Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-10-13
RECORD CROP YEAR
BuIIiSh Effect on Market Has
Been Great.
KEEPS STOCK PRICES UP
Every Industry in Country Throb-
bling With Activity.
SPECULATION AS TO TARIFF
Interest in Campaign Is Increasing
Daily-May Escape Pre-
Election Panic.
BY w. q. NICHOLAS.

BY W. q. NICHOLAS.
| NEW YORK, October 12-Balkan wars,
tight money and national politics may
! temporarily depress the stock market,
but nothing can long overcome the bullish
effects Of the greatest crops ever raised
in this or any other country The gov
eminent in the report of it's Agricultural
Department this week gives official con-
| firmation Of the most hopeful estimates
that have been given. The highest au-
thority places the production of the three
| leading cereal crops at 5,153, 100000 BUSH
| els, having a value at current quotations
of 300. OOO. 900.
| The increase over last year is 100, 900, =
coo bushels. Corn again crosses the 3,OOO,-
100000 bushel line-the second time on rec
| ord. Wheat yields 100 600, 900 bushels and
| oats break all records. with 1417, 900 900
bushels. Fruits. vegetables, hay and
every other production on the farm mark
| new figures. 1t Is the greatest year for
| the farmer in the history of the United
States. and. for that. matter, in the
history Of the world.
VI what account are politics, comic
opera wars in foreign countries and the
face Of such stupendous domestic pros
perity. The crops of 1912 represent the
creation of nearly $4,000, 900 900 of new
wealth 1t is not all profit. of course
put the values are there. They spell
reduction in the high cost of living, and
speak for wholesome. general improve
ment and advancement in all business
quarters. They mean good times They
put solid foundation under the boom
which everybody feels is beginning-has
begun-for 1t is here.
Liquidation Is Extensive.
1t has been very difficult to put stocks
down and keep them down in the face of
all this prodigious national prosperity
mere was extensive liquidation and
profit-taking on the late advance in
prices and a reaction of to 6 points oc-
Cured. but below that it was seemingly
impossible to crowd the market There
was complaint that the public had quit,
and would buy no more until after the
election. or until after the banks were
again In an easy position. This state
ment was partly true and partly a mis-
take. The public was not out of the
market by any means. but it was not in
the business of making high prices for
SPECTATORS to shoot at. and for traders
to unload their long stocks on.
The public has become wise to stock
market methods and rarely buys whole
sale on the booms. 1t has been educated
in that respect. and having paid dearly
for its experience, is at last prOfiting
thereby. The public these days sells on
the bulges and buys on the reaction. 1t
has acquired mercantile sense in that
regard. The halt that took place in the
market was entirely legitimate and can
not be construed as meaning that the
bull movement has come to an end The
general situation is too strong to admit
Of any such possibility.
Big Volume of Stocks.
The volume of stocks thrown upon the
market as a result of the calling of loans
by the banks around the first of October
was much larger than commonly esti-
mated. This fact was shown by the bank
statement and by the status of the broker
age and commission houses on the ex-
change. The process of digestion of the
big load has been slow and has aroused
considerable pessimfsm among those
whose minds are trained to look at the
bad side of affairs. 1t is a fact however
that on every reaction or soft spot in
the market waiting orders" in large ag-
gregate bulk are encountered and the Se-
patient hands. These stocks are not likely
to come out again until there has been
another important advance. The lower
prices go on casual depressions the great
will go when real recovery takes place.
Banks are not yet encouraging an inn
mediate resumption of bull campaign.
They prefer to wait until they can see
of Wall street. The demands upon their
resources for crop moving and other le-
Ultimate purposes make it for the mo-
ment rather difficult to supply Wall
ton. At the same time the daily total
Of sales on the stock exchange shows
that the public is maintaining lively in
terest in current action. and is not going
to sleep. despite claims Of incipient stag
nation.
Prosperity Is General.
The burden of news that comes in from
every direction is extremely bullish
There Is not a discorcant note Every
industry is throbbing with activity.
Manufacturers are having a hard time
filling orders. and consumers in many
directions are paying premiums for i'm
mediate delivery Of goods. The steel
industry Is holding the lead and promises
definite period. All of the steel COM
panies. big and little. have about worked
off their lower-priced orders and are
getting into profitable season From
way favorable.
Several important Independent COM
panies that have been straining and tug
ging under pressure for two or three
years are seeing daylight and their stock
holders are being given to understand
that dividends are again in sight where
none have been paid for long time. and
that existing meager dividends will be in
creased There has been strong buying
Of independent steel stocks on these ex-
pectations, and substantial advances have
been made.
The hope is entertained by hundreds of
thousands of holders of stocks in the
steel companies that the advance in
prices has only commenced. There is
certainly a very strong bull feeling in
the steel stocks, and for that matter in
every allied industry in the metal class.
Railroads Are Busy.
Railroads are put to 1t to handle the
traffic that is pressed upon them. They
could use great many more cars than
they have. and. If they had better term
inal facilities. it would be good thing
for the business of the country. How
ever, this is a deficiency which will be
overcome in time. The equipment COM
panies are pushing out new rolling stock
to the utmost limit of their capacity and
that is saying good deal. Production of
freight cars iS now going on at the rate
of about $4,000 cars a year, and already
at least one important cOmpanv ia get |