Daily Kennebec journal., 1923-07-09

New York, July 8 (By A. P)-
Unusual events such as the turn of
the half year, the early July holi-
days and an advance in the band of
England's discount rate were DOM
mating influences in the financial
markets of the past week.
Passage of the July 1 settlements
resulted, as had been anticipated, in
a distinct easing in the money mar
ket, call money on the New York
Stock Exchange lending as low as
four per cent. Meanwhile the weekly
Federal Reserve Statement showed
that member banks had borrowed
heavily from the reserve system,
partly to secure currency to meet the
July travel demands and to provide
the extra credit called for by the
mid-year dividend disbursements
and the like.
Accompanying these changes came
marked easing in the pressure of
liquidation which had been appar-
ent in the chief speculative markets.
A certain amount of selling, both by
tired longs and traders on the short
side was apparent in the stock mar
ket during the early part of the week,
but the volume was not comparable
to that of the week before and the
tone grew steadier as the week clos
ed. 1t was generally considered in
the financial district that the neces-
sity. for liquidation had diminished
and that bearish traders We're less
inclined to pursue their activities.
Similar conditions prevailed in the
cotton market, Mondays government
crop estimate reported greater in
crease in acreage than had been eX-
higher condition and larger yield,
There was a feeling that the 11.412,-
900 bales which the Department of
Agriculture forecast may turn out to
be somewhat in excess of the actual
crop. Nevertheless cotton was solid
rather freely on the report and gave
ground rather readily. Before the
week closed, however a substantial
recovery occurred. Wheat remained
quiet with the price of the July fu-
ture f1uctuating around $1.03. The
trade is expecting today's govern
ment crop estimate to show total
yield of about S35,000,000 bushels.
Reports from industrial districts
of activity. Pig iron production in
June, while slightly smaller than the
record breaking May performance.
exceeded that in any other month,
the small falling off being accounted
for by such factors as weather con-
ditions. One more blast furnace was
active on July 1 than at the start OF
the previous month and early July
shut downs were limited for the
most part to July 4. Steel products
were stated to be passing into con-
sumption readily, consumers showing
no disposition to avoid deliveries.
Prices remained firm and the trade
looked for a continuance of the pres
ent scale of operations.
Railroad car loadings again added
their testiomny to the maintenance
of industrial momentum. The rate
has now exceeded one million cars
a. week for five consecutive weeks,
thus equalling the record made in
the fall of 1920 and exceeding by
considerable margin any perfor-
nance made at this season OF the
year. ;.
With regard to the resumption of
buying for forward delivery, which
is the question which has been oc-
cupying the attention of the markets
for sometime. nothing new develop
cd. It is still considered early. how
ever. to forecast the trend OF fall
trade.
The advance in the Bank OF Eng
lands discount rate from three TO
four per cent was not considered in
imical to the domestic situation.