Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-06-25
BROKER CRASHES
FAIL TO DISTURB
MONEY MARKET

New York, June "a (By A. P.)-
The failure of two old stock exchange
houses had an adverse though tran
silent effect on sentiment on the fin
ancial markets during the past week.
Spectators for the decline took ad-
vantage of the news 10 circulate all
kinds of extravagant rumors regard
ing additional insolvencies AMI Of
fered large amounts of stocks and
commodities on the principal OK
changes.
AS a matter OF fact, it appears that
the failures in question, which in
volved houses specializing in foreign
exchanges and securities, and which
had extensive German connections
had little significance as far as the
domestic position is oncerned. They
measured, according to most OBJ
servers, the difficulties of carrying
on foreign business under existing
conditions. In the informed quarters
1T was stated that the domestic
! banking and brokerage position is
quite sound and that nothing is
| known of any difficulties of a dts
turbing character.
In confirmation Of this view, it was
pointed out that the bears executed
a sharp about face after having
pressed their initial advantage and
after good buying appeared at the
lower prices. In general, the view
| that good fall business is in prospect
was maintained. The sluggishness
IF the markets was explained on the
| basis of the season of the year and
the conservatism of buyers in placing
new orders for forward delivery.
Some signs of increased buying
were observed in the steel trade.
Certain manufacturers were stated
TO have booked orders in June at a
| rate materially exceeding that of
May. production meanwhile con-
tinues high and consumers are re-
ported to be still taking deliveries
without hesitation. Cancellations
continue to be notable for the alb
sence. Some loss of output is, how
ever, anticipated, partly on account
| of the weather and partly because
the intensive spring campaign makes
1t necessary to shut down certain
plants for repairs.
Another indication of the mainten-
ance of recent extraordinary levels
VI dCtNlty III INDUSTRY, as OlStlnCC
from new buying for future delivery,
is furnished by railroad car loading
statistics Loadings continue to ex-
coed one million cars week WHICH,
considering the season of the year,
is wholly exceptional. Shipments of
| general merchandise are, further
more, heavy.
Cotton prices showed further f1uc-
tuations over a rather wide range in
response to the vagaries of specula-
tive sentiment. The undcrtone was,
however, rather good. 1t is realized
that domestic consumption has re-
manned extremely high, but it is
pointed out that as an offset, export
demand has dimnised to the small
est scale in several years. Weather
in the growing areas has been fay
orablc.
Perhaps the poorest showing has
been made by the grain markets.
Wheat has been consistently heavy
and the July delivery declined TO
within , SIS cents of one dollar a
bushel. Since creation of additional
farm credit facilities and govern
ment regulation of trading have
failed to stem the decline, financial
quarters give more and more en-
phasis to the importance of foreign
markets. 1t is stated that foreign
buying has fallen off greatly since
the occupation of the Ruhr.