Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-14
NEWS HELPS BOOM
IN STOCK MARKET
Favorable Interpretation Is
Placed on Developments
of the Week.
TARIFF BILLS PASSAGE
AN AID TO SPECULATION
Damage to Corn Crop Had Been Dis
counted and Optimism Il
Prevalent.

NEW YORK. September 1s.-Under-
lying conditions In the securities market
improved this week. Passage Of the
tariff bill by the Senate removed un-
certainty on that score The drought in
the southwest was broken. Trade re-
ports in many cases were cheerful. The
Investment demand was better.
In the stock market, after an uncertain
and checkered movement In the forepart
Of the week, a comprehensive and active
advance set in. which developed to strik-
ing proportions In many cases.
The advance was fostered by various
incidental developments. A number Of
these galvanized the market into sudden
activity. An example was the rumor
Of an intended extra distribution to
Union Pacific stockholders out OF the
proceeds Of the Southern Pacific sale.
Steel Cars Play Part.
Another such special factor was the
assertion that wholesale purchases of
steel cars by the railroad companies
would be forced by the New Haven dis
aster. This caused furry In the rail-
road equipment stocks. There was
movement in the petroleum stocks with
out any definite explanation. The variety
OF these rumors pointed to their unau-
thentic origin and led to the supposition
that the markets appearance Of
strength. while Influenced by bettermeni
In fundamental conditions, was due
largely to professional initiative.
The sag In prices preceding publication
OF the government crop report and the
hardening afterward was an example OF
how corn crop damage had been discount
ed In the previous action of the market.
The figures even Of the estimate had been
accurately predicted. There was the fur
ther consideration that the brilliant prom
Use OF a bumper wheat crop Offset the eff
feet OF the corn showing. Then there
were reports OF soaking rains In the re-
cent drought district. The influence Of
the corn and cotton damage is modified by
the large reserves from the preceding
years crop and by the high ruling prices,
Steel Orders Picking Up.
Current consumption Of steel products Is
maintained and the rate OF decrease in
new orders is lessening. as shown BY the
United States Steel Corporations state
ment Of untitled orders. The rise In iron
prices shows the growth Of demand al
ready at work. but the yielding Of steel
prices indicates that the process had not
yet reached that department. The copper
producers report disclosed the smallest
surplus of refined copper in years.
The seasonal movement of currency
from the reserve centers to the agricul-
tural interior threatens to supply q nat
ural check to the speculative use Of funds.
Interior demands on New York for cash
at this season usually run from $50 O0O. 600
to $75OCO.O00. and the movement has bare
ly begun. Discount rates are hardening
abroad. although the banking position
there continues almost unprecedentedly
strong.
Competition for business in steel sheets
continued keen and resulted in q further
decline of 81 per ton.ion block. but gal
Bars and plates were easier In time. IL
not lower n price, The supply of crude
and semi-f1nished steel was more plenti-
full. Mill operations are no longer ham,
pered by q lack of steel, and billets and
sheet bars tend downward.
Export Trade Gratifying.
The export trade continued gratifying
in the aggregate. The largest single
contracts were 1000 tons rails for
Ecuador and 1900 tons fabricated steel
shapes for Buenos Aires. The United
States Steel Corporation chartered three
American steamships to carry rails to
Brazil.
Railroad contracts placed called for
nearly 100, 900 tons of steel. The prin-
cipal rail orders were $500 tons for the
New York, Chicago and st. Louis for
1914 and $500 tons for the Missouri. Kan
sas and Texas and 400 tons for the Erie
for 1913 shipment.
Steel building contracts we're larger in
the aggregate. The general contract for
the Ford Motor Company, Philadelphia
plant, was placed and the 3. 100 tons steel
required will probably be furnished by
the American Bridge Company. The
United States Steel Corporation booked
orders for $4,000 tons and shipped about