Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-10-06
GRAIN AND COTTON
\ RALLIES FEATURE
WEEKS MARKETS

New York, Oct. 5-(By A. Ply
Much attention was directed in bust
ness and financial circles last week
to further rallies in the grain mar
kets, The leading deliveries of
wheat sold above $50, setting new
tops for the current year. Rye also
reached a new high price. While
advances in corn were due partly
to crop damage. rallies in wheat and
rye were caused by strong foreign
buying, stimulated by reports of
smaller crops in other parts OF the
world.
Cotton also continued the rally
that started when the department
OF agriculture reduced its crop esti-
mate to 1o,596,OOO bales. The prin-
cipal futures sold around - cents,
or approximately five cents above
the prices OF two weeks ago. 1t is
now recognized that the market had
been oversold before the last gov
eminent crop report was issued. In
addition, however. foreign buying
also has been factor here and eX-
port clearances have been heavy.
Coincident with these signs of
more liberal foreign purchasing.
have come reports suggesting that
the much discussed German loan is
impending, Dispatches from Lon
don indicated that the negotiations
had reached an advanced stage and
that a public offering by the mid
die of the month was probable. In
formation as to coupon rate and
price is vague. but investment bank
ers feel that an issue on something
less than an = per cent basis should
prove attractive in the present easy
money market. Successful fiotation
of German loan, it is generally
expected. will further stimulate for
eign purchasing and open the way
for additional foreign loans.
In the domestic situation, inter-
est was displayed in Tightening
money market. an advance in the
call rate on the New York stock
exchange to > per cent was attri-
buted to the demands occasioned by
October ! settlements. The rate de-
clined to = IL per cent before the
week closed.
Meanwhile the Federal Reserve
statements revealed a small increase
in discounts, SiZeable increase in cir
culation and fairly large loss in
gold reserves. The reserve banks
continued their policy of buying pa
per heavily in the open market, the
effect of which is to keep rates easy.
Reports from the steel industry
indicated that the confusion occa-
stoned by the change in the system
of basing prices still was eXerting a
restrictive effect on buying. Good
Judges believed, however, that part
of the slackening during September
was due to other causes. with the
Independent manufacturers operat-
ing at 81 per cent of capacity and
the L.. s. Steel Corporations 6j per
cent.
Car loadings continue to furnish
the bright spot in the Industrial PIC
ture. partly because they indicate
heavy distribution of goods and
partly because they mean good earn
ings for the railroads. During the
week ended Sept. 20, approximately
100000 cars were loaded with rev
enue freight. This figure exceeded
that for the corresponding week last
wear and is close to the record week
for all time. With earnings good.
the railroads are remaining liberal
purchasers of equipment and mate
rial.
Further reductions in gasoline and
oil prices were interpreted as the
natural result of continued over
production. Consumption of oil
products has broken all previous
records but the output of oil has
been even greater. 1t is thought
that present price cuts. if maintained
sufficiently long, will bring a nat
ural correction of the situation.