The Birmingham age-herald., 1913-08-03
TIME LOAN RATES
DECLINE FURTHER
Improvement Continues
Very Manifest in the
Money Market

New York, August 2.-The dropping ten
dency of stocks. which showed almost
from the outset OF the week after an
opening at vigorous advances over last
week, did not look for explanation to news
of a positively unfavorable character.
Indeed, 1t was in the reception of news
altogether favorable that the disposition
to realize profits was most clearly shown
Such market action registers the con-
yictlons of the participants that the rise
has fairly measured the improvement
that has taken place In conditions. That
improvement continued very manifest In
the money market. where rates for time
loans for the shorter periods declined
further. and where a demand for mer-
camille paper sprang up from sources
that have refrained from that demand
for many weeks past.
The promise of the Secretary of the
Treasury to deposits government funds
with national banks to further the move
ment of the crops carried definite assur-
ance of help that had been tactitly as
sumed in the financial world. In that,
as in other utterances from the treasury
department, however, that world found a
divergence from the point of view upon
which 1t has come to rely that occasioned
some disquiet Such divergence was felt
tto1
amongst few New York bankers to
depress the price of United States 2 per
cent bonds with the object of defeating
the currency bill. A diversion of con-
gressional attention to the agitation
against the money trust was dreaded as
acute.
The deposits of government funds now,
1t was thought. might discourage the
lending of foreign money in the New
rlxa NH had an pad a q
a result of the easing of the foreign
money markets during July. London
also bought stocks here to a substantial
amount during the week IN the same
way, efforts to enlist funds abroad to
help in our crop movement might be
defeated and our own market left with
out further recourse to treasury relief
in case of need.
The rapidity with which this country s
wheat Is being marketed is another re-
assuring factor, although this weeks
movement showed a heavy decline from
last week, indicating the passing of the
crest of the winter wheat movement. The
worlds demand for our wheat, however,
is expected to continue large, and it must,
of course, be paid for The damage to
the corn crop by drought is an offset
this was sustaining influence In the
weeks demand for stocks.
The mixed crop outlook leaves opinion
undecided as to revived demand this fall
for manufactured products. 1t was this
| uncertain future demand which held Uni
ted States Steel In check. in spite of the
brilliant showing of earnings for the last
quarter, only once exceeded in a cor
responding quarter and only four times
in any quarter. Another advance in price
of refined copper also failed to pull
copper stocks out of the line of the gem
eral trend of the market. General mer-
camille activity, however. IS reported as
| moderately we'll sustained.
| Reduction of the Illinois Central divi-
| dend clearly aroused anxiety regarding
| the Chesapeake and Ohio dividend. Pub
| lication of June net earnings of railroads
prompts a summing up of results for the
past fiscal year. Increase In operating
cost there shown are read in the light
of the pending arbitration of wages In.
| creases and increases in interest charges
in the light of the difficulty of selling
new bonds