The Birmingham age-herald., 1924-08-04
EASE IN MONEY KEEPS MARKET
 ON EVEN KEEL
U. s. Steel Report De- mands AttentiOn-Oils
 Remain Weak
tBy Associated Press.)


 NEW YORK, Aug. 2.-Continued ease in money again contributed to firmness in the chief financial and commodity markets during the past week. The 2 per cent rate for call money still ruled on the New York stock exchange, but there was a fur ther slight easing in the market for bankers acceptances.
 The federal reserve statements indi- cated that no change had come into the monetary and banking situation. Earning assets showed a sizeable in crease but this was due primarily to heavy open market purchases of short tefm government paper! An increase in discounts was too small to be of any particular significance. Summer dull ness in the trade was, reflected in an- other drop in circulation.
 The monthly bulletin issued by the New York Federal Reserve bank em- phasized the important effect that the paying off Of indebtedness by member banks has had on open market rates. When the member banks extinguished their borrowing at the reserve bank in June, the price of money fell rapid ly. Gold imports then became the basis for increased reserves and credit resources instead of going to pay off debts at the central bank. Gold is still coming in, although not at so rapid rate and commercial demands for credit have not expanded sufficiently to alter the situation.
 U. s. Steel Report :.
 Much attention was paid in financial and business. quarters to the second quarter earning statement of the United States Steel corporation. Earn ings of $41, ,300,0OO, or $3.44 share on common stock, were better than had been generally expected. It was point ed out, however, that the steel corpora tion's order book was in much better condition than those of the independent manufacturers and that this allowed the corporation to maintain a fairly high rate of operations during the sec ond quarter, despite the sharp falling off in new buying. All operations during July fell off to about 45 per cent of capacity, as compared with an average of perhaps 70 per cent dur ing April, May and June, and as new business is coming in at modest rate, 1t is expected the earnings for the third quarter will not be as good as those for the second.
 New buying of steel products during July was better than anticipated and was better in the second-half of the month than in the first. Nevertheless prices have declined during the inter- val and the current improvement, which is due to the drawing down of stocks, is not expected to rally tlFe market. Chairman Gary seemed in- clined to stand on his previous pre- diction, ,Gwhich was for a real improve ment during the last three months of the year.
 Oils Stin Weak
 Farm products, such as grain and cotton, were actively traded in and held relatively firm. They are now affected principally by weather condi- tion reports. Oil prices again were weak, thus reflecting the excessive production that has affected the i'm dustry for some time past.
 As the week closed, n more hopeful view prevailed in financial circles with regard to the London conference and the chances for the adoption of the Dawes plan. It was felt that the French concessions in the matter of determining possible German defaults opened the way for offering security that would satisfy the worlds investors in the matter of subscribing to a Ger man loan. At the same time it was pointed out that the Germans will have to be heard, from and that the French parliament also must pass on the re- suits of the conference. Much will depend, in the opinion of bankers, on the spirit with which the allies and GermanY conclmda tha .neontiatinns