East Oregonian : E.O. (Pendleton, OR) 1888-current, 1913-07-07

The pivotal point in the money
market continues TO be the insistent
demand for new capital. Strong
pressure has been applied to delay
( these demands by both foreign and
domestic bankers. The result has
been a decided falling off in capital
applications in the United States, the
regular records pointing to a total
of about S200,000,0O0 in June, COM
pared with s29S.OOO, 600 the previous
year. 1t is particularly significant
that out of the total new issues ex-
pected in June over $15O,O0O, ,000 were
short term notes. The demand for
new capital continues extremely ur-
gent, this being Illustrated by the new
issues forced out in Europe and also
! in New York at what would be called
excessive rates of interest. A number
of important new issues were offered
this week commencing high rates
conspicuous cases being the 100000
600 one-year notes costing the state of
Tennessee 6 per cent and the Console
dated Gas $15,000,O00 issues costing
nearly per cent, This great pressure
of new securities upon the market is
significant, and must be regarded as
cautionary signal. AS these securi-
ties come out they necessarily dis
lodge considerable amounts of other
high-grade issues, and tend to depress
values of the same
on the Stock Exchange the tenden-
cy has been toward sharp irregularity.
1t is plain that while the outlook is
by no means clear and free of OBJ
stacles that curative tendencies are
quietly at work and having an influ-
ence upon values 1t is many months.
however, since the market has wit
messed such pronounced differences OF
opinion. There Is still large short
interest outstanding, which will tend
to protect the market from any sharp
depression. There are also a number
of buyers who begin to realize that
many of the unfavorable features
have been largely discounted, and that
if further improvement in underly-
ing conditions develops the effect will
be stimulating upon security values.
1t must be recognized that general
business is sound, and that outside of
real estate operations there have been
few signs of overriding. Merchants
and manufacturers have been operat-
ing on a hand-to-mouth basis for
months past. Supplies of merchandise
are, therefore, exceptionally low. For
this condition of affairs, hesitation re-
gardng the tariff has been manly re-
sponsible. 1t is now anticipated that
= NJ IN oft
gust or September. Business has a.
ready very largely adjusted itself
the new schedules, many articles Sc.
ling on the low tariff basis, and a,
soon as uncertainty is ended there will
be a rush of orders to restore sup
plies to the normal. Part of these
orders will no doubt go to American
mills and part will go abroad In all
probability there will be rush of i'm
diminish the usual foreign trade ball
ance in the fall. The textile trades
are very quiet, and many mill shares
have shown a severe depreciation ow-
ing to tariff agitation and reduced di-
vidends. 1t is probable, however,
that the worst has been seen in this
line of industry. The iron trade con-
tinues fairly active. and there is no
scarcity of orders, although price con-
cessions have occasionally to be made
as a stimulant. The railroad situation
is still unsettled, owing to the con-
tinued doubtful attitude of the Inter
state Commerce Commission, but II
would seem as if the Hartman disso-
luton is approaching an end, and this
is encouraging. Politics has ceased
to be an important influence in the
market, and there are signs that the
administration is anxious to avoid
anv unnecessary disturbance to busi-
ness. Discussion regarding the cur
rency bill Is active, and the outlook
for a reasonably satisfactory bill ap-
PEARS to strengthen each day.
AS to the immediate outlook of the
market. some of the most uDfavorable
Influences seem to have been pretty
thoroughly discounted: others, how
ever, such as the Balkan difficulties
and the attitude Of the Interstate Com
merce Commission, started fresh IL
quidation In some respects the late
recovery was rather rapid and en-
couraged a further realization of pro-
fits. The approach of the Independ-
ence holidays, when business will be
suspended for three days, will tend to
restrain new commitments upon the
long side. on the other hard, the i'm
proving monetry position at home and
abroad and the continuance of good
crop prospects should serve to sus-
tain values Next week the mid-year
disbursements will be available and
these will be exceptionally heavy, fully
$4,000, 600 greater than a year ago.
HENRY CLEWS.