The Washington times., 1915-01-31
WEEK IN FINANCIAL CIRCLES

One Of the most startling and depres-
sing developments occurring in inan-
cial and commercial circles of America
since the outbreak Of strife in Europe
was the action Of the directors Of the
United States Steel Corporation TUES
day. suspending dividend payments on
the common stock Of that company.
Since the corporation had been ope-
reting for months at less than lao per
cent capacity, very poor showing was
Anticipated by the public generally. but
estimates made by students Of business
conditions. particularly Of affairs af-
fecting the steel industry, had placed
the figures for the quarter at approxi-
mately $16.00o,0oo. Consequently, when
the report showed only something more
than slo.0Oo.0Oo. or more than SS.OO0OOO
less than was required for dividend
payments on the two stock issues. not
only Steel investors were disappointed.
but tho stock market generally suffered
. setback that caused a wipiny out
Of . large part Of the gains registered
on the uptrend Of the market that had
been in progress for the previous two
weeks.
Expected improvement in Steel.
Almost Immediately after the Inter-
state Commerce Commission rendered
its decision in the Eastern rate case.
there was general talk Of Improvement
IN tho steel industry, and us this bust
ness has come to be regarded as the
barometer Of the business world. TIE
impression was created that murked i'm
provement~1iad already set In. Several
Of the railroads placed orders for sup
plies. and during December prospects
appeared to be bright for the steel
mills, not alone Of the Steel Corpora
ton, but for the independent companies
~ we'll.
Steel men now say, however. that
} some OF these reported orders were
nsver contaminated; others we're cam
celsd, while In many cases in which
the contracts actually were signed the
purchasing CONCERNS failed to make
tom the contracts placed by the rail-
roads are for supplies for year. Con-
sequtntly. the call for materials may
be made at any time within the year.
and until the railroads, or structural
steel users make their specifications, the
mills cannot proceed to production. AS
q result many Of the mills that have or
ders on hand are unable to increase
tnoar output JusI Ho".
Turning Attention to Congress.
The business world Is again turning
its attention to Congress. The fight on
tho ship purchase bill, a measure cham
pioped by the Administration. Is arous-
Ing nationwide interest, and the gen-
eral public is following with some con-
oern the discussions among Congress
men on the subject OF additional rev.
enus legislation. There Is said at pres
ent to be no Administration backing for
any revenue-raising proposal. and the
prevailing opinion Is that this question
viii be one for the next Congress to
haxdle. 1t has been suggested. how.
ever, that the war revenue bill be re.
enacted; that a revision of the income
tax law he made to produce more re.
ceipts; that the free sugar schedule OF
the tariff law that becomes operative ir
1915 be suspended. or that the unissuec
Panama bonds be sold
Federal Reserve Statement.
Tho weekly statement issued by the
Federal Reserve Board shows the re-
sources and liabilities of the regional
bank at Richmond, which serves the
territory in which Washington and Bal
timore arc situated to be as follows:
Resources-Gold cain and certificates
Ss,N1 900: legal tender notes. silver GER
tificates. and subsidiary coin. SS2OOO,'
bills discounted and loans. $3,72O0OO. ant
ali other resources. $34 900.
I.iablities-Rcserve deposits. 81. S.645, 900
due to other Federal reserve banks
S3,O0S 900; Federal reserve notes In cir
culstion. $4,000; capital PAID In 81 ll5t,
rb> statement of the combined re