The Washington times., 1912-06-23

III nOlulnB tnelr IOrCeS. Win ali tne
restlessness. however, this authority
notes that there are comparatively few
strikes, but the demand for higher
wages 10 insistent, and the entire ten
dency throughout the industry is toward
higher labor cost.
AS Is natural under the circumstances,
this tendency of increased cost of pro-
duction is reducing net earnings. The
first half of the year has been very
lean, indeed, for the iron and steel
manufacturers, and the prospects for
the second half, according to the same
authority, are far from satisfactory.
Prices have advanced, but not commen-
surate with the increasing cost of pro-
duction. Naturally, in Wall Street, this
situation is ascribed to the Government
suit against the Steel Corporation, and
particularly to the abandonment Of the
Gary dinners, which. while proper or
not, according to the way one looks at
them. certainly resulted in giving gen.
orally better results to the industry, as
to tn maintenance of prices and fair
profits to the manufacturer than the
system of uncontrolled production and
competition at present in force.
Berlin's Money Strain-Consols.
There were numerous signs OF renewed
tension in the Berlin money market
manifested both in the active borrowing
of German bankers In this city, a ship
ment of $500. 900 gold from London to
Berlin, and sharp advance in the dis
count rates at that point, but the gen.
eral belief now is that the critical period
In the German market-June 30th-when
the semi-annual settlements fall due,
will be met without rejecting seriously
on this market. What leads to this be-
lief is the extensive preparations which
Berlin has made for the supreme test
Aside from that, the strain falls at a
time Of monetary ease here and the Ger
man bankers have been able to renew
their loans temporarily to New York
bankers, and to secure additional funds
and so the day of reckoning, II not
averted, Is at least postponed.
Germany's scramble for money was In
part responsible, 1t is believed, for fore.
ing the price of British consols during
the week to a new low record price OF
75Ss, but an extensive liquidation, which
seemed probable, was checked in the
rick of time by the action of the British
treasury In letting II be known that
$l5,Ooo,Oo of the budget surplus, which
was to have been devoted to other pur-
poses, would be used for the consols re-
the very many plans suggested for ter.
minating the decline on consols. which
has become a very serious matter fol-
the government, and for all British
banks, which invest largely in the funds
Whether the plan will have more than q
temporary influence remains TO be seen.
Bonds and the Money Market.
The bond market continued under the
restraint imposed by the Chicago de.
velopments, and there were no definite
signs Of an active investment revival
This was highly disappointing to bono
dealers. for. despite the lethargic condi
tons in that division of the market, 1,
had been hoped that the huge July
| interest and dividend disbursement.
| would have a stimulating influence. Th,
totAl disbursements of the period hav,
been placed at 1854 ,03l ,2lO. compared will
| 325l. .6S9.7N. year ago. Although thi,
huge sum seems to have caused no rip
pie on the surface of the established
bond market. the manner in which tn,
$+o,OC.90 siX-year per cent convertibl,
rotes| Of the Brooklyn Rapid Transi
| Company were snapped up, indicates
that the money is not going to waste.
| The issue was many times oversub
scribed, which discloses that the tast,
| OF the community Is for higher interes
| rates than can be secured from the oIr
established issues. OF course the bank
| ing firms Offering the new B. r. T
notes were delighted with the satisfac
| tory outcome of their issue, but tn,
great questian remains unsettled, anc
| that Is, what is to become of the ole
| type of bond. which is steadily depre
ciating in price and has become virtu
| ally unstable, except at concessions
| The aggregate losses from such issue,
through declines in prices reaches
| huge total and the shrinkage is com
| ing to be viewed as a serious matter
for no one can see, in what manner {
! recovery is to be brought about Th,
| local money continued easy at on
| changed rates for both time and cal
funds. The best feature was an in
creased offering of mercantile paper
| for 1t showed a disposition of the mer
| chants to prepare for greater activi
| ty. The bank statement was void OF in
terest and attracted no attention what
ever.