The sun., 1912-08-04
FINANCIAL NEWS
! AND COMMENT
Early Strength in Stocks Neu-
tralized by Evening Of Con-
T. tracts in Last Hour.
A GOOD BANK STATEMENT
Increase Of 81, 200, 1000 in Sur
plus Reserve-Wide Break in
COttOn-The Weeks Trend.

Stocks advanced buoyantly In the
early trading yesterday. with the
leadership again assumed by Great
Northern and Northern Pacific. which
sold higher than at any other time OF
the year. High priced industrials such
as American Tobacco and Sears
Roebuck were also conspicuous. the
former being affected by reports OF
increase In dividend. In the last hour
most OF the early gains were lost and
the market sold of rather easily.
though nothing more important than
the evening Of commitments customary
at the weeks end was noted In the sell
ing In that hour the market was less
active, but on the day the turnover
showed q very satisfactory amount of
business for a midsummer Saturday
Transactions aggregated ISL 900 shares
more than three times the quantity
traded in on the previous Saturday.
The cotton market was intensely active
and Indicated a revision OF the esti-
mates deduced on Friday from tho
Government report. Prices broke more
than 81 bale until at the close the
average was considerably below the
level maintained before the puhlicat ion
Of the report. The bank statement was
more favorable than expected in view
of the fact that the banks have only
3rofitcd slightly from the return Of
the August disbursements. Surplus re-.
serve increased si.l50,000 and now
, stands at s2O.399, 900.
The week opened with an absolutely
stagnant market and closed with one
fairly active as compared with ordinary
times and extraordinarily active as
compared with the days Of July. on
Monday the commission houses had
little or no business from outside GUS
TONERS. and on the following day,
wheD only 126,oo0 shares changed
hands, less interest was displayed in
securities than on any other day Of
the summer. From that time until
} the close of the week there ensued a
change both decided and encouraging
Trading quickened, the market broad
ened out. leadership was taken BY
, standard investment stocks and specu-
lators and investors who had been pcr.
picked over the backwardness of the
security markets In the face Of a sue
acssion Of favorable developments went
into stocks and bonds again with con.
f1dence Apart from Canadian Pacific
which sold at much higher prices than
ever before Ia the Accompaniment OF
statement Of record earnings leader.
ship was taken by Great Northern. Nor.
thern Pacific. ST. Paul and other shares
cf the best known grain carrying roads
and presently standard shares of rail-
roads in other sections participated in
the upward movement and most OF the
industrials kept pace with II. In the
closing days Of the week the market
, was subjected to the test Of abscrbIn
reaii2inE sales in great volume and
withstood the test very well. with the
result that net gain of about . points
over low prices Of the week was scored
IN the average Of the statistical rails
ana many Of the active stocks and
also or the speCialties did considerably
better. AS far as the attitude Of men
more or less in the habit of dealing in
STOCKS was concerned II appeared To
ne inc case that most Of them had
ncen watching the market closely in
anticipation of indications Of n definite
trehd. such indications being afforded.
'he! appeared To consider that the
period OF waiting was over and that
'ne time had arrived for Conv ersion Of
opinions regarding business PROSPECTS
INTO investment or speculation
The weekly trade reviews said that
favorable reports had been received
from all sections except some parts
"t the South. Those reports colncidea
with the crop reports. Except from
some portions of the South there came
Inc most optimistic expressions on tho
crops. Cotton, in other words. was
the only crop in regard to which doubt
was entertained. and il cannot be said
that the Government crop repor, on
Friday served to relieve the apprehen.
sions over the Couutry's great money
crop. On reduced acreage IL showed
percentage Of condition considerably
less than that reported for the end OF
June and far below that Of the CORE.
spending date Of last year, but there 10
no doubt whatever that conditions hovo
greatly improved since May o5, the date
as OF which the Government renort
WAS compiled. Tho rains In the eastern
portion OF the cotton belt have since
been succeeded by sunshine and IN.
drought In Texas has been broken No
such crop as last years record of 1G.
200,000 bales can be expected, but there
~ a fair chance Of "A yield between
13,O00,00O and 1900 900 bales. which 4.
well above the average. High prices
Tor the cotton options may he relied
upon to stimulate most careful atten-
tion to cultivation and harvest and en-
courage the hope of a good yield. The
week was highly favorable to the prog
fess Of spring wheat and corn. The
winter wheat crop Is probably some
what In excess of 10000. 000 bushels
Records may have been broken in the
yields Of oats and barley. Spring wheat
1s now too far advanced to sustain
much damage and granting average
weather bumper crop OF corn and a
good crop of cotton may be anticipated
The copper metal market was firm
throughout the week and the steel and
iron market considerably stronger, In
steel II was another week of advanc-
ting prices. The lead was taken by the
Republic Iron and Steel Company in an
advance Of 81 ton In bars. the second
advance OF the month on the same
product and Of the same amount, and
this advance was followed by advances
In barn. plates and shapes by most
of tho companies The United States
Steel Corporation report Tor the quar-
ter ended June 80. showed earnings Of
cog nm mn and III. cnrpinu 10 bath