The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-16

cally assured nothing stands In the way
OF progressive Improvement in business
and finance.
Spreading of Conscience.
The influence OF the big crops is
already showing itself In a spreading
or confidence and in actual business ex-
papsion in those quarters not directly
afected by the war order business.
There was more testimony during the
week OF a broadening out OF activity
in the steel n iron trade. The Steel
Corporations monthly statement OF I'M
hlied tonnage. published during the week,
showed an increase OF 250,344 tons.
which, making allowance for the higher
percentage OF operation In the mills. was
considered highly satisfactory. Reports
from the Pittsburg district are that the
STEEL trade has almost completely re-
covered from the recent depression and
Is now enjoying a boom.
The tremendous export business has
caused real congestion OF orders in the
market for certain products essential
70 the manufacture OF war munitions.
Prices are rising rapidly all around and
some mills have even withdrawn from
the market. TIL pleasing feature OF
the steel and iron business Is a sensible
enlargement OF the domestic demand,
which lends the current activity an air
OF ~permanency. Railroad buying Is still
slow, but in view OF the present state OF
afairs the delay in this quarter is re-
garded more as a blessing thar an Evil.
Good news of the crops. OF the steel
trade and OF industrial conditions gen
orally did much to Offset the adverse
erect upon sentiment of the decisions of
the Interstate Commerce Commission in
TIE Western freight rate and anthracite
cases. As regards the first of these. the
commission granted only an insignif-
cam: portion OF the increase in freight
rates asked for. But disappointing as II
was In this respect. the decision stands
as a reaffirmation of the principle OF
granting higher rates. where these are
shown to be reasonable. which was first
laid down by the commission only last
fall
shows Progressive Step.
In some respect the decision also
represents a progressive step, as the
needs of the Western roads are obvi-
ously not as pressing as were those Of
the Eastern roads last year. to which
the commission granted a modicum Of
relief only after great pressure had
been brought to bear. This encouraging
y" VI tHt iiittttI IL StTtflklltneu DN
the remarkable minority report handed
down by Commissioners Daniels and
Harlan, who not only took the stand
that the railroads in this case we're
entitled to all they asked for, but lal d
down the proposition that improper
financial acts should not debar the rail-
roads from receiving reasonable COM
pensat!on for service given. This sug-
gests a radical change in the point OF
view OF at least part of the commits
sion that is distinctly refreshing. So
far as the anthracite case is con-
cerned. the opinion of the community
Is that here the commission performed
a mere act of justice.
A veritable collapse in the exchange
market and a spectacular importation
Of gold were both events that led to
much discussion. The need of drastic
measures to correct the abnormal CON
dition of tbs exchange markets has
been obvious for some time. It Is
serious In that 1t reflects the difficulty
OF Great Britain TO make payment for
the supplies bought here and business
prosperity here depends greatly upon
this war business.
But the latest decline in rates only
emphasizes this problem rather than
opens up any new questions for dis
cussion. Bankers here n abroad are
negotiating on the best means of meet
Ing the situation and everything tends
TO show that the time has arrived when
some definite action will be taken. II
Is still the impression that the
establishment OF a big British credit
here in the shape OF a long term loan
will be the method finally settled upon.
The stock market in the early par
OF the week witnessed another broad
upward sweep In prices under the
leadership of United States Steel com
nor. But under the influence OF the
adverse developments outlined and a
further disturbing element injected b.
the Mexican situation prices reacted,
losing a portion of the ground gained,
Some OF the war stocks. which had been
bid up in a sensational manner under
went a purging process which brought
them down smartly. But the feature
OF the market continued to be an exhi.
bition OF great underlying strength and
the setback assumes nothing more than
the dimensions and characteristics OF
a normal reaction. At the close of the
week there were no signs that the main
trend OF prices had been interrupted.