Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-11
BANKERS PLAN FOR CROPS
Demand for Funds for Moving Pur-
poses Expected to Be Great.
CUTTING OF BIG MELONS
American Tobacco Company Dis
tributes Dividend and Another
Is Looked For.
BY w. G. NICHOLAS.

wood this week, and there is now ap-
parently clear sailing for the stock mar
ket. All of the presidential speeches and
letters of acceptance have been given out
and are in process of digestion. The gov
eminent crop report has been ms e
known and confirms private estimates of
excellent crop conditions. 1t is now a
nearly established fact that the agri-
cultural output will be the largest on
record from money value standpoint.
There is greater diversity of produc-
ton than ever before in any one YER.
This statement may be a little premature
as to spring wheat and corn, neither of
which is entirely hey ond the danger line,
but the period of maturity is near enough
at hand to make estimates fairly safe. \
severe and general frost before the first
of September would do a great deal of
damage, but the season has been SO
splendidly favorable and the outlook is SO
uniformly good that the element of dan
ger is hardly taken into account at this
writing. General business-and that
phrase includes practically every branch
and division OF agriculture, railroad,
trade and commercial activity-may be
described as exceedingly favorable. That
is about all that can be reasonably asked.
1t is what the stock market has been
waiting for. and there would appear little
now in the way of general further i'm
provement-simply progress.
For that and many other reasons the
stock market situation has assumed a
wholesome appearance. 1t does not fol-
low from that fact that we are going to
have a tremendous stock market boom
right away. but fundamentals are GER
tainly solidifying and confidence is be-
coming restored. The money problem is
| likely to be of greater Importance from
now on than anything else on the boards.
The banking interests are confronted
with the necessity Of financing an enor-
nous crop and of providing for an In
creaSing demand for fun to conduct the
expanding general business of the nation.
They are handicapped at the moment by
the fact that a vast capital Is locked up
in unsold bonds and shOrt-time notes
still undistributed. There are many hun
dred millions of dollars represented in
undigested securities, the market for
which is stagnant. Investors are de-
manding better return on their money
than they are able to get in the fixed
investments now in the market. New
bonds must yield AZ to per cent. where
as a few years ago 31a to per cent
bonds found ready market. Bonds have
been steadily declining in price for years
the shrinkage keeping pace reversely with
the initiation of gold. Just where this
strained condition will end is a question
which financiers and students are just
now avoiding. They do not like to excite
the public mind on the question, lest the
public stop buying bonds altogether
Tobacco Company Dividend.
An incident of the week was the dis
trbution of 20 per cent extra dividend
to stockholders in the American Tobacco
Company, the total amount passed out
being SS,OOO,O 900. This sum represents the
proceeds Of the sale of subsidiary proper
ties under direction of the courts in the
carving out of the mandate of disSolu-
ton. Stockholders are promised still
more ''plums," there being considerable
additional property which Will nave 10
pass through the process Of liquidation
Since the trust was officially smashed,
it's securities have greatly increased in
market value and the profits OF the bust
ed combine have phenomenally increased.
The same is true OF standard Oll, only In
a larger degree. The increased values
there as measured by quotations now
and before the dissolution, foot up at
least $3.50, 100000. Consumers are paying
more for Oil and its by-products than at
any time in many years.
The next big melon-cutting on the taps
is International Harvester. Although it
is a foregone conclusion that the big
trust will be put through the form Of
dissolution, its stock is strong and the
belief is voiced by it's friends that the
quotation will go to 200 before the actual
ten years old and in that time has filled
it's treasury to overflowing with cash and
added enormously to the value of it's
other assets
There is no branch of industry N which
is seen greater activity in development
and expansion than in the manufacture
and utilization of electrical machinery
The uses to which electrical power are
beng applied are multiplying at rate
not understood by the general public. The
tran Of electrical n
distances is attracting capital to original
sources of supply-water and cOal-as
never before. The day is in sight when
the latent heat and energy now dormant
in the great coal mines of Pennsylvania
and West Virginia will be transmitted by
wire instead of being carried on freight
cars Private money is going into this
line of enterprise by the tens Of millions
of dollars. One plant that will cost $15.-
OW.0O is approaching completion in one
of the soft coal districts of Pennsylvania
within about $50 miles of New York The
money was subscribed by small group
of wealthy men without recourse to any
of the usual methods of raising capital.
This is only one instance among many
although it is probably the most extensive
among those being put forward under
cover" as one might say.
Feel Security and Confidence.
The sense of security and confidence
that is now felt In the stock market is a
very decided contrast with the situation
down to very recent date. Many I'M
certantes and disturbing factors have
been removed. Investors are seemingly
content to hold what they have and re-
vved speculative interest is being eX-
hbited in many quarters This improve
ment in sentiment Is not as yet expressed
in important advances in stocks, and it
may not take that form until the political
campaign is further along, but the drift
is that way. Now that there is more
than a living chance of tariff revision
speculative fervor in the industrial list
may diminish somewhat and be retrans-
ferred to the railroad stocks. Many of
the rails are low in price when earning
value and future development are taken
into consideration. There may not be
any tremendous advance in the stock
market Immediately, but it looks very
much as though the situation is safe from
serious repression.
The money situation has not changed
in important particulars except that for
eign advances indicate more ease and
comfort in Germany and Great Britain
Now that appropriations have been Sc
cured for the new battleships that were
demanded, war talk has stopped 1t will
routine of affairs. but for the time being
of buncOmbe.
COTTONSEED OIL.