Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-09
TREND |S,UPWARD
IN HOLIDAY WEEK
Volume of Stock Trading
. Small, But Movement to
Higher Levels Noted.
NO DECIDED DIFFERENCE
IN THE CURRENT DEALINGS
Steel Business Reported Better
Than Ever'-Economic Conditions
Created by European War.


NEW YORK, July S.-Holiday condi-
lions prevailed in the New York stock
market in the early part of the week,
and. while the volume of trading was
correspondingly small the price move
ments were In the main toward higher
levels. Some of the bears who figured
that the time would be opportune to
pound down the market found that
they had forgotten to reckon with the
July dividend and interest disburse-
ments. which brought a considerable
quantity of new money into investment
channels. The midyear payments to
investors this year have been excep-
tfonally large, and this has not only
provided an incentive for the contin-
ued purchase of prime securities, but
has furnished the capital for new COM
mitments.
one of the features of the stock mar
ket in recent weeks has been the heavy
selling of munitions stocks, not by the
general investor. but by the profession
al trader. In seeking an explanation
for this turn of AFFAIRS many people are
inclined to attribute this condition to a
probable embargo on the expectation
! VI hiuHitiOiS " EUROPE, OF TO the pro-
posed tax on munitions sales, or to
some such reason. But these are far
from correct. The fact is that the in
dustrial concerns which have expected
to reap such heavy profits from the
manufacture of these war materials
have greatly overestimated their pros
poets. There have been SO many con-
tending features. such, for example, as
the disappointing volume of output and
the heavy percentage of reflections, that
in almost every instance the expected
profits have vanished into thin air In
other words, the temporary arsenals
hand, munition factories which have
been specially constructed for the pur-
pose and which for years have been
perfecting the quality of their prod
ucts have reaped a considerable har-
vest.
Crops and Business.
Current business conditions are with
out decided change in any respect. the
high records so often reported In the
past being maintained on as satisfac-
tory basis. Some disappointment is
being felt in the agricultural sections
because of reduction by about 300,000,-
| 600 bushels in total wheat crop; but
| present indications are that the spring
since the last government report.
Spring wheat is backward. as in corn,
which has been retarded by abnormally
cool and wet weather. Flood dana ge
| is reported In some states, where con-
siderable acreage has been lost The
outlook for hay and alfalfa is good.
Some authorities are still pinning their
faith to a 750.000,000 bushel wheat
sive and will be glad to see 720, 900, 900
bushels actually harvested. The amount
carried over from last year, however,
is unusually large. so that the indica-
tons are that the net return received
by the farmers for the total supply
will be very satisfactory.
The steel business in the United
States. according to e. H. Gary Of the
ter than ever before, The production is
larger, the profits greater and the
workmen are receiving higher wages
The untitled orders for the various
products of the subsidiary companies OF
| the corporation aggregate nearly TO-
100000 tons, and about 10000 tons OF
this total have already been specified
for actual delivery. Besides, the pres
ent daily bookings are about so pei
cent of full capacity. and would exceed
such capacity except for the fact tina
the accumulated orders and specifca
tons necessarily too long delay deliv
cries on account of new orders. Thu
mills are producing at the rate of 81 00
II or $4,000 tons per day, The earning
Il for the current quarter will not b.
II made up until the day the figures ar
II given to the public. but 1t seems ap
Ill parent they will be in excess of tn
Ill earnings for the last quarter.
IL Coming Economic Conditions.
Ill One result of the great war is tn
III national and racial passions which /
III has aroused and which will not die on
III for many years. This great conflict ha
Ill driven the entente allies into a clos
III union which will not cease with tn
III conclusion of hostilities Already
III while the war is yet on, the allies hav
Ill entered into agreements about econo
M mic conditions when peace Is restored
iii These powers are united against tn
III teufonic empires, and will not permi
Ill the establishment of commercial reIa
Ill tons of any sort with what they cal
Ill the enemy countries.
iii This Is not material for the presen,
III but when the war ends the commercial
III treaties of the entente powers will as
III sumo very serious character Indus
III trially and commercially, Great Britain
iii France, Russia, italy and Japan ar
III practically q unit against Germany an
iii Austria, and will establish tariffs whicl
Ill Will discriminate against the centra
III empires and prevent their rehabilita
iii ton.
III 1t is significant that the accumulate,
iii Of goods in Germany which cannot b
III sold during the war. and which nigh
III have been unloaded upon other coun
III tries at very low prices. will be ex
III cluded from all the allied countries b.
iii prohtbitive duties which will make tn
III sale of these exports at any price YER
III diffcult.
II Rising Demand for Tariff.
m It js to be noted that in this oountr
III there is also q rising demand for tarif
N rates sufficiently high to prevent tn
III export of any commodities from an,
Ill one of the European countries at Low
III prices. Both in Europe and In thi
III country this export of cheap goods /
II described as dumping"
Ill Before the war the German steam
HI ship lines carried on a profitable bust
III ness between the different parts of tn
II British empire and were awarded man
Ill mail contracts. 1t is needless to stat
III that the granting of these mail con
III tracts to German lines is a thing of thu
III past, and that these peculiar advan
III tages formerly enjoyed by German
III steamship lines will not be restored
III These commercial arrangements o.
the allies are important as indicating
III the direction in which the trade winds
HI are blowing. 1t is very important tina
IL the United States shall speedily tax,
Ill steps to secure all the commercial ad
III vantages that 1t can through treatie.
HI with Great Britain, France, Russia ant
III Italy. and especially with Russia, 6
III country of vast and largely undevel
ia h i1I Ia @yH