Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-05-14

New York, May 13-(By A. P.)-
With speculative sentiment still I'M
settled and with commodity prices
still showing such :rregularity, re,
ports received in business quarters
during the past week indicate that
production is continuing to go ahead
az rate close to the maximum. The
latest figures for loadings of railroad
freight cars, those for the week end.
ing April %. showed a total Of 964,OOO
cars, which sets a new high record
since the middle of lest November
ard Is only five per cent. below the
greatest weekly movement in history.
The weeks loadings established an
entirely new record for this season of
the year. Unusually heavy ship
ments OF merchandise an miscellan-
cous freights were, Furthermore, re-
ported for the larger Fart of the sain.
Additional evidence of sustained in
dustrial activity is furnished by the
steer industry. Although the ten
dency toward a falling off in forward
buying has continued. output has, if
anything. increased. The United
States Steel Corporation. for exam
pie, is reported to be working it's
plants at 81 per cent. capacity. Con-
sumption of steel also seems to be 60
ing on high rate. With the mills
working at so high rate. they nat
urally are catching up on orders and.
with new forward buying bod some
what in allegiance. are able to offer
prompter deliveries. AS a result.
premium prices have disappeared to a
large degree. On the other hand the
n:illS also are working off old con-
tracts taken at lower prices. so that
the average contract price of the ma
tril being delivered is rising.
Az exception to the general trend
is offered by the textile industry
where curtailmentS ! " been an
Eounced by few New England cot
ton mills. While these announce
mcnts have had depressi-' effect on
the price of the raw material, they
probably do not represent any great
falling off in the aggregate produc-
ton of cotton cloth.
Even cotton prices appear to have
moIkd more in response to the gen.
eral tenor of speculative sentiment
than to the position in this particular
industry. All of the markets in
which the speculative temper plays a
part have continued to show dis
tirctly sympathetic movements.
After a sharp drive at the start Of
the past week. the bear party clearly
covered short commitr ents on an eX-
tensive scale. Sharp advances re-
suited but only 4 moderate amount
OF new buying seemed to / attracted.
AS the week closed the shorts started
another active selling movement and
succeeding in forcing .ood sized de-
clines.
Opinions as to the significance Of
these declines continued to be mixed.
On the other hand come observers
pointed to optimistic statements by
cabinet members to the effect that
the danger of an inflationary move
ment is passed and main. aimed that
business is now established on a
basis which will make the present
prosperity relatively lasting. On the
other hand. there are those who claim
that recent wage advances have yet
to make their effects fully felt and
that when new buying movements
start prices will again move upward.
In some quarters the view is held
that part of the recent unSettlement
is due to the foreign situation. In
this connection it is pointed out that
the occupation of the Ruhr has alb
sorbed the trade revival "f Europe,
with an adverse effect on the Euro
ptan exchanges and the European
markets. Reactions in foreign eX-
change have been considerable. the
pound sterling having fallen some L.
cents below the high of the wear.
Such reactions naturally have the ef-
feet of diminishing fore:~'' purchas-
ing power. Conditions in the copper
market are cited as an example of
how our own markets are being in
fuenced. With consumers and pro-
ducers contracted up for a number
of months ahead, the market on this
side of the water has been thin one
which has been easily influenced by
the weakness displayed by all the
non ferrous metals at London as a
result of the Ruhr difficulty.
Conditions in the money market
have remained little changed. the
slightly greater degree of ease recent
ly displayed being maintained. The
treasury's announcement Of $780,
GEO, 900 offering of "a per cent. four
year notes to refund the maturing
victory loan caused no disturbance.
The slightly higher rate was offset by
the fact that the size of the offering
vas somewhat smaller than had bEen
Mt