The Birmingham age-herald., 1913-08-18
BETTER FEELING IN
FINANCIAL CIRCLES
Congress- Disposition to
Treat Currency Bill
Scientifically Cause
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New York, August 1.-THE weeks stock
transactions continued to feel the impetus
OF the factors which have mussed prices
but generally upward.
A stable tone developed at the hgh
quotations. This was partly due 10 the
recognition which the wide advance III
prices has discontinued already the Ia
'vorable turn in conditions which started
the movement.
All the unfavorable factors were taken
into account, notably the damage to the
corn crop and the concessions in prices
of steel products. Some sensational es-
tmates were current of the extent OF the
additional damage to corn since the date
of the government report
Merchants In the localities affected were
reported as showing Increasing caution
in purchases. Banks in these places we're
inclined to conserve resources for a pos
sihle strain.
Another symptom was a rush of live
stock to market to guard against the
expense of n shortness Of feed. This feel
ing was offset to some extent by the
promise of a brilliant crop Of wheat. De-
for the season had its weight.
Advices of trade In steel mace cem-
pensations for the unfavorable news
Lowering of prices is regarded as prob
able preliminary to a new buying move
ment. Nevertheless with new orders rum
ming about half Of mill capacity and a
reduced output in pipe in prospect the
lowering OF prices necessarily indicates
an inroad for a time en- future earn
ings of producers.
A new basis OF competition under re-
vised tariff schedules it is learned is an
other item in the count.
Gable reports from Berlin of great
meeting of unemployed labor carried the
inference of diminishing trade and con-
sequently decreasing industrial consump-
tion. The practical plan of the Union
Pacific for the selling Of its holdings
of Southern Pacific removed a menace
of long standing. Success Of the un-
derwriting syndicate had especially a far
reaching influence indicating as 1t did
the oversubsoription of stock. A return
ing freedom In capital has been noted.
A large proportion of foreign subscrip-
tions in particular gave evidence of a
reviving demand abroad for American se-
curities. The weekly return of the Bank
of ENGLAND showed the strongest position
for the season in years. There came
from London the intimation the climax
in monetary ease there probably had
been reached.
The flow of gold from South America
has been stopped. An outgo to Egypt and
Turkey has started with demand for
Berlin in prospect
One French financial authority asserts
sweepingly that every government in the
world will need money when the period
of ease concludes its stewardship.
The United States treasury has be-
gun the deposit of surplus funds in
western and banks of the south. The
effect has been prompt payment by those
banks of loans to New York banks with
increased elasticity in Wall street.
Banks have bought mercantile paper TO
supply collateral security for the gov
ernment deposits. A feeling of reassur-
ance has grown up in financial circles on
account of the current disposition of Com
gress TO treat the new currency bill in
a rational and scientific way.