Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-29
EASE IN PRESSURE
ON STOCK MARKET
Buying Not Heavy, But the
Eagerness to Sell Securi-
ties Is AIIayed.
SETTLEMENTS IN JULY
A DISTURBING FACTOR
Financial Centers Now Believe That
. Arrangements Have Been Made
to Meet Demands.

NEW YORK, June 2s.-Signs were not
lacking through the week of a feeling Of
reinsurance over the nearer financial
prospect, while complete confidence over
the longer future is lacking vet. For
This reason the weeks market was free
from pressure. while no great enthusi-
asm was manifested on the buying side
Speculation came almost to a halt fol-
lowing moderate advance on the first
two days of the week
The near approach of the July settle
ment period enabled the formation of def
mite conclusions that adequate prepara-
tions had been completed to meet the
dreaded requirements Of this period The
stress OF. the position conferred especially
In Berlin, owing to the well known de-
pendence Of German enterprise on for
eign capital and the equally well known
obstacles in recent months to its use In
Germany. With the July engagements
met, period OF temporary relaxation Of
money markets is quite likely to follow.
1t is this promised relief that the weeks
stock markets reflected. How long this
relief will last remains g. subject Of
doubt. and this still constitutes the UNI
oerlyins constraint on securities markets.
- Call Money Is Cheap.
Money on call in New York loaned as
low as l per cent during the week, but
the firm rates for time loans on collateral
and the scanty demand for commercial
paper. on which 8 per cent was the rul-
ing rate showed the real scarcity Of
available funds.
Trade reaction is suggested as a prob
especially in Germany. Such relief from
immediate borrowing demands on banks
must carry with 1t diminished profits Of
enterprise and further impairment Of
credit. the damage to which is already
alleged to lie at the root of the difficulty
OF eniistfng capital. Railroad authorities
urge this argument strongly in pursuing
their claims for increased freight rates
The market shows its sensitiveness to the
subject in its quick response to first inn
pressions OF the interstate commerce
commissions attitude toward it,
j. F. Morgan phrased the position in
IN; tnese words to the New York public sery-
Ice commission: 1T is not q matter Of
security SO much as of available money
me money just is not available for the
needs now"
Money to Move Crops.
Bankers, therefore, look forward with
some anxiety to the need for money to
move the crops. The usual recourse Of
borrowing abroad will be sought, but the
response is not certainly known. Pas
sage of the new currency bill, at least
In time for the seasons needs, is not ex-
pected without counting differences of
banking opinion over the effects to follow
the law.
me seeming assurance of judicial rat
incation of the Union Pacific plan OF
ulssoiution removes factor that had
threatened h,,rH
ever since the original plan failed. The
trusteeing Of the Southern Pacific stock
insures AGAINST forcing 1t on a weak
market. Speculative sentiment also was
iaVorably affected by the inference Of
ioeraifty In the administrations approval
or the exchange OF Southern Pacific for
Baltimore and Ohio stock with the Penn
sylvania railroad.
Steel and copper news gave no intima-
ton Of the expected revival of demand.
Addition to the freight car surplus for
the first half of June was large enough
to strengthen the belief in decline in
traffic Rains in the corn belt relieved
some anxiety, but fears Of damage to
spring wheat were manifested
Passing Critical Stage.
The blast furnace interests appear to
be passing through a most critical stage.
The decline in the prices of pig iron, that
has been almost continuous for six
months, now threatens to break through
the productive cost level in all pro-
ducing districts and only the most ia
vored stocks can hope to escape a loss
on sales now being put through for third
quarter and SecOnd-half shipment.
g. Foundries and mills melting iron re-
port all orders for castings and demands
for lower prices on unfinished contracts.
Consequently the great majority of pig
4 vrb{ 1n o,;a
decline. With small buying, competition
for orders among blast furnaces in
creases and as a. result prices at Buffalo
and Mahoning and Shenango districts
have dropped below S14 on No. foundry
in not few instances. Sales Of MALE
able Bessemer have been made at SIC or
less, and No. 2 foundry at $1650 or less.
delivered in New England. Basic has
dipped to SIS or less at furnaces in east
ern Pennsylvania. In the south No. ?
foundry has sold at $40 to $1,000. and
consumers do not take hold with avidity
even at these prices.
Pig Irons Big Drop.
This means that pig iron since Janu-
airy l has suffered a drop Of S. to SIS
per ton on the selling price. while the
cost of production has increased with
small hope Of reducing the latter over
the second half of the year. as coke
ovens still demand $3.50 for furnace fuel
for delivery over the balance of the year.
One encouraging feature last week was
that several large consumers had the
temerity- to buy round tonnages. Pipe
works took $1,000 to $4,000 tons Of
southern and northern metal. the Cen
eral Electric Company closed for up
ward of 1900 to 1900 tons. malleable
foundres bought 10000 to 1900 tons
and tube works took a moderate tonnage
of basic in the east
Rolled steel orders continued to aver
age about 20 per cent of current ship
ments. with the steel corporation inter-
ests INDEPENDENT interests are not do
ing quite as we'll. k.eel billets receded
to Sa6.5O for third quarter. but finished
products were better maintained. Rail-
roads were conspicuous by their absence
from the market. Steel building and
bridge contracts last week called for
scarcely 10000 tons of steel shapes.
RAILROAD AUCTIONED OFF.