The Washington herald., 1918-08-09
BUYERS LOOK
FOR RISE SOON
Strong Undertone. but Lit.
tie Change in Quotations
on Street.

New York. Aug. s-war and war
news gave the stock market strong
undertone today. but owing to the
slight attendance on the exchange.
there was little change in prices. A
few issues made net gains for the day.
but the chief Improvement was in
sentiment.
United States steel Il acting 30 well
that II 10 attracting q speculative at
tention. The buyiag shows that some
keen observers are looking for q re-
sumption OF the rise soon.
Tobacco stocks were all strong. ana
the Motors were not injured by the
announcement that Eassenger-car pro-
duction 10 to be eurtailed.
Liberty ia bonds went to another
new low record.
French bonds continued strong.
Cotton was strong. The crop re-
port was about what was expected.
Announcement OF the regular divi-
dend and nothing more for railroad
steel springs caused q slight recession
In the price Of that stock. but only
Temporarily, for the money Ii being
used to retire all bonds.
"NEOu uNCiiIou IMAM pOlLtn
on small transactions. probably as the
ment take over the packing industry.
Baldwin was strong.
Coppers Firm r-
The change of plans by American
Sumatra directors alarmed shorts in
that stock to such an extent that the
price was rushed up nearly four
points in the early trading. 1t lost
that gain quickly. Slight activity in
Tobacco Products and United Cigar
Stores advanced them more than a
point each.
All copper stocks were firm in spite
Of the announced disappointment over
refusal Of the government TO advance
the price Of the metal beyond 2s cents.
The governments reason is accepted
as a perfectly proper one. There IL
enough copper being produced now by
properties that can be operated with
a profit at twenty-six cents.
A few cents more might bring into
production other mines, but they could
not compete under normal conditions,
and they would not produce enough
even now to make a material contri-
10 ulcIdI StOChB.
Little stockholders OF the copper
companies need give themselves no
concern over the situation or worry
about the inside interests being dis
pleased. The copper companies are
making very liberal profits under
present conditions, and when the war
is over the world shortage OF copper.
in connection with the lower wages
that will then prevail. will continue
the good earnings for several years
at least.
Under modern conditions use OF
tremendous quantities of steel such
as everyone admits will be needed for
industrial purposes necessarily forces
the use of correspondingly large guam
titles Of copper. The future Of the
copper stock investments Is bound UP
In the future Of steel.
The stock market Is now compelled
definitely to appraise two important
Industrial facts. One 10 the reduc-
ton OF passenger automobile output,
and the other Il the complete abol-
ishment OF the liquor industry. Ac-
ton Of stocks affected leads the
casual observer to say that these
things have already been discounted.
They have not. The reason IL that In
order to discount what is going on IN
those two industries the stocks in
volved must have very sharp advances
from the present level.
Even malt stockholders will be re-
lieved Of their Improbable enterprise
and will have cash for the preferred
stock equal to more than its present
market price,