The Birmingham age-herald., 1923-08-20
r FINANCIAL CIRCLES H 0L ] TIMISTIC VIEW 0F OUTLOOK
Emphasis Is Given To Steady ing Of Iron Market Follow
 ing Active Buying

NEW YORK, August 1s.-(By As sOciated Press )-An appreciably more optimistic view of the business outlook was apparent in financial and commercial circles during the past week.
 This growth of confidence was due partly to reassurA nee in the matter of the new administration, partly to firmu ess in wheat and cotton prices and partly to suggestions that turn may be at hand in the forward buy ing of the more important industrial products. Under these circumstances the security markets were firm, short covering disclosing a meager supply stocks and some new commission house buying being attracted. The effect was to lift the stock market out of the extreme dullness into hich it had fallen and to produce q more convincing rally than had been seen during the summer,
 Fig Iron Nhrket steadier.
 Tndustrially, considerable emphasis was given to a steadying in the pig iron market For the first time in weeks the Iron Age index of pig iron prices failed to show 8 recession. The steadying followed more active buy ing of this commodity and a number of trade 0bservens pointed cut that the circumstanceS are similar to those which, usually attend turn in this market. As furnishing aodi- tional basis for this point of view, a firlning up in the prizes of coal, coke and scrap iron was noted.
 Steel production meanwhile shows signs of a slight further slackening, but 8 still within 15 or 20 per cent of the peak reached in the spring. Much attention is being gwen to the effects of the introduction of the eight-hour day. The change in work ing hours is stiu too partial to ad- init of precise judgments, but the general effect will be to adjust out put to the lessened demand to sup port the existing level prices. Lit tle actual change is shown, but the situation is more hopeful.
 o O O
 Further Recovery in Wheat.
 A further recovery in wheat prices was an additional source of gratift- cation. The leading futures at Chi cago advanced to prices about cents above their recent lows. These gains were principally in response to further reports of crop damage Tn Canada, which followed the Canadian governments estimate of crop of 3S2,O00. 900 bushels, as compared with recent talk of 500, 100000 bushels. The United States department or apriculture also revealed the fact that statistics in farmers intentions 10 plant indicate a reduction of acre aga this wear to a figure 10 1s per cent below that of last year.
 Ffrmness in cotton prices was due principally to continuation of the se- Verely hot and dry weather in Texas and Oklahoma. This was generally admitted to be having distinctly unfavorab1e effect on the crop and a yield in excess of the governments last estimate of 11,516,000 bales was considered improbable. Coincident with firmness in the raw materials, a better tone was reported in the cotton cloth market.
 O o O
 Calm View of oil Status.
 A calm view was taken of the ad-- dftional signs of weakness in the oil situation which were presented oy inc latest cuts in gasoline prices. These were considered the natural result of the enormous flush produc- ton which has developed in the new California fields, this oil yielding a much higher proportion of gasoline snan the Mexican crude, which 1t has
 Weii-posted observers expressed the opinion that the situation prob ablv is now at it's worst and that production will gradually decllne, while consumption will be stlmuIaIeu by the price cuts.
 Publica tion of the British rejoinder to the last French note on repara- tions was followed by break in the French francs to a new low for all time. Belgian francs and Italian lire aIso were weak but sterling and most of the other Europeans were steady. Conservative opinions stlll held to the view that while an early settlement is unlikely, progress to- ward it is slowly being accomplishea'