Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-15
VOLUME Of STOCK
TRADING LOWER
Business Takes Strides
Brokers' Loans Become
Topic of Discussion.
RY CHARLES r. SPE.ARE.
snatch 10 The Star.

BY CHARLES r. SPEARE.
Special Dispatch to The Star
NEW YORK. January 1.-THE mo-
nren,um of business this week has in
creased hut the volume Of stock mar
kct tranSa ctions has decreased since
Tuesday. followinc all average decline
IN prices Of points and the largest
turnover since March. 1925.
This tapering off in activity repre-
Sents the more cautious attitude oi
spectators and the general DISPOSE
ton to mark time while the subject
OF brokers loans and money rates is
being discussed and policies are being
formulated that may have great
deal TO do with the movements OF Sc
curi.ies in the next few months.
Trade is or the mend i'll several di'
rect:ons. The Improvement is most
pronounced in the iron and steel in
dustry. This was Indicated in the in
crease in the untitled tonnage orders
OF the United States Steel Corpora
ton OF $4,000 tons reported few
days ago and in the fact that the
mills Of the Pittsburgh distriC; now
are working at g per cent Of car2c-
ity. compared with 60 per cent III the
latter part of December.
Railroad Orders Help.
Demands by the railroads and hY
manufacturers NJ automobiles nave
helped to stimulate trade althoaSh
Tho prices al which iron ana steel
products are being sold do no; leav"
much margin OF profit. II is en-
couracinc however. 10 report that
the deadlock between buyers and
sellers has been broken and that inc
idle capacity Of the mills IS gradually
being reduced.
II il were not for the elements Of
serious price cutting the returns from
the autcnlotiVe industry would also I've
stimulating. Due in part 10 the display
Of new models. there has been
greater attendance al the annual au'
tonobile show here than ever before.
Orders for future delivery have been
large. Production for this season is
active. The number Of employed IN
Detroit has steadily risen. and is to-
Gay several thousand in excess Of
year ago. The president Of the Gen
erai Motors Corporation stated this
week that the first quarter of 1928
will witness not only a larger protfuc-
ton OF General Motors products. hist
profits Ia excess OF the first three
months Of 1927. Already there have
been advance orders for approximately
$50. 600 new Fords.
The credit position Of number Of
the producing companies after several
years Of large earnings Is one Of the
outsta nding features Of the country's
business. The Nash Motor Co. for in
stance. at the end OF 1927 showed on
its balance sheet over $4,000 600 in
Ch ND ~ ( ss,C
nlent and other prime securities. II
IS estimated that between i2,000 600
and l5,0e0.000 people in the United
States row are directly affected by the
prosperity or reverses OF the automo-
tive industry.
Industry Exhibits Confidence.
With these primary industries iron
and steel and automobiles. forging
ahead slowly, there is justification for
the feeling of greater confidence re-
Gently display in industrial circles,
Other Tires Of business have not
shown much change and are perhaps
too deep in the rat 70 emerge quickly
This Is true of Oil. although The rate
Of crude production is slowly decreas-
irS and from time 10 time there are
symptoms pointing 10 a perma rent
tr prices.
one great Industry that dealing
with packing house products and
representing a total turnover Of abou:
6-.ooe 100000 has been passing through
q critical stage. With a gross btisi.
ress in 1927 IF $500 600 900. Armour
d co. earned barely sufficient 10 pay
the interest on It's bonds. Fortunately
the conditions which affected his
trade have been removed and q
brighter outlook favors the packers.
IL viii take some time for the in.
crcaFed orders nosx or the books OF
the iron and steel mills and Of the
automobile manufacturers 30 be-
worked up into finished material for
the railroads 10 hauI. Therefore. the
recovery in railroad earnings is come
distance off. Their loadings continue
10 fail below last year and compare
unfsvorab!y with corresponding peri.
ocs Tor several years back. 4 careful
analysis Of the monthly returns Of
tire public utilities also betrays a
rflackening in industrial demand for
power and a siog Ynontl.t0norfh
recession in gross earnings comra red
With the first quarter of 1927. Mos.
OF The large public utility operating
corspa iies however. have been able to
OFFSET this tendency by means O.
greater efficiency and the use II larger
generating and ira nEn1isslo, units
stoeks Discount Improvement.
Thefe conditions the stock market
hss beer Glecounting for some time.
Their arrival has failed 20 stimulate
interest IN the secullties most bene-
fite6. For months prices have t.en
ris3ttg against the evidence ihat bust.
ness "ss declining quite rapidly ard
"oulG nake sn ureatisfaciorv show
ing for the bart quarter u 1927. This
CSC rn' matter ~ long as money re
fAairee cary aDd there was 10 re.
strain On the ~ nkf IN the rsatter If
i'sflrg generously o. Collateral wf3iie
ether avenues e profitable enpl9y-
hrnf ~ thcir funds were eI0sf6
Jhe increase 30 brokers loans IN
!2'"einbeF - oyer sZ91 eaG 800 and "
stvV 81" 900 ri tie I3ef tao %eeks has
Dp1Risf TINS matter Glt # the field "
a"s nen.4c d!sr1ss.ou into one where
practical dealing with il ss yecessnr ~.
f-n"e Pg@slGeft Coo!idge made The ss.
'gf3sn.ng statement ~eek ago tISt
tF Hss ~ the opinion tn&t ~" record.
leaking increase IN fFGkefs' 1oa
he'd ~ the FeGHrsi Reserve fnen1iper
vsDks IN not large enough - - ns4 9 -.
brf@ #DF1 bic Comment, there EaE tF-er
pressure m al rides ~ compel the
Pe9etsI G.spsSe leoaYd - Efe iir in
fYenos ~ che~f the joan HKlta 1s3ft.
3D~f whY fhe srf"e ~ ibe adfnfujs
ff3f.on snrU1 isye been raised b.
TIDpoff - cond.tbDu 'Ast has bong
fefu InGWn ~ iye ;D}snsral ~ the Leri
tEtffeFsF II the investment gBafkrf
End ~ The bsnls. IL il G3Gtlit - de,