The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-18
MARKET OUTLOOK
VERY OPTIMISTIC
Eagerness of Foreign Bankers
Shows Return of Confidence
in American Stocks.
ny DROADAN wAI.I

TeW York, august 17-UnQuestion-
period when fundamental conditions
nave changed for tho better and the
r risa are not generally known. The
rise In prices on the Stock Exchanre
mat eliminated on Wednesday caused
nasty NASTY covering by the small shorts. The
reaction that brought about the low
loss orders OF the little bulls. therefore
me technical position of the market
nation of the "rag-tag and bob tailed"
spectators who grab for the mini
NUNS of profit.
I cially, was undoubtedly the unqualified
success OF the Southern Pacific under
writing syndicate, The eagerness. Of
ton on behalf of their correspondents
bctokens return of confidence in
american american stocks that no thoughtful
showing made by the Bank of England
on Thursday. with the highest record of
Eold holdings for the year, justifes
the optimism.
So many false reports of the settle
ment of the Balkan difficulty were cir
cuiated that the Importance of a real
rchcWal or interest in American securi-
ties has been apparently ignored
1t Is forgotten that in the early days
money provided for our construction
was furnished by European capital. IN
spite or adverse Hesitation our rail
Foreign financial publications Lately
coming TO hand reflect the sentiment
that our corporations have developed
an earning power which justified this
earlier confidence.
Now that easy money is assured for
the movement of the crops manufac-
turers can go ahead with production
and the bankers will proceed to turn
this current of legal tender into their
that they have carried or will issue
The process is interesting. The
farmer raises corn, which is. In turn.
food 1t is transmitted into energy
by the workingman, who mannfac-
lures finished goods, In turn disposed
In this cycle OF trade the banker
appears many times, and the surplus
that that accrues TO the farmer or manu-
would exchange fixed obligations of
corpora tions for these profits.
- When It becomes morally certain
buyer speculation comes in between.
and those who early appreciate the
'rG Tme e case ' of t Rre time money
the firm demand for bonds and the
strong inquiry for short term notes
damentaily the 't Situation e' is sound u' 'u"
The rains in the Southwestern corn
belt, reported on Saturday, will i'm
adversely affected; it should logically
follow that the coming week will wit
ness a broadening OF speculation with
ma teriaNy higher prices.
steel common gives indications of n
higher range of prices. notwithstand-
ing the declining prices for the finished
product, Union Pacific. with the prob
ability of an extra cash distribution.
sh ouid lead the railroad issues. while
st. Paul may be expected to advance
on the theory that earnings will justify
n return to larger dividends.
The copper situation is unusually
strong. Utah. Anaconda, Miami and
Tennessee Copper promise activity at
advancing figures. Public speculation
is still very restricted. and the odd lot
trader is seller on balance. This
suggests the thought that the agGres-
sive bull will encounter little danger
until speculation becomes more gen
cral The outlook is decidedly optimis-