The Birmingham age-herald., 1923-06-11
.CH|EF FINANCIAL
 MARKETS DISPLAY FIRM UNDERTONE
Cotton Rallies, Wheat Holds Own And Stocks Rule Con-
 siStentIy Higher

NEW YORK, June 10.-(By Asso- ciated Press)-In a week, during which the weather and the season ex- ercised a restricting effort. the chief financial markets displayed a steady undertone. Cotton prices rallied sharply. wheat held It's own and stocks ruled rather consistently higher. For one thing, the financial mind was impressed with a number of evidences that industrial activity is being continued at a remarkably high rate. Pig iron production dur ing May, for example. averaged 124, 800 tons day, in comparison with 11S,- 300 tons in April, which was inciden- tally the previous high record for all time. The steel trade appears confi- dent, furthermore, that the present rate or operation will be continued for some time to come and that the present level of steel prices will be supported by revival of forward buying.
 Car Loadings Excellent.
 Another bullish factor during the past week was the excellent character Of the reports on railroad loadinEs and earnings. The number of cars loaded with revenue freight in the week ended May 26 was 1,O14.O0O This performance has been exceeded only twice in history, and both these weeks came in the fall, where traffic was swollen by the seasonal grain movement.
 on the earnings side, the American Railway association announced that net income of the class one railroads during April amounted to S3,2OO, 900, which Is equivalent to yearly rate of 61a per cent in valuation, In finan- cial circles 1t was considered sienifi- cant that this figure was attained at a time when operating expenses have been materially increased by liberal expenditures for maintenance of equipment. During the first four months of the year, the earnings of these roads represented only one- fourth of l per cent on valuation less than the fair return prescribed by the interstate commerce commission. Recesxions Small.
 Publication of the index numbers or wholesale commodity prices which are prepared by Dun and Bradstreet showed that the recessions which oc- cured during May were equally small. Dun's index declined only O.8 of l per cent, and Bradstreet's. which is more heavily weighted with raw materials. fell 2.1 per cent. Close ex- animation of the indices makes it clear that tho declines have occurred chiefly in raw materials, which al ways are moro sensitive to fluctua- tions in buying and that the prices of manufactured goods have remained comparatively steady. In some quar- ters 1t was held that tho behavior of the indices was consistent with the theory that business Is now experi- encing Hull in buying rather than the beginning of a major downward movement.
 Cotton rallied strongly during the earlier part of the week, renewed ac- tivities and strength in the spot mar ket at Liverpool being as indicating better demand from British and continental spinners. This condition. combined with showery weather in the growing areas, prompted active short covering and resulted in gains of more than cents a pound. Profit taking reduced the gains toward the end of the week, but left them sub tantial. Better foreign buying of copper also was reported.