The Birmingham age-herald., 1924-09-08
ONEPOINT BOOST IN CALL MONEY
 MARKS WEEK
Federal Reserve Expected To Check Sharp
 Upturn
ORx Associated Pressl


 NEW YORK, Sept. With the call money rate on the New York stock exchange advancing to three per cent, after having been held at two per cent since early in July, interest in finan- cial and business quarters centered last week in the money market.
 It was the general opinion that the higher change was due more immediate ly to first of the month demands, which were rather heavy. However, the firmer tendency recently displayed by bankers acceptance of time money also were noted and there. was a con siderable body of opinion which held that other than transitory influences were at work.
 Some observers pointed out for ex- ample that gold imports had slackened, and suggested that a reparations set clement might reverse the flow of the yellow metal. Others made the point that domestic industry, having touched low point in July, was now recover ing. An increase of activity of this kind, taken with the usual pick up in the business that comes in the autumn should, according to these financiers, cause larger demands for credit.
 Reserve Stands On Guard
 While a hardening in rates at this time was not considered surprising, there was little disposition to expect any sudden or large change in the character of the money market. It was felt that the federal reserve sys- tenn would stand in the way of any sharp upturn in rates. The reserve banks discounts are small, while their lending power is tremendous. The board is on record as favoring cheap money when trade and industry are recovering from depression and the open market purchases of short term paper that the reserve banks have made during the past few months show that the authorities at the several institu- tions are not upsympathetic with the boards policy.
 Car loading statistics indicated that the usual fall acceleration in activity was developing. Loadings for the week ended August g, were the larg- est of the year and amounted to 9S2,- 900 cars. Heavy grain shipments again were feature. While the freight move ment is showing tile normal seasonal gain, it is still running about 8 per cent below the record performances of last year.
 Reports op pig iron production dur ing August revealed 6 per cent in crease as compared with July. Mean while advices from the steel making centers indicated that steel production for the country as whole was above 90 per cent of capacity and perhaps close to 55 per cent. The pig iron market was fairly firm but that for steel products failed to exhibit a con- vincing tendency to stabilize. Produc- tive capacity is large, business is rela- lively small and competition is active. Although the corner seems to have been turned as far as production is concern ed, it is still buyers market in steel.
 Commodities Mark Time
 The chief commodity markets marked time with prices rather irregular. Both cotton and wheat traders are awaiting government crop reports. The cotton forecast will be published today, while that on wheat will be given out tOrnor- row. Expectations with regard to the estimated cotton yield are somewhat mixed. Prices have declined about one cent per pound since the government report of two weeks ago raised the es- innate to 12,956, 900 bales. No great change from this figure is anticipated
 Meanwhile there are signs that Flu ropeans have been buying American grain and cotton. Smaller foreign wheat crops have stimulated prices of our grain while cotton has been helped by the better European political out look. It is to these purchases rather than to any misgivings as to the pro- gress of the separations negotiations that local bankers attribute the reac- tions in foreign exchange rates that oc- cured during the past week. As a matter of fact, most bankers think that the separations matter is developing favorably and that things will be in proper shape for a German loan some time in October.