Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-24
Element of Uncertainty Per-
VadeS All the Great FL
nanCiaI CenterS.
BANKS MAKING READY.
FOR AUTUMN DEMANDS
Caution as to New Loans Has De.
pressing influence on
Stock Dealings.

NEW YORK, August 23-There are
elements OF uncertainty in the outlook
both for financial and general affairs
which accounted for hesitating move
ment Of stocks this week. The doubt
full factors had special force in view of
the extent to which the recent rise in
prices had predicated a clearing of
the financial horizon. The strained re-
lations between the United States and
Mexico, the continued drought in the
southwest and the imminence Of the
interior crop moving demand for cash
were the dominant influences on securi-
ties.
Stocks of corporations having direct
interests in Mexico responded con-
spicuously to the varying news of the
week. The Mexican position, however,
had far wider bearing than on these
special stocks. as shown by the SEN
| sitiveness Of foreign stock markets to
the news.
In this connection it is pointed out
| that the worlds great activity of trade
| for three years past has been due
peculiarly to the development of back
ward countries. The old money centers
have financed this development by alb.
SOrbing an extraordinary VOlume OF
new capital issues.
Led Up to Stringency.
The resulting overextension, both in
London and Paris. had much to do
with the acute financial stringency
which has accompanied the Balkan
war.
Foreign financial authorities report
vague apprehensions of foreign defaults.
The disturbing news from Mexico. Vene-
zuela and the Balkans, therefore, had
q direct interest to lending institutions
To- Dow &c nd n.
f1uence on the renewal of sales from
those sources in the New York market.
The showing Of the great foreign gov
eminent banks is significant of the ex-
tensive preparations "hlcn nave Deen
made. for the expected strain of the
coming autumn. Reserves and bullion
holdings Of the Bank of Englands exceed
those for any August since 1896. The
German Imperial Banks gold holdings
have risen to new record figures for
many successive weeks. The Bank of
Frances holdings Of gold now stand at
record for this season, except in l9O9
The fact that 1t is having its accumuia-
lation OF bar gold coined into French
money is cited as evidence of deter
nination to retain its holdings. There
is no sign. in fact of any intention to
let down official discount rates. in spite
Of the great strength in conditions or
all the great government banks.
New York Banks Cautious.
The New York clearing house banks.
also, while now stronger in reserves
than a year ago, have been pursuing a
cautious policy about putting out new
loans except for short periods. The
placing Of government funds with south
ern and western banks promises. how
ever to relieve part OF the expected de-
mand on New York cash reserves The
engagement of gold in Argentina for
shipment to New York marks the re-
opening Of a source of supply that has
been closed to this market for several
years past.
Indications pointed to further deter
ioration of the corn crop and apprehen,
sion OF damage from the drought spread
to southwestern cotton states.
Copper and electric stocks responded
to good trade news. The steel trade
feels anxious over the question whether
buying is to be stimulated by slight price
concessions.
Steel Trade Picks UP.
Greater vitality was evident in the
steel trade last week, lower prices
stimulating the placing OF larger con-
tracts for finished products.
The Standard Oil Company bought
$1,000 tons steel plates from the United
States Steel Corporation to be used in
the manufacture of riveted steel pipe
The same interests also bought 10000
boxes of tinplate from Welsh mills
Manufacturers using wire products
placed contracts covering six months re-
uuirements aggregating 10000 tons with
the American Steel and Wire Company
In a few instances S1.60 for nails ana
81 40 for plain wire were shaded, out
the market was firmer late in the week
at these base prices.
Automobile manufacturers and agri-
cultural implement makers placed large
contracts for steel sheets at g.O Tor
block and 800 for galvanized. The large
contracts for steel bars secured by the
International Harvester Company, noted
few weeks ago. are understood to nave
developed an average price under $l.So
base. but the open market was strength
ened by this large business and the cur
rent rate on small tonnages is now $l.4O
base.
Smaller Mills Cut Prices.
Freer offerings Of sheet bars by smaller
mills brought out a price of So at mill
for fourth-quarter shipment. More ma
rine work is before the shipyards. Nine
coast and lake boats and car floats
barges and lighters are. under negotia-
4 I