Evening star., 1927-10-16
SLOW TRADE NEWS
DEPRESSES STOCKS
Drop in Steel and Rail Earn
ings Offset by Good Posi-
ton of Farmers.
by CHARLES r. SPEARE.
ia, Dispatch 70 The sta

8 NEW 1Otbh, OC(OUST To- llS uS
caines in the stock market this wee
have been of more significance thai
the rallies. They have been attends
by larger transactions, and the char
acter of the selling has appeared t
be better IAN that of the buying
From various angles it is evident tha
speculative shares which have beel
leading the long rise have been pass
ing from strong into weaker hands.
Many persons who have been unwil
ing for months to recognize the unsatiS
factory Industrial and loan situation
as factors bearing on prices of stocks
are beginning to admit that they hav
a direct relation to prices. Conse
quently. their enthusiasm has ebbe'
somewhat.
The middle of October has arrive,
without bringing in the volume of new
orders that had been expected in TIL
various lines Of trade, or diminish
ing the volume of credit that has beel
extended through brokers to accommo
date a speculative market perched OIL
the highest pinnacle of prices in many
years. These delays mean that ther,
will be a smaller percentage of profits
applicable to common stocks for th'
last quarter of 1927.
Steel, Railroad Profits Decline.
The situation in the iron and Stee
industry is typical of many others
Postponement of orders is carried over
from week to week. The volume oi
untitled tonnage of the United States
Steel Corporation on the first day oi
October was the smallest since the
early days Of this corporations career
Prices aSe being shaded in order to at
tract business. The profits of all the
steel manufacturers, and especially
those of some of the small independ
ents, are discouraging. The General
Electric Co. has reported bookings fol
the quarter ended September 80 OF
$77, ,420, 900. compared with $S1 ,5S7, ,917
in the same period of 1926, and de-
crease in the nine months of this year
of $4,000, 900.
Railroad earnings continue to show
smaller figures than a year ago, and
while car loadings have come up well
from the Midsummer minimum, they
are of smaller proportions than at
this time last year. Automobile out
put has contracted. Here. again,
events in the industry that had been
forecast for September have not ap-
peared in October. and may be de-
layed until November or December.
Unemployment is increasing in active
industrial centers.
Farmers Position Better.
On the other side of the picture
is the splendid recovery that has
taken place in the past month in
the condition of corn and in Spring
wheat and the ability of the cotton
crop in September to hold to about
the August level of probable yield.
Corn gained nearly 1000, 900 bushels
last month and is now expected to
show a return 329,000,0o0 bushels
greater than in July. This has had a
pronounced effect on the price Of corn.
which this week broke below 90
cents q bushel for the December
opticn, compared with $1.20 three
months ago.
The position of the farmer, there
fore, is decidedly better than last
year. In spite of the 30.cent drop
in corn, it is higher than it was in
the Fall of 1926 and the selling prices
of cattle and cotton are very much
more to the advantage of the pro.
ducer. Wheat will measure 10S, ,0O0,-
600 bushels more than was harvested
last year. Fortunately the increase
In this crop has taken place in those
sections Of the country that needed
q larger money return in order to
balance the effect of years of mis-
fortune. The influence Of this is to
be seen In the liquidation of bank
loans, some Of which have been car
ried a long time, and smaller Dor.
Fowings at the banks to cover this
seasons requirements.
OIL and Metals Up Slightly.
There has been a little improve.
ment in the conditions surrounding
some OF the metals and a gradual,
though not very influential, gain in
the statistical condition of crude oil.
Most of the producers who are not
refiners as well face serious conditions.
"A further demand on them to conserve
their cash resources will probably
cause the reduction or cutting off of
dividends now being paid on common
stocks.
From various sources it is known
that the volume Of installment buying
IS gradually decreasing. This is
responsible for part Of the curtail-
ment In output of industries manu-.
featuring articles of a semi.luxury
type. This may mean that the market
for goods of this class has become
saturated, or that, anticipating a
period Of reduced employment, the
buying public Is more cautious and is
taking what it actually needs and can
pay for, rather than committing itself
TO Iong-term engagements. Certainly
the tendency toward hand.to-mouth
buying has never been more positive
than 1t is today.
Politics Begins to Figure.
AS Congress will convene In about
six weeks for it's last session before
the presidential campaign, it is only
natural that there should be a great
deal OF political discussion and attempt
Al an early appraisal of candidates
and their policies.
The incident of the French tarin
mas awakened discussion of the
entire question of protective tariffs
ana this subject. with prohibition will
-be the one over which the Campaign
- likely to be fought. Linked with II
1s the improvement in the economic
ana poItica1 conditions OF Great Rri
'aln' france, Germany, Italy, Poland
aho belglum-all except Great Britain
large borrowers in the United States
10 develop their internal resources q nd
strengthen their Industrial and aor;
cultural conditions so that they ma
nave more TO sell to present cI,ston,
ers OF the United States and les.
neec to buy those products of which
we have surplus.
our loans to Germany in the las
iour years approximate 81 900 000 60o
several OF this weeks loans and thos.
that are pending have been to stabiliz,
currencies and readjust internal an,
1xternal debts. This is all in the in
~%erest OF improving internationa
credit, and, indirectly, of broadeninI
markets for American investment
and, temporarily, for American goods
Foreign Exchanges Strong.
More attention is being given to tn
strength in sterling and in some O
the continental exchanges. Since Al
gust / the rate on London has at
vanced nearly i II cents in the pound
= l&i> 49,. l.