Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-20
Recovery of Market Depends
on Permanence of Relief
From Strain.
FRENCH BANKS STILL
CALL FOR NEW YORK GOLD
Imposing Showing of Country's For.
eign Trade for Year Was
Helpful Factor.

NEW YORK. July 1e-The weeks re-
vival in the stock market had its main
incentive in the easing of the money
market in London. 1t is a general finan-
cial opinion that the extent and the dura-
ton of the stock market recovery will
depend, for the present, on the perma-
nence of the relief from money strain in
Dictated by the course of the weeks dis
count market in London. Some Of the
factors which brought the relief are OBJ
vlously temporary. AS doubt remains
over the more permanent effect specula-
tive hesitation continues.
The satisfaction of the Berlin demand
for gold on London marks the apparent
completion of the work of recuperation
in which the Imperial Bank of Germany
| has been engaged. and allows the diver
sion of arriving South African gold into
the Bank of England's supply. The
Bank or france continues its work Of re-
cuperatlon by further drafts on New
Iork's gold supply
Paris Demand Nearly Satisfied.
This Paris demand also may be near
to satisfaction, and 1t does not preclude
the hope that financial markets may be
| on the eve of enjoying the benefits of the
conservation and preparation which have
been going on in the banking world. The
liquidating phase of this preparation evil
IDENTIFY ended some time ago. The stage
OF restriction of new credits, still in force,
is only slightly modified by the new
turn of affairs in London. Moderate
sums were place.. in time loans in New
York this week for London account
Under the circumstances the future
! course of foreign money markets had a
more than usually direct bearing not
only on the action of the New York
stock market, but on the interest rates
to be paid at interior markets for hold
Ing and moving the crops and for mer-
camille uses.
Back of that stands the much stinted
requirements for capital outlay, which
has halted new enterprise. How far
the iron and steel trade is to expand
beyond the upkeep requirements, to
which it is at present confined, de-
ponds on the extent of the release of
funds for new enterprises, in the opin-
ion of trade authorities.
Index to Situation.
That condition is an index of the
whole industrial and commercial situa-
ton. The Balkan settlement, the ex-
tent of trade reaction in Germany. the
revenue deficit in France and the plac-
ing of European loans for military
purposes are matters of immediate i'm
poftaflce 10 WOutd-De borrowers In the
United States. The London Economist
points out that Il period of high Bank
of England rates is usually followed
by period of low ones, owing pre-
cisely to the effect of restriction of
credits forced by the high rates, such
as the world is now seeing.
The stock market, previous to the
midWeek revival, showed a series of
days rarely paralleled for consecutive
dullness. The agreement to arbitrate
q aSfa railroads IiSnnfa halnal
the revival and the threat of hitch
helped to check it. The imposing show
ing of the country's foreign trade for
the fiscal year was helpful factor.
Hot weather in the corn belt was not
liked. as a prosperous harvest is much
relied on to the clear financial horiZan.
DE velopments in the Mexican and Japa-
nese questions are watched with solicit
tude. So is the slow progress of the
tariff bill. To such of these develop
ments as are unfavorable the stock
market showed a power of resistance
as impressive as was its response to
strengthening influences.
Brazil Buys Rails.
Improvement in the steel trade last
week was most evident in the steel build
ing work. contracts being secured by the
fabricating shops aggregating $1,000
tons. Railroad orders, too, were some
what better. Steel pipe continued active
and specifications on contracts for eli
products were larger. being estimated at
60 per cent of full mill capacity.
Export orders were more encouraging,
including 10000 tons rails for Brazil and
10000 tons foundry pig iron for Aus
tralia, while 10000 tons OF structural
work for South -.merica, Cuba and
Japan are under negotiation.
Staple cotton goods markets rule quiet,
but very steady as to values. Purchases
are being made for Immediate and
nearby delivery and buyers are not
disposed to place late contracts I'M
struction on which production is allowed
to run very close to actual consumption.
The scarcity of spot stocks of many
staples is the feature of the market and
accounts for the steady maintenance of
prices at a time when consumption is