Daily Kennebec journal., 1925-08-31
Financial and
Money Markets
Uncertain Past Week

Uncertain Past Week
New York. Aug. 30.-(AP)-Price
movements in this weeks financial ana
commodity markets were generally m
| decisive, which is characteristic OF
this period of the year, but reaction
ary tendencies predominated, partfcu-
larly in cotton and wheat The most
outstanding development of the week
was the announcement of the Church
| ill-Caillaux agreement on the funding
of the French debt to Great Britain,
but because of it's being conditional on
similar terms being accorded France
| by the United States, Wall Street
showed disposition to withhold judg-
ment pending the meeting of Finance
Minister Caillaux with the American
debt commission late next month
Pool operations provided the chief
activity in the stock market with mer-
ger and dividend rumors again play
| ing a large part in the advance OF
many issues. Every bulge in prices
| met with large volume of profit TAX
| ing which was augmented by sporadic
bear selling. Bond prices held firm
with the weeks total offerings the
lowest of the year.
The reaction in cotton prices reflect
ed the growing belief that this years
crop will more than provide for all do
mestic and foreign requirements. Re
vised upward estimates of the wheat
crop ais oaccounted fer the selling OF
grain futures.
Money rates were relativesly firm on
the withdrawal of funds in anticipa-
tion of heavy month-end requirements,
but the rate on call loans eased just
before the close on Friday. one or
| the most significant developments IN
the money market was the stiffening
| of the asking rates on bankers ac-'
| ceptances.
Foreign exchanges yielded several
points Of interest. Norwegian and
Danish kroner rallied to the highest
| levels of the year and Brazilian nil
reis touched the highest level since
| 1921 in reflectiong of that countrys
defiatfon program. Polish Zlotys ral-
| lied nearly a cent on announcement or
| a $4,000 600 credit to the Bank or
| Poland by the New York Federal Re
| serve Bank. Slight easing of ster1hg
exchange reflected increased offerings
! of cotton bills. With the summer sea-
| son drawing to a close, evidences OF
! improving trade and promises of FUR
| ther expansion in the tutumn contin-
ued to accumulate, but an appraisal of
| the exact state of business proved diff
fcut. The familiar measures of in
| dustriaI activity indicated little change
| in conditions.
! Reports of expanded retail trade
| from the south and west confirmed
recent expectations that the agricul-
tural prosperity which has visited
| these sections would be passed on to
/ the benefit of other lines of business.
| Assured of good crops and fair prices
| for the second consecutive year, the
! farmer is now making purchases
which were deferred during the pre-
ceding lean" years. Manufacturers
of automobils and agriculture ma
i chinery are feeling the effects of this
increased buying power.
| Moderate gains were recorded in
/ the basic industries, notably steel,
/ bookings of rolled steel products at
| some mills We're the largest since last
November and the heaviest buyers
were the farm implement and tractor
manufacturers.
| Reports from the railroad field last
week gave .unmistakable evidence of
the high degree of prosperity which
the carriers ere enjoying. Both rec
ord breaking car loadings, and a
series of gratifying earnings state
ItleHlS LOT July, teSlllleu 10 lil6 mag
nitude of the country's trade and the
increased efficiency of the railroads
| in handling it, Gross revenues in
some cases were the greatest for any
month since the war.
The most troublesome problem
/ confronting the business world is the
| forthcoming suspension of anthracite
mining on September /, which will
! involve the closing of more than
! 250,000 men out of work. Little un-
eaSiness over the situa ton. however,
was apparent in the financial mar
kets last week.
| The trend Of bond prices last week
continued upward but there were no
Developments of commanding inter-
est in trading or in the field of new
offerings. The markets loss of ami
nation was attributed mainly to the
restrictive influence of firmer money
rates.
Considerable uncertainty prevailed
over the money situation. lie de-
veloped during the week that many
banks had called back short term
funds from London since the lower
ing of the bank rate but the increas-
, ing demands of trade here made it
| doubtful that much of the money
would be available for investment in
the bond market. Federal reserve
officials reported a heavy movement
to the south and west for crop NOV
ing and commercial purposes.
Awards of several state and NUM-
cipal bond issues early in September
and the necessity of refunding
! number of maturing loans are ex-
, pected to swell the volume of busi-
| ness in tho ueyf fortpiobt S,oaII
loan will be offered here this week
! for tn Crespi cotton works of Italy.