Evening star., 1913-07-27
Where Public Starts to Buy.

When this determination is reached by
large aggregate of people it almost in
variably marks the end of long decline
in prices. Foundation building generally
goes on for weeks and months, as in the
present case. and professional traders are
the last to grasp the fact that 1.-The pub
lie got in first" Not until brokers nave
to bid for stocks through a series OF
days without meeting with offerings at
current quotations does the great truth
convincingly dawn upon them that the
market mas been drained dry and is
hardening-that the iurn has come, the
sun shining through riffs in the clouds.
The changed tenor OF financial and
diplomatic advices from abroad was an
important factor in the American stock
markets, especially New York. The for
eign outlook is more favorable and the
controlling sentiment is one Of conf
dence in quarters where timidity was
most manifest down to late date. Calm
ness has returned to London, and to a
somewhat less degree to Paris Germany
expects to be a moderate borrower for
a good while ahead. The war outlook
is less formidable, not because OF dimin-
ished beiligerency, but largely because
OF the wholesale annihilation Of fighting
men.
There has come a simultaneous ex-
haustion of money and warriors. TO
raise capital to meet long-continued de-
mands incident to wars and politics, 1t
was found necessary to unload upon the
American market great quantities of our
securities. larger in volume than was
generally estimated The tide OF money
turned backward once more and Europe,
instead OF being an oppressive burden, Is
again buying our securities. and at the
same time stopped further pulling down
our supplies of gold. 1t took SGo,ouD.OO
to satisfy the foreign lust for American
treasure.
The international money situation is
more nearly an even keel than at
any time within a year Indications
point to the early return of some or that
gold and the retranSfer of capital ana
credit to this side of the Atlantic In
vestors in Great Britain and on the con-
tinent are hungry once more Tor our
securities. factor of hrst importance
in supplying backbone and foundation
to the home situation. The literature
being sent out from the financial quar-
ter To customers and the press Is con-
servatively bullsh in tone. but saturated
with advice to be cautious and patient
Hard Times VS.. Trade Returns.
There is sad confusion over manufac-
turing and commercial conditions. Evi-
drnes IN abundant fof a certain kind
,Lat The volume OK general business Is
si... shrinking and that working men and
nsnsh are being discharged In vast
ESfistrfS. ltaTU tunes are represented
~ he ogsrwhelmingly upon US. On the
oitssf hand. latest reports show immense
tonnage being carried by the railroads
., cord-breaking gross returns Ihe
.flefemss OF traffic seems to extend from
ocean to ocean and from the guu 10
Canada.
The international movement OF COM
nierce Is the greatest in history, and
the balance in our favor was In excess
of fttl.rUOD0 for the year. To such
AN he dana nd la hOr de-
ysloped that over 100000 foreigners have
crossed on the immigrant ships, and the
ciamor Ii for more. Yet In some COM
| munities there Is heard the cry OF men
| Dy the ems or thousands alleged to be
| 'out OF jobs
| The crops give promise of a full aver
| age yield. How is the unbiased inquirer.
striving 10 acquaint himself with vital
facts necessary to the formation OF
| hans Judgment. going To arrive at con-
/ ciurion: These are the statements that
| are thrown upon the minds of the mil
| lions OF men who compose the business
population. and quick decision is asked.
The tape says an answer cannot be given
out OF hand
| Profit-taking on the 3 to 10 point re-
coyery has been notable feature of
| the week. On attempt to encourage
further bullish action. however, real
stock Is again being encountered and
| bankers give voice to the opinion that
the up movement should be gently
1 I&ptiiSHtCO IdueTS pay neeu
to that kind of caution, especially when
| existing conditions give excuse for the
attitude. While. as general thing,
| bankers were glad to encourage the i'm
provement. their larger interests now
| seem to demand the exercise OF eau
| ton. The advance that took place pro-
duced very gratifying change of SEN
timent, but that does not mean a sem
sattonal bull movement, right of the
bat
AS an awakener the current upward
action served useful purpose. That pur-
pose having been accomplished. ruling
| sentiment now fAvors halt and rest.
according to the most seasoned and in
nuenrai judgment. The current Wall