Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-08-13

New York. Aug. 12-(By A. Ply
Although holidays at home and
abroad made last weeks market less
active and significant than is usual
ly the case in midsummer. most
commentators on financial and COM
mercial activities considered that the
undertone was somewhat better. At
the start Of the week a certain quiet
optimism was noticeable, this being
ascribed partly to growing conf
dence that the change in executives
would not result unfavorably and
partly to reinsurance over business
prospects. While Industrial news con-
tlnue rather inconclusive, more on
timism was shown over the deyelop.
ment of a new forward buying move
ment. Greater firmness in the com.
modify markets also was an encour.
aging factor
In the steel industry production
continued to run from 10 to 20 per-
cent below the peak reached in the
spring. The trade believes, how
ever, that consumption is being
maintained at a high rate and ex-
plains the reduction in deliveries as
Delng due to the fact that consumers
are now eating into stocks instead of
pulldlng them up as was the case
curing the spring. Pig iron prices
nave shown further recessions, but
IN general buying of this commodity
-
IN the market. Meanwhile the sra-
uual introduction of the eight hour
day which is under way, is expected
to reduce production to the rate of
Shipment and to steady steel prices.
Another indication that industrial
activity is being maintained at a high
is furnished by the latest increase in
railroad car loadings In the week
ended July %. over 1.O41 900 cars
were loaded with revenue freight. a
performance which breaks all pre-
Vlous records. The increased move
ment of grain from the new crop is
partly responsible for this gain, but
the shipments of general. merchan-
disc continue to surpass those in any
other year.
Absence of a break in the drought
in the southwest and buying on fur.
ther bullinsh reflections on the week
Traders realize that the crop has
now reached critical stage and that
YIELD of about IL 500 1000 bales is a
distinct possibility. AS result,
sentiment, which was rather demon
allied after the collapse of the bull
speculation in the July delivery, has
become much steadier.
Wheat prices also benefit during
the past week by a bullish govern
ment crop estimate. AS of August.
the department of agriculture esti-
mates the total yield of both winter
and spring wheat at 10000 600
bushels, a figure which represents a
decrease of 2S,00O,0OO bushels as
compared with the estimate of the
month before and compares with
private estimates in the neighbour
hood of S10,OO0,O00 bushels. Lastr
years actual production amounted
to S62,2O4.OOO bushels. AS a result
OF this unexpectedly favorable re-
port, the September future recovered
) IL cents and closed the week at
around 80 cents.
Marked weakness in the currency
of the continental allies was the fea-
ture of the foreign exchange market.
French and Belgian francs declined
to new low record for all time, the
French franc touching $50 cents.
This decline was based largely on
extreme decentralization in the Ger
man mark which fell to 20 cents for
a million marks and to indication
that France and German were I'M
likely to reach an early agreement.
Sterling and most of the other Eu-
ropean exchanges meanwhile held
firm. thus lending color to the theory
that the decline in the currencies of
the continental allies is due to the
opinion that Germany is becoming a
more unsatisfactory creditor for
France, Belgium and Italy.