Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-18
BUYERS ARE ACTIVE
Stock Market Now Like Great
Army in Motion.
STEEL Is HOLDING FIRM
Common Is Now Just Where It Was
in August Two Years Ago.
RESULT OF TRADE ABROAD
Acts AZ Insurance In Event Of Slump
in This Country-Prices
Generally Up.
STEEL IS HOLDING FIRM
RESULT OF TRADE ABROAD
BY W. q. NICHOLAS.

NEW 1Ofkh, August 17.-The stock
market is like a great army in motion
an army just coming out Of winter en-
campment. The purpose IL conquest
From the preparations that are making,
the campaign gives fair promise Of being
spectacular in final results, and most
likely In intermediate performance. The
spirit OF speculation II again alive. The
market shows 1t. It has been dormant
TOT q long. long time, or at least unde-
cided.
Steel common at around 70 and "a is
| just where 1t was In August two years
ago. During tho interval It has gone up
into the eos and dropped back to So 1t
| Is now about midway between the two
extremes and Is apparently on q decided
| upturn. The iron and steel industry
gives every promise Of continued activ-
ity on q great, big. broad scale The
mills and furnaces have about worked of
their low-priced orders and are getting
on comfortable ground. The course from
now on will be upon a plane that will
| insure good profits. unless something I'M
toward happens that cannot be fore
! Swallowed. A few years ago Mr.. Schwab
expressed the decided opinion that within
ten years United States Steel Corporation
would be earning $3.50, OOO, 900 q year net,
that the common stock would be selling
at 200. and that the domestic production
and consumption Of steel would exceed
80, 600, 600 tons q year.
Since then we have undergone a
period OF very serious depression. and
the steel companies have endured a
very hard time. Some Of them were
not able to make both ends meet, and
the big corporation itself went through
several months when 1t was not earn
ing dividends on the common stock. It
once had to borrow $3O,0O0.0O0, SO
heavy had been the drain upon its re-
sources. Working capital and quick
that hurt. An immense amount Of
ready money is required to finance the
current business Of the corporation
and take care Of the fabulous for
cessfully compete with foreign steel
mills. not only was 1t necessary to
sell products at a low figure. but also
carry contracts through a period OF
months. 1t Is a slower process than
the domestic end of the sales feature.
But once having secured that enor-
nous international advantage 1t was
worth almost any sacrifice to hold it.
Wisely. the steel trust decided to make
this sacrifice and extend rather than
curtail foreign business. 1t was
saver during the period OF depression,
and is good insurance to maintain.
Need Of Foreign Trade.
Every other Industrial Of the first
magnitude that is out for foreign trade
has been obliged to do the same thing,
and the result has been unquestion-
ably advantageous on a colossal scale.
as witness our export Of more than ST.,
600. 900. 600 worth of manufactured goods
during the last fiscal year. There are
dozen or more big manufacturing
corporations in this country that have
followed fha QYQnn1o get nv fh0 steel
trust to the very best OF their ability
and to the extent of their resources.
To build up this trade and hold 1t our
manufacturers have been obliged to
meet the foreigners on their own
ground and at their own prices. They
have been doing business on q free
trade basis. Discovery Of the fact that
this can be done SUCCESSFULLY has gone
which so long held our industrial in
terests in AFFECT alarm. It has modified
to a very large degree the prejudice
against tariff revision in quarters
where heretofore there has been
strongest opposition. 1t has Gained
the money centers as well as the in
dustrial interests The effect is seen
in the stock market, and 1t is one Of
the causes that contributes to the
present growing feeling Of confidence.
which has become tangible enough to
feel.
The course Of the market this week has
been generally upward. Reactions have
occurred, Of course, but the tendency has
been strongly defined and the tide is ris-
ing. A rather uncomfortable feature has
been the extreme activity in specialties.
Untried and unseasoned industrials and
semi-mercantile companies have been
churned with great industry. Stocks that
appeal to trained veterans on the ex-
change as frivolous meet with astonishing
popular favor The question of merit or
value seems Of minor Importance. The
overshadowing desire is to get into some
thing where the gambler can get quick
action. 1t is a halcyon season for cheap
manipulation. There is almost a craze
for speculation in unsafe things. Men
who will not put their money in standard
securities will jump unhesitatingly at
the chance to lay a bet on stocks and
things they know nothing about and
which are the rankest OF CANDLES. II the
craze continues there will inevitably be
La grand smashup one Of these days. When
at 500 q share, and investors hesitate to
put their money in stocks like Pennsyl-
vania Atchison and Baltimore and Ohio.
there is surely a screw loose. But that
may be only one Of the phenomena OF the
beginning of a grand speculative boom
which Is Just now beginning according to
the belief Of four people out Of five you
meet.
Enthusiasm Over Crops.
Nothing has occurred TO Qampen en-
thusasm over the splendid crop pros
poets. Not only will there be enormous
agricultural yields. but the railroads have
made arrangements to carry the in
creased tonnage which will ensue. The
railroads and big shippers throughout
the country are getting in close touch,
and concerted and probably successful
effort Is making to keep the track clear,
SO as to allow the movement Of the crops
without blockade or serious interruption.
There is a better understanding with re
gard to the handling Of tonnage during
the next few months than ever before.
Railroads expect to be able to move more
traffic and do 1t more smoothly than in
any year in their history. The strong
roads have the equipment and terminal
facilities for overcoming almost any
emergency. The trouble will be with the
weaker roads, which are short on rolling
stock and have inadequate facilities at
important points. 1t is going to be q rec
ord breaking fall and winter with the rail-
roads and the stock market is showing
the hopefulness Of the railroad man
ayers.
The market has been broad and active
all week Sales have averaged about
900 shares a day-not one Of those
great, big smashing boom markets, but
generous swinging action which Is en-
tirely satisfactory and which expresses
awakening enthusiasm. The market has
had to take a great deal of long" stock.
most Of it representing securities sold by
no h,rl1s Uh0 had haen holding them