Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-07-23
STRENGTHENING UP
OF COMMODITY and
FINANCIAL markets

New York. July 22.-(By A. Ply
Firmer market for both securities and
commodities have been the feature of
the past week in business and finance
In some cases, such as copper, this
was attributed to the imminence Of
new buying movements: in others 1t
was considered to be due to the strong
situation which normally develops
after year settlements have been made
and July 1 dividends and interest pay
ments have been distributed. There
was also a disposition to emphasize
the disregard by the markets of what
might be considered bad news, this be-
ing taken s an indication of the ma
terial STRENGTHENING of the speculative
position which was brought about by
the liquidation of the late spring.
One of the encouraging events of the
week was the check imposed upon the
decline in wheat prices. After the lead
ing futures had declined to the vicinity
of 90 cents a pushed a sudden rebound
carried them back up to about the dol
lar level. No particular explanation of
the rally was given other than that it
was the result Of buying induced by
the relative cheapness of the commod-
/ ity. Nevertheless the recovery was
generally pleasing and served to en-
courage upward movements in the other
markets.
Another factor which contributed to
the more cheerful feeling which was in
evidence was greater optimism over the
progress of the reparationS negotia-
tions. Gables from abroad brought ru-
Nf Il.
settlement and her Willingness to aban-
don her stand on passive resistance in
the Ruhr. In addition it was reported
that the French attitude toward the
impending British note would not be as
uncompromising as had been reported
earlier. This revived hopes that the
British reply to Germany might fur
nish the basis for an early settlement.
In well-informed quarters there was
disposition to give much weight to the
latest efforts to reach a settlement and
to point out the progress which has
been and is being made. At the same
time it was suggested that the nego-
tiationS are likely to cover a period of
weeks and months rather than of days
and weeks.
Industrial ncwS generally was con-
sistent with that of recent weeks. Rail-
road car loadings for the week ended
July fell below the million mark but
this was due purely to the holiday, the
performance literally exceeding the
previous record for this particular
week. Meanwhile the railroads report
cd further gains in the matter of
equipment. repairs, and added to their
surplus of freight cars in good condi-
ton.
Reports from the steel industry. on
the other hand. carried the news of A
further reduction in production, which
was due not only to the season and
the need for repairing plants, but to
diminution of untitled orders. Steel
prices remained firm but it was stated
in trade circle that quotations are to
certain degree nominal and that many
buyers expect lower prices during the
fall. If this situation develops it will
be due partly to the declines which
have taken place in coal. coke and pig
iron. and partly to the falling off of de-
mand which was so urgent during the
past spring. On the whole, tho opinion
prevailed that convincing evidence as
to the character of fall buying must
still be awaited.
No material change occurred in the
money situation. The reserve bank
statements showed that the extra cred
it and currency which was created to
meet the early July demand have been
returned and that the condition of the
system is similar to that existing dur
ing the latter part of July.