Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-13
BUSINESS IN NEED
Of FREER CAPITAL
Difficulty of Marketing New
Issues Casts a Shadow
Over Market.
NECESSITIES OF EUROPE
ABSORBING ITS SURPLUS
Falling Off Of Foreign Trade Is I'm
pairing Banking Credits of
the United States.


the fore in securities markets. and its
obvious difficulties have discouraged
speculative sentiment. The terms an
nounced for various new issues, although
not large enough even in the aggregate to
make formidable burden on the mar
ket. were so significant of the general
condition that a widespread effect was
produced.
The sale by st. Paul of SIC, O0OO 600 of
Az per cent bonds under a mortgage
hitherto and New York Centrars sale Of
one year per cent notes at frac-
tional discount, served as notice to the
investment community that the scaling
down of valuations for fixed interest
bearing securities must be carried
further.
Railroad Bonds Suffer.
Nearly all high grade railroad bonds
were affected, the per cent issues es-
pecially so. Heavy selling of the new
Baltimore and Ohio convertibles follow
ing the dissolution of the underwriting
syndicate and weakness of Pennsylvania
shares, when an offering of $45,000,OO0 of
new stock to present holders at par was
announced, emphasized the lesson.
In London underwriting syndicates are
left with large proportions of unsold is.
sues on their hands. In Paris a sale Oh
new government railroad bonds calls for
a readjustment of prices of other high
grade bonds similar to that in New YORK.
The condition. therefore, may fairly be
called worldwide
1t is evident that the necessities of
foreign markets even in the event of as
sured European peace are making sucn
requisition upon capital resources as 70
force high rates for their employment.
either there or here. Falling off in Amer
lean exports Of cotton and foodstuffs Is
serving also to impair this country's COM
mand of banking credits abroad.
Slowing down or business activity Is
proved by various indications. March de-
liveries of copper, however, made new
monthly record. The governments crop
reports have a high condition figure for
winter wheat.
Expects Tariff Compromise.
The stock market, with whatever war
rant, regards the tariff bill as basis for
compromise on some rates, and fears
lengthy struggle and uncertainty. The
coming conference over eastern railroad
trainmens demands, with the f1remen's
arbitration still undecided, suggests dis
turbing possibilities. The Union Pacific
dissolution problem remains cause OF
anxiety.
The steel market has quickly returned
| to normal conditions after disorganiZation
caused by the floods. A great deal of re-
| placement work will have to be done, and
already orders are pouring into the mills.
| 1t is understood that the Pennsylvania
railroad will spend $6,O00OO0 on replace
| nTentS and the Baltimore and Ohio $1,000,
600 And other roads in the flooded dis
| tricfs will have to spend proportionate
amounts.
Steel Contracts Large.
| In other steel branches there has been
| a big amount of new work contracted,
among the orders being one for 1.7OO tons
Of structural shapes for Sam Francisco.
Western roads are making heavy demand
| for track supplies because of the destruc-
ton by floods. There is big demand
| for wire products to replace. Railroads
| need spikes badly to repair flood damage.
| The increase in shipbuilding tonnage
on the Atlantic coast has been great.
rising from "a GOO tons for the nine
months ending March, 1912, to 1G1. O61 tons
for the same period this year. while the
| total engaged output Of the United
| States for the latter period was go 266
gross tons. Most Of the shipbuilding plants
| have enough business on hand to keep
! them going for the next fifteen months.
! Untitled orders on the boboks of the va
| rious subsidiary companies at the end OF
| March. were I. 46s, 956 tons or 1877. 7J9 tons
| less than at the close of February.
Pig Iron Is Active.
| Pig iron is again active. One large in
terest is reported to have closed contract
for 5000 tons of No. 2 foundry and is in
the market for an additional 5000 to
10000 tons. other sales aggregating
1900 tons have been closed at little
under SIT delivered. Copper is decidedly
firm. though buying is less active. Tin
| is firm.
/ Cotton goods markets have been gener-
ally quiet and sales are being made at
| the expense of values. This is noticeable
| in cloths and convertibles. where prices
on many odd constructions have been
! falling off, Trading some lines has
been good. Fall River sold 10000 pieces
of print cloth, of which 10000 were for
SPOT delivery Printers bought subStan-
| tial quantities of courtyard eighty
squares for percales at cents, which Is
about one-eighth cent under the lowest
price this far this year.
| The demand for printed goods OF sta
pie character from the jobbing trade
| has been light. Bleached goods were
bought from hand to mouth, while heavy
brown goods accumulated slowly and
held relatively firm. Colored domestics
are steadier than many of the other
lines, as the leading mills still have many
goods to deliver on contract.
|