Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-07-14
TRADING IS NARROW
Absence of Leading Finan-
ciers Felt in Wall Street.
MARKET is IN QUIET STATE
Trading Falls Into Hands Of Small
Operators and Il Ourtailed.
CROP OUTLOOK FAVORABLE
Forecast Is for Larger Bulk and
Greater Variety Of Farm Prod
ucts Than In Many Years.
MARKET is IN QUIET STATE
CROP OUTLOOK FAVORABLE
BY w. g. NICHOLAS.

BY w. G. NICHOLAS.
NEW YORK. July 13.-The stock
market is in q quiescent state. Day-to-
day transactions show that 1t has fallen
into the hands Of lightweights, and the
floor traders whose operations are usu-
ally of slight individual consequence,
although when moving in concert an APP
pearance Of real action IL expressed by
quotations on the tape. The con-
spicuous absence Of q largo number Of
leading f1nanciers and market plungers
is having Its effect on transient senti-
ment and tends to ouFtail trading to
within narrow limits. Possibly when
these men Of large caliber are here their
actual dealings in stocks are very much
smaller than they are commonly sup
posed to be, but their mere presence
In the financial district is an element
Of consequence. Just before sailing for
europe few days ago one of the great
market leaders said to the writer. with
show OF petulance, that the financial
writer's on the daily press and bulletin
services had given him credit for about
ten times as much action in the market
as ne was entitled to, and that he sup
posed the same was true Of many others
VINO had been accused OF heading and
managing fabulous campaigns He said
the fact Is that the bulk Of the business
supposed TO be done by few big
large number Of traders, who frequent
the branch offices in the uptown hotels
ana business blocks. or telephone their
q; orders IN at long range. This business
IS Kept up continuously, and rolls into
large aggregate volume
:. Onoouotedly general business condi-
uons are better than when stock market
prices were Ave to fifteen points higher
tnan they are at present. yet the total
transactions on the exchanges In less
than one-half as large as when every
BODY was specializing and apparently
breaking their necks to pay the highest
figure possible for what the big insiders
were willing to sell. AS stated In pre-
into an 'overbought" state. Everybody
bought stocks, and then after the demand
mad been fairly well met the multitude
nous purchasers sat back and waited for
somebody else to come along and mark
up the goods 80 that they could sell out
at a profit. This looked all right in the
DRY, but didn't work out The market
got topneavy, began to wobble and then
70 break. There were occasional active
DAYS on the way down, but for the most
part the DRIFT has been slow and the de-
cline uneventful. Stocks came out on
exhausted margins or were unloaded by
disappointed bulls whose plans of mid
summer profits had gone awry. 1t is
also noticeable that there was consider
able distribution of securities by the
many small holders who didn't IKE the
political situation or needed their money
Tor other purposes. It must be remem-
bered that to many tens Of thousands of
men the stock market is a savings bank
in dull times.
News Is Encouraging.
The bulk of the news that comes into
Wsil street is of the encouraging sort.
Private and official reports as to crop
conditions are in substantial agreement
The agricultural outlook is exceedingly
favorable as a whole, and the forecast is
for larger bulk and greater variety of
farm production than in many years.
It would not be surprising il the total
valuation Of all the crops Of 1912 will be
greater than ever known In our national
history. Foreknowledge of the probable
huge aggregate value Of farm products
has become mighty stimulant to the
courage OF business men generally, and
they are already moving to expand their
enterprises and branch out. To this fact
Is undoubtedly due the slow hardening of
the money market. New York banks are
discovering that they made a mistake in
the time large demands upon them would
curtailing their stock market loans to a
very considerable extent This is one
Of the things that have forced commission
houses to shorten their loads and make
demands upon customers. which in the
end compel bulk of liquidation. Local
money rates have advanced, and the
banks are gently pulling in their funds
from all directions. The pressure has
not been severe SO far and probably will
not be. but 1t has nevertheless been a
M INN h.
last week or two. In dull times banks
are apt to get careless and over-extend
their Wall street loans. This is what
they have been doing during the late
spring and early summer months.
The report Of the United States Steel
Corporation showing untitled orders on its
books for $780,, 600 tons was for some
unexplained reason given q bearish con-
struction. It is explained that the steel
companies are nearly through with their
period OF depression. and that from now
on net earnings will be larger. There is
nothing new in this, however. and trad
ers who specialize In steel stocks do not
become enthusiastic. 1t was upon this
prospective development that most of the
buying of steel stocks on the upward
movement was done. The improvement
appears to have been discounted In the
advance which eliminated week or two
ago. Steel trade authorities do not agree
as TO the future OF the steer INDUSTRY.
One set of wise men are buoyant in the
faith that the Industry is going from
good to better, and that in another six
months or a year will see great boom
in that division Of activity. Another set
Of wise men hold that not only iron and
steel. but a great majority Of other in
dustries will be depressed until the tariff
is revised and the worst is known In that
respect. This theory is based on the as
sumption that the White House and Con-
gress will be carried by the democrats
next fall, and that the revisionists will be
IN full control. This sentiment appears
to be growing lately in Wall street-ever
since the Baltimore convention, in fact.
Statement Of Railroads.
Various unofficial but authorized state
ments of the earnings Of railroads for
the fiscal year ending with June are be-
ginning to find their way into circulation.
One of the first is the Baltimore and
Ohio. That road had a wonderfully sat
isfactory year, considering the handicap
under which all transportation compa-
MES have been laboring. It's gross earn
ings are said to have been fully 81 900, 900
greater than the year preceding. and it's
net earnings a fraction above per cent
Expenditures on property and in mainte-
nance have been on very generous
scale. Practically all Of the eastern
trunk lines and other systems in the
eastern territory which do not quite
reach the classification Of trunk lines are
also doing we'll. Norfolk and Western
takes the lead among the smaller roads