rates here.
THE STOCK MARKET.
The market is apathetic, price chang
es are limited and the volume OF bust
ness is small A close study Of the
technical position of the market dis
closes only a nominal short interest.
The tendency on the part of investors
is to sell minor holdings. This causes
the market to lag. Taking into account
the general conditions surrounding the
market it would seem highly probable
that any calling of loans must neces-
sarily cause a recession in prices. For
the time being the financial situation
is the controlling factor. An active
financial period lies Immediately
ahead. There is a worldwide demand
for money to carry on commercial and
industrial business. Fer this reason
rates are advancing. The tendency in
the United States will no doubt be
towards higher rates until the money
from our agricultural production be-
gins to return to the usual channels.
A severe strain will be put upon bank
ers this year to provide the money
to move the crops. Our agricultural
yield Is much crater than last year
and in New York the banking surplus
Is only about one-half of what it was
a year ago. One of the most important
questions to decide at this time is to
what extent, If at all, hgih interest
rates will affect stock market prices.
1t would seem to me that the money
strain will be only temporary. The
first of October should see financial
conditions returning to normal. This
being true, the dividend paying stocks
should prove profitable purchases after
the first wave of selling as result of
financial conditions has spent itself.
ANSWERS TO INQUIRIES.
Railroad Equipment shares.--Such
issues as Railway Steel Spring and
American Car & Foundry shares are
in line for higher prices For three
years the railroads have bought lit
tie new equipment. This years large
crop yield has brought home to the
railroads the fact that sufficient equip
ment must at all times be maintained
to handle their business. The result
has been large orders for equipment
during the past thirty days. 1t is
stated that both of the above compan-
well into the winter. This activity is
bound to result in large earnings. |
believe either of these issues can be
purchased now with fair chance OF
making a splendid profit from doing
so.
DistiIiers' Securities.-This com
pany pays per cent on its common
shares and is earning about ga per
cent. The recent activity in this issue
has given rise to rumors that there
will be an advance in the dividend
rate. The stock is good speculation
at the present price.
Texas. Oil.-This issue pays divi-
dends at the rate of per cent Earn
ings on the stock for the past year
were equivalent to about per cent.
The present high price for this issue
does not seem to be justied. The adj
vance would seem to be more the re-
suit of pool manipulation than intrin-
sic worth. l would not advise the pur-
chase of this issue.