Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-19
Price Recessions Necessary to
Uncover Absorptive Power
of Market.
TRADERS TAKE GLOOMY
VIEW OF THE FUTURE
Pessimism That Usually Attends
Market Slump Is Brought TO-
the Front.

the stock market this week showed signs
of sufficient absorptive power to resist
effectively the force Of depression. The
contraction Of loans shown in. the bank
statement indicated that a release Of
credits had accompanied the stock mar
ket liquidation. This was in spite Of the
fact that considerable portion Of the
liquidation was from foreign sources.
| The necessity of securing resources to
meet new commitments In foreign mar
kets apparently was the cause Of this
liquidation. The field of these new COM
.mitments abroad was Indicated by the
news of the practical failure of a number
of colonial loans In London, the violent
slump in the new Brazilian issue and
by the preparation for a coming govern
ment loan in Paris, where, also, the
pressure of financing the Balkan indebt-
edness is yet to be met. The trouble In
Mexico added to the depression on for
eign markets.
That new financing In the New York
market also must some time be provided
for was intimated by one or two actual
new bond issues, and by reports of COM
prehensive plans for, several railroad
systems. -. as 49,.
Outlook Not Optimistic. I
The discouraging views of the outlook
usual In a period of declining prices were
prevalent, and the reasons assigned for
these views did not differ materially
from those heard for some time past.
kumor, based on no tangible develop
ments, had It that the administrator at
washington was planning extensive ieg
is.ation on antitrust lines. Attention.
vas directed to this topic by the appear
ance OF railroad annual reports, contain
ing references TO the effects on earnings
Oh radical laws passed by state legs
latures.
There was active discussion of the gov
ernment's suit to divorce the Central Pa
cif1c from the Southern Pacific. Asser-
tons made in some OF the public crit
cisms of the Glass-Owens currency DILL MAJ
an unSettiing influence on the sentiments
of operators in securities, although they
derived some comfort from unofncial re-
ports that the Senate committee now con-
sidering the bill would make important
changes in It,
Industrials were hurt by reports of
falling OH In demand for steel products,
concessions in prices and some reduction
of working forces. Diminishing prospects
for the cotton crop were a factor in
pect, although the mercantile agencies
reported greater activity in business than
a year ago.
The steel mills further reduced out
put this week. The United States
Steel Corporation is producing steel
ingots at 50 per cent of capacity, and
has about S3 per cent Of its blast fur
mace capacity in commission .Keener
competition for new orders among the
smaller mills is responsible for further
declines in steel sheets, plates and
shapes. and even bars are less well
sustained. Store prices of bars, plates
and shapes at Chicago have been re-
duced on the heels of the decline of
81 to 81 per ton at New York ten
uays ago.
Full returns made BY the steel corr
poration show that business booked in
September averaged $3.50 tons per
day. The probability is that the next
as the railroads are releasing larger
orders for equipment, and, in lurn, Inc
car builders and locomotive works are
placing larger orders for plates and
shapes with the mills.
New Orders for Rails.
The Great Northern has placed some
additional rail orders with independent
manufacturers. The New York, Chicago
and st. Louis has O. dered 5000 tons.
Expor. orders included 5000 for Havana
$50 for Toxic and 1000 for Buenos
Aires.
Car orders included 1000 for the Chi
cage and Northwestern, 500 for the Bur-
lington and 100 for the Missouri Pacific
Locomotive works reported o. ders for
sew enIy -one engines OUTSIDE OF the iorty-
six to DE Constructed by the Pennsylvania
railroad.
steel building and bridge work was
more active. orders for only 1900 tons
We, e closed and BIDS were submitted on
90 additional. The American Bridge
Company is to build twenty more steel
barges Tor the Anne. lean Steel and Wire
Company. calling for 1900 tons steel
plates and shapes.