The Birmingham age-herald., 1913-08-31
NONE TARY OUTLOOK
IS MORE PROPITIOUS
Influences Here and Abroad
Conducive to This
End

New York, August s0.-The last week
in the month of August in the stock
market is one of traditional dullnesa
and inertia. rhis condition was empha
sized by the professional Discrimination
to enter upon commitments on the eve
of three days holiday entering into
September
The varying phases of the Mexican
situation were a restraining influence
on speculation both here and abroad
Foreign money centers are more in
terested in Mexican government securi-
ties than is New York
A default on Mexican issues might
precipitate an acute sympathetic de-
preston in this class that would prove
embarrassing
1t is this, rather than dread of a
direct clash between this country and
Mexico that affects stock market sen-
timent. OF the two great factors
money and crops, whose shaping is
usually expected in this week. the in
fluence was conflicting. The present
monetary outlook is distinctively more
lpropitious than was expected.
Influences both at home and abroad
| have been conducive to this end. The
deposit of treasury funds in the banks
of the south and west has had an ac-
celebrating effect in loosening the strin-
gency of bank credits to the point of
a plethora Mercantile paper has been
bought with increasing freedom, 50
much so that commercial activity is not
suffering from an embargo on credit.
| Time funds on collateral are also Of
| fered more freely. Improvement in the
bond market is an effect of the same
cause. The displacement of the listed
short term notes by long term bond
was a significant feature of the new
| financing of the week.
| The central governments banks
abroad continue to show such accre-
| tions to their reserve strength as to
Ilessen apprehensions over the burdens
to be met. That such burdens will have
/ to surrender is believed in the retention
of high official discount rates. These
are continued in spite of the great
position of strength.
| Conjecture has been busy in attempt
| ing to sum up the extent of the dam
| age to the crops from the southwestern
drouth sections. Such moisture as there
was brought small hope of help for the
corn.
A queting of speculation IN grains gave
place to activity in dealings in cotton
futures. This Indicated the shifting in
| the field of anxiety from corn to cot
| ton. The effect on trade and industry
| by the damage to cotton and corn are
| to be reckoned with in the speculation.
| The unfavorable crop adviees furnished
the main offset to the helpful monetary
situation.
| Sentiment was affected by the passing
of the dividend on the Cleveland, Cincn-
natl Chicago and st. Louis. attributed to
abbreviated, flood losses and rumors of
further cut in the dividend of New Ha-
ven.
| Assumption of general decline in earn
ing power of railroads was currently pre-
/ vented by the Increase of nearly 10 per
J cent in the net earnings per mile in
the last year Of SO per cent of the coun-
try's railroad mileage as compiled by
the bureau of railroad economics, main
tained by the railroads at Washington.
| Such a showing while encouragi ging to in
| vestors is exactly such as was cited by
| the Interstate. commerce commission to
refute claims of the railroads for in
creased freight rates In 1911 Another
| advance in the price of stock exchange
seats was taken as evidence of underly-
ing strength when 1t was reported the
| Utilities Gas and Electrical company had
taken over the American Cities railway