Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-30
SELLING BY EUROPE
FACTOR IN MARKET
Results in Pronounced Weak
ness and Makes American
Investors Wary.
FEAR OF MONEY SQUEEZE
ALLAYED FOR TIME BEING
Despite Reports Of Crop Damage,
Confidence in Business Out
look Continues.

look C0nI1nueS.
NEW YORK, July 29.-The weakness
in the stock market in recent weeks
has been attributable to a multiplicity
of causes, not the least of which Is the
renewed foreign liquidation which has
been present on a heavy scale. The
investment demand continues light,
and American investors seem disin-
clined to purchase railroad and in
dustrial shares when they are con-
WINGED that the English and French
holders will sell them on the slightest
sign of advance.
The New York market has been alb
sorbing foreign-owned American secur-
tiles for nearly two years, but the
capital available for this purpose has
been reduced by the fiotation of new
corporations capitalized at nearly two
billions of dollars in the first half of
the current year. and by the financial
requirements of our expanding COM
merce. Records show that during the
past year more than one billion dollars
Of American money has been put into
foreign loans directly.
Add to this the vast amount of
money that investors have brought
forward for the repurchase of Our
own securities and the grand total Is
tremendous difference in our inter-
national financial status. but it has re-
quired the expert skill and application
OF Americas financial leaders.
Europe Well Cleaned Up.
There is a fear. however. that should
the liquidation process be continued
simultaneously with the heavy calls
for new capital In other directions
there will not be sufficient investment
demand to absorb the offerings which
with come to the market from foreign
sources Two factors may be depended
BILE in this direction: first. the British
mobilization, through which the bulk
OF foreign-owned securities are largely
controlled, and, second. the compare
now held abroad. considering the con-
tfnued liquidation of the past two
years.
After the weakly margined accounts
had been shaken out the bears found it
no longer to their advantage to sell
out at prices higher than those at
which they could buy them back. and
as consequence many stocks on the
GOOD
counts OF themselves. Even the motor
stocks. FOR which short lease Of life
had in some quarters been predicted,
showed that they were capable of
coming back" in a way that surprised
even their own supporters.
The nrst two days OF the current week
again emphasized the watchful waiting
attitude of investors and spectators,
without any definite policy or program.
Traders were inclined to await the
quarterly meeting of the directors of
the United States Steel Corporation.
ports were anticipated, no one quite
expected that the record Of the second
quarter would have been SO gratifying
as II proved to be.
Steel Earnings Astonishing.
The earnings OF the Steel Corpora
ton for the second quarter were truly
astonishing, amounting to more than
$81.000,000. or between II and - per
cent on the common stock. In the first
quarter the earnings were between 7
and per cent. Having ef-rned close to
$50 q share on the common stock dur
ing the first six months. the Steel Cor
poratton is in fair way to show $40 a
share earned on its common stock for
the full year. In 1914 the corporation
failed to earn the full amount of its
preferred stock dividend. 1t would be
difficult to find more striking illustra-
ton of the wonderful change which has
come about in the position of American
industry since the first year of the
European war. While 1t is not to be
expected that this record will continue
the future outlook is extraordinary
good. Mills are still running practical
~ at capacity. and prices are still high
despite the concessions from the top
most figures which have occurred in
some lines. But business does not have
to run at the peak Of production and of
profits to be very good over a long
period. falling off from the best that
has been attained in this extraordinary
concern How cautiously concerns like
the Steel Corporation are moving in the
matter OF committing themselves on
the basis of this years extraordinary
results 10 shown by the fact that the
Steel directors added but / per cent to
the dividend. though earning at the
rate of close to eight times the Gus
tomary per cent. That. not unfortu-
nately. puts a damper upon specula-
ton. but II helps to give stability to
industrial ventures, for 1t shows that
turs uncertainties. The directors report
that untitled orders on hand at June 80,
1915. amounted to s.s40,45s tons, which
will occupy the mills for several
months. New business 10 coming in at a
satisfactory rate. many contracts being
entered for delivery of materials
throughout 1917.
Money and Business.
Recent events have shown that