Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-07
BAD CROP OUTLOOK
IS MARKET FACTOR
Responsible for Decline in VAL
ues Registered During
the Week.
PROSPECTS FOR STEEL
ARE NOT ENCOURAGING
Further Price Concessions Probably
Will Be Necessary to Bring
Out Buying Orders.

NEW YORK, September 6-Impaired
crop prospects and the collateral con-
sequences We're the principal factors in
sending prices of stocks backward dur
ing the greater part of this week To
appreciate the sharpness of the effect
produced. it is necessary to bark back to
the mood of the early summer, when a
profuse crop yield was relied on as the
only possible salvation from trade de-
preston.
The world wide relaxation of money
rates. which has come since, brought
relief from an unexpected source, and
the prosperous course of the wheat
market helped to obscure the issue of
the other crops Now the prolonged
drought in the southwest forces back
the subject on speculative attention.
The government report on cotton. with
a decline in percentage condition of Ill
for the month, exceeded preliminary esti-
mates. It's effect was aggravated by
knowledge that deterioration had gone
on since the date of the estimate.
Excited Rise in Com.
The excited rise In corn showed plain
~ the anxiety over the years outturn
of agricultural wealth which was being
reflected in the stock market.
Advices from the iron and steel trade
indicated a cropping for adjustment both
in prices and volume of production, to
new conditions. 1t swas felt that the
crop news must have it's influence here.
The probable extent of the recession i'll
steel prices necessary to bring out re-
vived demand is Widened by the prospect
of reduced agricultural wealth. The
resultant Of these forces points to small
err business and decreased profits in the
steel business. On the other hand the
August falling off in pig iron production
was at a diminished rate from previous
months. demand was greater and quota
tons higher. pointing to the completion
of readjustment in the basic industry.
Copper also rose another fraction in
price.
Railroad Earnings Less.
Another unfavorahle business indication
was the decrease in net earnings of rail-
roads for July. These were cut down,
especially in eastern territory, by heavy
operating costs.
The New York money market showed
unmistakable symptoms of the demands
upon it from the interior AS these came
from quarters where the treasury depos-
its had been made, as well as elsewhere,
it was concluded that the usual season
able demands upon New Ork would nave
to be met in spite of the government S
relief measures.
There were several special factors that
operated against values, such as the
Reading antitrust suit, the disaster on
the New Haven line and the tendency Of
the enactment of the tariff bill.
New Steel Orders Light.
The volume of new business In steel
products last week was light. Consum-
ers Were extremely conservative. The
few heavy transactions in rolled products
during the last ten days of August have
failed to awaken general interest thus
far in September. A further readjust-
ment of prices for finished material
seems to be expected to follow the lower
prices prevailing for billets and sheet
bars.
Railroads show less interest in equip
ment purchases either for this or next
years delivery. The few orders placed
last week for rails. cars and locomotives
were featureless. The new inquiries also
were insignificant.
Stringency in money checked business
in the structural trade all over the coun-
try and the fabricatin shops secured or
ders for less than 1850 tons of steel
shapes for buildings and bridges. In the
New York metropolitan district the high
rates for building loans hold many plans
in, haS