Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-06-19
INDUSTRY AND
FINANCE BETTER
WEEKS REVIEW
Production of Steel and
Coal Show Good
Increase
Employment Figure Also Fa-
vorable-Rail Car Trading
Good-Gain in Amount Cot
ton Used by Mills-Money
Market Holds Steady-Grain
Prices Weak

New York, June 1S-(By A. Pr
Industrial and financial conditions in
the last week presented a generally
favorable aspect, notwithstanding the
rcactionary tendency in the securi-
ties market, which apparently was
connected with the technical specu-
latiye position.
Steel production exceeded the best
rate previously attained this year.
More coax plants were started and
more blast furnaces blown in. Coal
production was greater and some OBJ
servers believe that plans were in
preparation for re-opening union
mines in the Pittsburg district.
Detroit employment figures show
ed another increase, thus confirm
ing statements of automobile manu-
facturers as to the continuance of
satisfactory business.
Railroad car loading figures con-
tinued good. Although the absolute
number reported during the week
ended June 8 was smaller than in the
previous week, the rate was higher,
il allowance be made for the Memo
rial Day holiday.
A similar calculation showed that
the gain in the absolute amount of
cotto nconsumed by mills during
May as compared with April was not
accounted for merely by the greater
number Of working days in the later
month; Mays takings corresponded
almost exactly to the average for the
last 10 months, which in turn, were
% per cent. greater than those in
the corresponding period a year ago.
If the present rate of consumption is
continued during June and July the
total for the crop year will amount
to nearly 100000 bales. Exports
! during the same interval will have
drawn slightly more than another
100000 bales from our supplies. AS
the actual yield Of the last crop total
+! led only 100000 bales, it was be-
! lieved that the carry-over will have
: been reduced by approximately A.
! 600, 900 bales. 1t will be, in fact.
somewhat less than normal. Pros
poets for a full crop in the coming
! year meanwhile remained doubtful,
and operatives in the New Hamp-
shire textile mills We're reported to
be showing greater disposition to
return to work.
| The week which brought unusually
large financial transactions by the
treasury passed without creating any
| disturbances in the money market.
These transactions, which conferred
or June Is. included the collection of
I $300,000,000 in incomes taxes, the
payment Of SIPS. 100000 in interest
on liberty bonds, the paying off Of
$3S0,000,000 in maturing certificates
of Indebtedness, the redemption of
$3.50, 100000 in victory notes and the
flotation of s250,000,000 in new GER
| tlfcates.
The rate on call money, the most
sensitive index of the markets con-
! dition, ruled at close to per cent.
throughout the week and at ga
per cent. touched what was virtual
| ly new low since October, 1917
The reserve ratio of the combined
federal reserve system receeded
| Slightly, but this was directly due to
an increase in government deposits,
which in turn may be traced to the
transactions of June Is. Both note
circulation and discounts were lower
circumstances which suggested that
there was still no change from the
tendency toward monetary ease.
Grain prices showed further weak
ness. The reactions conceded with
those in securities, and in some
quarters were considered to have oc-
CURED in sympathy with the latter,
OF to be due to the same underlying
causes.
dlcated, meanwhile, that the farmers
improved their position materially
and that they will make out fairly
well with prices at level cores
ponding to one dollar a bushol for
wheat at the primary markets. Com
petent observers believe that the
farmers are not disposed to market
wheat as rapidly as last year and
| that if the price drops below one
dollar the grain movement will be
slow. In that case, buying of gen.
eral merchandise in the farming dis
tricts is expected to be correspond
ingly delayed, which will exert a re-
flex influence on the activities of
country merchants and country
banks.
The trend Of grain prices as har-
vesting of the new crops progresses
will have accordingly a considerable
effect on developments both in the
money market and the condition of
trade.