The Birmingham age-herald., 1915-08-06

ed States Steel corporation and reports made public a few days later which told of the condition of other steel industries were coincident in point of time with the increase of activity in the securities mar ket, especially for the stocks of corpor- ations occupied in manufacturing war munitions It is also coincident with great activity in the market in which unlisted stocks of some of the corporations have appreciated from 100 to 150 per cent since mid-spring.
 Leaders in the financial district say that it is not unreasonable to assume that the very impulses which are rep resented in the gratifying reports made by the officers of the steel in- dustries are those which, in principle at least, explain the strong disposition of the public to purchase industrial securies If it be true that the United States Steel corporation, which last Oc- tober was contemplating empty fac tories and a production not much in excess of 30 per cent of it's capacity, should nine months later be able to report that it's net earnings for the second quarter of the year were ncar- ly s2S,000000, with the prospect that in the third quarter they would reach al- most record figures, then it was fair to assume that there is already con siderable revival of business activity The policy of the United States Steel corporation since last August has not encouraged the acceptance of war or ders. It has encouraged every effort that can be made to increase the ex port of commodities which are not classed among war materials The com pany however. was glad to accept or ders for various forms of steel which were placed with it by corporations which had received war orders amount ing to millions.
 Last winter when the affairs of the United States Steel corporation were much discussed in the financial district, it was commonly said that if this cor poration's business began in the spring to increase, not through accumulation of war orders, but through sales of steel commodities of all kinds. then it could be assumed that general busi- ness throughout the United States was beginning to feel stimulating impulses Almost by intuition, and in part ex- cited by reports of heavy orders which have been received by American manu- lecturers for materials of war the pub lie has reasoned that securities of all kinds. but chiefly for the present in- dustrial securities. are likely greatly to be increased In value. Apparently Wall street is beginning to discount what in the autumn may prove to be a very great revival of activity in the securi- ties market.
 The Great Change
 Such a change as is disclosed in the report made last week by the United States Steel corporation is not matched by any other change from depression to enthusiasm in the history of American industrial experience. Some who are curious have been searching the rec ords so that they may discover whether there is another case, at least one not stimulaed by manipulation and specula tion, where within eight months a cor poration changed it's position from one of almost despair to one of enthusiasm and abundant promise of great incr ease in prosperity. such as is disclosed in the United States Steel corporation re- port.
 Every one can understand the appre- ciation in the market quotations of the stock of the company of which Charles M. Schwab is the master mind The story of enormous war orders explains that appreciation. But the United States Steel corporation and other organiza- tions engaged in the steel industry have played a comparatively small part in the activities of the stock ex- changes. These corporations have oc- cupied in the manufacture and market