Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-17
Traders Feel That Favorable
Outlook Has Been Dis
counted in Advance.
TONE is STILL CHEERFUL,
BUT MONEY is CAUTIOUS
Expected to Take Things Rather
Easy for the Next Sixty or
Ninety Days.

NEW YORK. August 16-The weeks
stock market continued to feel the i'm
prices upward, but an unstable tone de-
veloped at the higher levels. This was
partly due to the mere recognition OF
the extent to which the wide advance
in prices has discounted already the
favorable turn In conditions which start
ed It, Partly, also. the new unfavorable
factors were taken into account. no.
tably the damage to the corn crop and
the concessions in prices of steel prod
ucts.
Some sensational estimates were cur
rent OF the extent of the additional dam
age to corn since the date Of the gov
eminent report. Merchants in the local
tiles affected were reported as showing
growing caution in buying, and banks
there were inclined to conserve resources
for a possible strain. Another symptom
was a rush of live stock to market to
guard against the expense of shortage
of feed This feeling was offset to some
extent by the promise of brilliant
wheat crop and the decline in prices
Of cotton to new low levels for the sea-
son.
Inroads on Earnings.
Steel trade advices also offered COM
pensations for the Immediately unfavor-
able news. The lowering of prices Is
regarded as a probable preliminary to
a new buying movement. Nevertheless,
with new orders running only about .Ialf
Of mill capacity and a reduced output
in prospect, the lowering OF prices neces-
sarily spells an inroad for time on
future earnings of producers. The new
basis Of competition under revised tarln
schedules is another item in the count.
Gable reports from Berlin of great
mass meetings of unemployed labor car
ried the inference of diminishing trade
and consequently diminishing industrial
activity.
The practical contamination of the
Union Pacific plan for the sale OF Its
Southern Pacific holdings removed a
long-standing menace from the market.
The success of the underwriting synd1-
cate. especially. had a far-reaching In
fuence. indicating as it did. in the over
subscription of stock, returning free
dom in the investment OF capital. The
large proportion Of foreign subscriptions
in particular gave evidence of q rev1ving
demand abroad for American securities.
Bank Of England Strong.
The weekly return Of the Bank of
England showed the strongest position
for the season in years, and there came
from London the intimation that the
climax in monetary ease there probably
had been reached. The flow of gold from
South America has been checked, and an
outgo to Egypt and Turkey has COM
menced, with demand from Berlin in
prospect A French financial authority
asserts sweeplngiy that every govern
ment in the world will need money when
the period OF ease comes.
The United States Treasury has begun
the deposit of surplus funds in southern
and western Banks. The effect has been
prompt repayment by those banks of
loans to New York banks, with increased
ease. as a result, in the Wall street
money market. Banks have bought mer-
camille paper to supply collateral security
for the government deposits. feeling
of reinsurance has grown up in finan-
cial circles on account OF the disposition
Of Congress to treat the new currency
bill In q rational and scientific spirit
Competing for Business.
Competition for the small business of
fering to the steel mills this week de-
plates, shapes, butt-weld pipe and wire
products.
Concessions Of another dollar per ton
carried prices of wire So per ton below
the recent level maintained by the larg-
est interests. There was also some ir-
regularity in other lines, notably In
fabricated steel, with scarcely enough
business to indicate the true level Of the
market.
Consumers are conservative and addi-
tional buying Is likely to be confined to
mandatory requirements for the next
thirty to sixty days.
Railroads Chief Buyers.
Nearly all the orders worth noticing
that came to the fabricating shops were
for railroad work, but the total was
only 1900 tons. The Chicago, Milwaukee
and St. Paul placed an order for 1890
tons, and orders for from 200 to 400
tons were given by the big Four" New
Haven. Chesapeake and Ohio, Boston and
Maine, Joliet and Eastern and Cincin-
natl Northern. OtheD orders are about
to be placed by the Central, Boston and
Western, Baltimore and Ohio. rennsyl-
vania. Chicago and Indiana and Jersey
Central. The Lehigh Valley took bids
on lighters, barges and car floats that
will require several thousand tons of steel
plates and shapes. The Erie ordered
forty locomotives and the Southern rail-
road !. 72O cars
The feature to trade in pig iron was
the large number of small orders placed
and the awakened interest Of q few
large buyers. the outcome Of whose in
quiries mean q turning point In the
market. Blast furnaces were a little
more independent, but prices went up
very slowly. 1t is estimated that mer-
chant sales last week were about $1,000
tons
NEW YORK PRODUCE.
NEW YORK, August 6-Flour-Quiet
but firm: rye -four steady; cornmeal
firm.