Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-30
MONEY ABUNDANT
FOR TRADE NEEDS
Investments Made Carefully,
HoWever-SteeI Situation
Is Growing Better.

Special Dispatch to The Star.


NEW YORK. July 30.-The banks
ing incident to the movement of the
crops. There is a great volume of
funds seeking investment and this is
calculated to aid commerce and IN
dustry materially in the next two
months. Investments. however, are
being sought with more care and more
caution than ever before.
The situation in the oil industry
undoubtedly will be responsible for
much Of the new financing. Com
panies which have been unable to
pinch in production of all their crude
and unwilling to sell it or turn it into
gasoline have had to store it. This
has been extremely costly and in
many cases has necessitated the cree
ton of additional storage capacity.
Some companies managed it from sur
plus funds. but many had to sell new
securities to raise the necessary cash.
There Is a feeling that the worst eff
fects of the over production in the
Seminole field have been discounted,
but lot of oil will have to pass into
the hands Of consumers before the
losses are made up.
Russian Oil Factor.
The discussions as to the purchase
Of Russian oil have not tended to in
duce the small producers In the Sen
mole field to reduce their activities.
since they feel that If they cut output
and thus raise prices, their own prod
uct may come into competition in
roundabout way with cheap Russian
oil.
The situation in steel, which is grow
ing more satisfactory, IS the surest in
dicator Of the tendencies In coal. If
steel men anticipated that the coal
strike would grow more menacing or
that the non-union fields would fail to
supply them with requisite tonnage,
steel prices and operations would not
be as steady as they are.
The figures on automobile produc-
ton so far this year are slightly
under those for the corresponding
period of 1926, but this does not take
account of the fact that one of the
largest producers has been putting out
practically no cars for weeks. The
business is as large, but the larger
part Of it is in fewer hands.
Building is holding up remarkably,
although some skilled men are idle in
certain sections. The lumber situation
is showing slightly more strength, but
cement is facing the fact that capac-
ity of plants now is larger than con-
umpton demands. The non-ferrous
metals are stiffening in price and buy
ing has been fairly active, largely for
foreign account. Production in lead,
copper, zinc and silver continues high.
Cotton Aids South.
The better statistical position of cot
ton has had the effect of strengthen
ing all lines of business in the South.
In that section they feel that abandon
ment of acreage, restriction OF plant
ing. the boil weevil and heavy ship
ments abroad all point to higher prices
by ginning time, and they are buying
other commodities in consequence.
The progress of the tobacco manu-
featuring companies has been remark.
able Cigarette sales are up 10 to 80
per cent for some lines. The cheaper
cigars also are selling well, and the
prospect seems bright for higher prices
to the grower.
Apparel is selling better in the
wholesale markets, and the outlook
for Fall retail trade Is regarded as
good, but the leading wooden manufac-
turer continues to operate its plants
at so per cent of capacity or under. 1t
will open it's staple and semi-staple
lines for mems wear next Monday,
three weeks later than year ago.
This delay indicates subnormal de-
mand. Wool prices are firm. On the
other hand, the cotton mills Of Georgia
are estimated by T. X. Glenn, presi.
dent of the Georgia Manufacturers
Association, to be operating at ITO to
125 per cent of normal single shift
capacity.
Earnings of the electrical equipment
companies are setting new high rec
cords. In one case the gain for the
year so far has been nearly 10 per
cent.