Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-08-20

New York, Aug. 19.-(By A. PAN
appreciably more optimistic view Of
the business outlook was apparent in A.
nancal and commercial circles during
the past week.
This growth Of confidence was due
partly to reinsurance in the matter Of
the new administration, partly to frm-
ness in wheat and cotton prices and
partly to suggestions that turn may
be at hand in the forward buying of
the more important industrial products.
Under these circumstances the security
markets were firm, short covering dis
closing a meagre supply of stocks and
some new commission house buying
being attracted. The effect was to lift
the stock market out of the extreme
dullness into which it had fallen and
to produce more convincing rally
than had been seen during the summer
Industrially. considerable emphasis
was given to steadying In the pig
iron market for the first time in weeks,
the Iron Age index of pig iron prices
failed to show a recession. The steady
ing followed more active buying of this
commodity and a number of trade OBJ
servers pointed out that the circum-
stances are similar to those which
usually attend a turn in this market.
AS furnishing additional basis for this
point of view. a firming up in the
prices of coal, coke and scrap iron were
noted.
Steel production meanwhile shows
signs of a slight further slackening.
but is still within Is or 90 per cent.
of the peak reached in the spring. Much
attention is being given to the effects
of the introduction of the eight-hour
day. The change in working hours is
still too partial to admit OF precise
judgments. but the general effect will
be to adjust output to the lessened de-
mand to support the existing level or
pricess Little actual change is shown
in the forward buying situation but the
feeling is, as in other industries, more
hopeful
A further recovery in wheat prices
was An additional source of gratifica-
ton. The leading futures at Chicago
advanced TO prices about six cents
above their recent lows. These gains
were principally in response to further
reports of crop damage in Canada.
which followed the Canadian govern
ment's estimate of crop of 3S2,eVo,-
GOO bushels as compared with recent
talk of 500. O00. 600 bushels. The United
states Department OF Agriculture also
revealed the fact that statistics on
farmers intentions to plan indicate
reduction of acreage this year 10 fig
ures 15s per cent. below that OF last
year.
Firmness in cotton prices was due
principally to continuation OF the not
and dry weather in Texas and OkIaho-
ma. This was generally admitted TO be
having a distinctly unfaNoraole eHecl
on the crop and a yield in excess OF
the governments last estimate OF ~
SO. 900 bales was considered improb-
able. Coincident with firmness in the
raw material. q better tone was re-
Dorted in the cotton cloth market.
A calm view was taken Of the add!-
tional signs Of weakness in the Oil
situation which were presented by the
latest cuts in gasoline prices Ihese
were considered a natural result OF lhe
enormous flush production which has
developed in the new California helos'
this oil Welding a much higher proper
ton of gasoline than in Mexican crude
which it has displaced.
Well posted observers expressed the
opinion that the situation probably is
now at its worst and that produc'lon
will gradually decline while consump-
ton will be stimulated BY the price
cuts.
Publication ot the British rojoinder
to the last French note on reparatlons
was followed by 2 break IN french
francs TO a new low for all time. Bel
GUM francs and Italian lire also were
weak. but most of the other Europeans
were steady. Conservative opinion stu
held to the view that while an early
settlement is unlikely. progress toward
one is slowly being accomplished.