The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-07-28
eau TON RULES
TRADING ON
EXCHANGE
Weekly Review by w. P. Ed
wards Shows Nervous Mar
ket-Prices Fall Slightly.
Ry w. p. EDWARDS.
Copyright, 1928. by Cosmopolitan
News SerVice,)

nv w. L. EDW ARDS.
Copyright. 1923. by Cosmopolitan
News Service.)
NEW YORK, July 2S.-The i'm.
provement in sentiment manifested
on the stock exchange during the
greater part of this month was
not fully sustained in the past
week. Opinion was not outspokenly
bearish; in fact, many in the imam
cial district ascribed the reaction
airy tendencies to conditions within
The market itself, but pronounced
degree of nervousness was apparent,
tempering any optimistic tone re-
garding the immediate outlook.
Domestic rather than foreign de-
velopments were responsible for
this change. Fresh evidence pre-
sents itself daily that the securities
market is paying close attention to
the movements in the commodity
markets. Wall Street watched with
apprehension the renewed weak
ness in the "cash markets." where
five important staples dropped to
new low records for the year. These
were wheat, cotton, flour; coffee
and lard. In some quarters these
declines were construed as indi-
eating the beginning of a move
ment toward much lower levels, al
though the stability evinced later
in the week did not bear out this
prediction.
Influence of Wheat.
The influence a decline of an
important commodity like wheat
may have on the stock list was seen
in the heavy selling of shares of
| the northwestern railroads, especial
ly Great Northern and Northern
Pacific. Genuine liquidation was
| brought out, based on the fear
that necessary rate reduction,
| coupled with abnormal low earnings.
would adversely affect the dividend
| policy of these companies. The
appointment of a receiver for the
Minneapolis and st. Louis Railroad
| Company, classed among the espe-
cially weak roads, caused little
surprise. and, except in the securi-
ties directly involved, remained
without influence.
Present conditions in the domestic
| industry and teh outlook for the
| immediate future seemed by no
means discouraging. Loadings of
revenue freight again passed the
million mark in spite of repeated
reports Of Stacking business. Rail
road earnings statements made a
| remarkable showing, both as to
| gross and net income. The prices
named on mems clothing fabrics
| for spring by the American Wooden
| Company, averaging IL per cent
above those of last spring, werd
regarded AS a step to restore con-
| fidence among buyers.
New business in the steel centers
| showed definite signs of expanding,
according to leading trade journals,
| although pig iron displayed further
| easiness. The price situation in the
steel industry is being closely
watched in connection with the
movement toward elimination of the
twelve-hOur day, which would mean
| higher costs for finished products.
NO CANCELLATIONS.
While buying remains conserVa-
| tive, no cancellations have been en-
| countered, and no large inventories
! are hanging over the market. With
| money conditions sound and various
retail lines in need of restocking, a
| profitable amount of fall buying
| seems assured.
The darkest spot in the business
situation is the position of the
petroleum industry The decrease in
| imports from Mexican production
| induced both producers and refiners
to accumulate supplies, which are
| now far in excess of actual needs.
! In addition, gasoline content of Cali
fornia oil is nearly twice as great
as in other fields. AS a consequence,
| many concerns, in order to carry
| large inventories, will face the ne
| cessity for new financing or they
may cut their dividends. This alter.
! native, coupled with further price
| reductions, caused the selling of oil
| stocks last week. With buying
| power sadly impaired, the bears
| found it comparatively easy to de-
! press values, although better re
| sistance was met later in the week
| The uncertainty and the secrecy
! surrounding the Franco-British ne.
gotiations contributed to the pre-
| lailing caution. Wall Street was
not alarmed by the report Of the
run on the Reiche bank, the further
collapse of the mark and the out
breaks Of communism all over Ger
many, as it felt that through such
conditions the settlement of the
Ruhr problem would be FASTENED.
| Whether the return to anything ap-
preaching normal conditions would
be- really beneficial to this country
is doubted by many in the Wall
street district. 1t is pointed out
that while Germany would not be
able to buy our goods in great guam.
titles owing to her greatly reduced
buying power, she will flood our
markets with foreign products of
low costs. German competition is
already noticeable in the steel in.
dustry. German bars were recently
quoted So a ton below Pittsburgh
! schedules.