New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-04
Stock Market Improvement and
the General Prospect.
STEEL EARNINGS LARGE
Treasury to Aid Country Banks
Turkeys Industrial and
Financial Position.

bearing on the stock market. Unques-
tionably the information of greatest
Importance 10 investment business ana
Of national interest as rejecting the
undertone of general business was the
quarterly statement of earnings OF the
United States Steel Corporation. AS
a rule Wall Street is fairly accurate IN
Its estimate Of values. and so closely
follows the current operations Of corpo-
rations that its prophecies regarding
the probable showing of earnings state
ments vary only slightly from the
actual figures when they are puDlshed'
In this instance. however, Wall street
has underestimate the steel earnings,
and placed the figures around S3o'"o'-
600 as a maximum: consequently, the
Street was greatly surprised when, on
Tuesday. the statement showed net
earnings Of S40,219,Sl3, after the de-
duction Of operating expenses and IN
terest on subsidiary company BONDS
The surplus for the quarter OF Sl3,-
61Q 365 established record for the
steel corporation at this season or the
year. The net earnings for this last
quarter showed a large gain over the
net earnings in 1912 which we're SO
1O2. $50. In 1907, which was the record
year. the net earnings reached s4o'-
5O3. 7O5, but neither before nor since
that period have the net earnings toi
the second quarter of the year been
equalled.
The significance Of this report is APP
preciated when considered in the
usually accepted light that the pros
perity or adversely OF the Steel Corpo-
ration gives an index to actual trade
conditions throughout the country.
THE Iron Trade Review says that
heavy buying of pig iron in leading
iron centres has brought great encour'
agement to the entire trade and FUR
nishes strong evidence that prosperity
will be enjoyed throughout the re-
mainder of the year. The very favor
able reports of earnings by the Stee
| CORPORATION, the Republic Iron anC
Steel Company and other indepen'
dents show that in spite OF th'
| decreased buying of the past Sly
months business is really on pros
porous basis. and with the return
| Of active buying, much greater profits
are in prospect. The returns from the
Pittsburgh and Youngstown district:
show that within the last few day:
purchases of steel making pig iror
have aggregated about 100000 tons
and In the Eastern markets recen
safes have totalled about the same
amount
| While in various other lines which
will be affected by tariff changes, sucf
as the textiles, there remains consider
able apprehension regarding the fut
ure, the last thirty days has witnessed
a generally favorable change in bust
ness factors not only in the United
States but throughout the world. /
cannot be said that we are In a fairly
normal state now, but that we ar,
approaching a decidedly better status
of fundamentals appears to be accepted
by the leading interests Throughout
this country and Europe.
| The currency question this last weel
attracted special attention. when Sec
cuse New York bankers Of entering
into a conspiracy TO depress govern
ment bond issues 1t is difficult to un
| derstand how the able Secretary could
have been led to give out such n state
ment. as in a final analysis values ar
sustained or depressed by the law o
supply and demand.
BY making the IS a basis for banl
circulation and arbitrarily fixing {
standard of value the government ha
maintained a price in excess Of tn
logical one to which these issues wer,
entitled as investment issues. Chang
ing the plan of operation. as outlined
in the new currency measure. and with
drawing that support which has here
tofore been behind government bond
| necessarily has removed a sustaining
prop to prices. and some of the declin
cannot be attributed TO conspiracy o
bear operations. 1t is possible that {
few Of these bonds may have beer
sold for short account, but II is yer.
questionable whether any reputable
bankers were concerned in the trans
action, either directly or indirectly. IL
general review the clouds seem 10 b.
disappearing from the stock market
the crop reports are favorable excep
in a few districts. and the country ap
| pears to be more dependably on tn
mend than at any time since the latte
part of 1912.
The announcement from Washington
published throughout the country OF
Friday morning that Secretary McAdo
would aid the Southern and Western
banks TO the extent of S5OO0.0OO 4
finance crop moving was received Wit
both favor and disfavor by banker
throughout the country. New Yorl
banks found little 10 commend ant
much to criticise in the Secretary
proposed relief measure, but In I'll
South and West the bankers said III
money would be acceptable, although II
the leading interior cities they had n
criticism TO make Of the liberality o
New York bankers. Chicago bank
commended the Secretary's announce