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Show OUTSIDE INFLUENCES CONTROL REACTIONS ON STOCK MARKET Public Enthusiasm for Speculation Causes Wide Fluctuations in Price of Industrials Having Limited Floating Supply. ; By W. S. COUSINS, Editor The American Banker. NEW YORK, Aug. 3. Control of the stock market is still in the hands of the outside public, the heavy buying and selling orders of which are the dominating factors in forcing prices one way or the other. So long as public enthusiasm for the speculative specu-lative market continues on the broad basis which obtains at the present time, It will be logical to look for a series of wide fluctuations, especially In stocks in which there is but a limited floating supply. sup-ply. It would probably be misstating the case to say that supply and demand. Is a bigger factor in determining prices in some securities than intrinsic values, yet experts in stock values are able to point out many disparities in the stock list, but are unable to figure out how a low dividend divi-dend stock with rather limited possibilities possibili-ties Is bid upward while its more prosperous pros-perous and promising neighbor is unable to make an impression. This is true In a large sense in the market for industrials, indus-trials, and may be partially explained by local preference for securities representing represent-ing an industry nuftr the home of investors. in-vestors. The market this week, following the rule set on Monday of the week preceding, opened rather quietly, with the aggregate of sales somewhat below the average of June and July. There was the customary bidding up of specialties which are mainly main-ly in the hands of pools and professionals, but where advances did occur they were mostly in the issues of companies which have very small capitalization, and which, because of this, can be carried on small margins. High Rates Continue. As a factor In relieving the money situation, a quiet stock market is to be desired for the month of August. The high rates which have prevailed during the past month have been a source of ; great discomfort to many stock exchange J houses, and no relief is expected for some ' time to come, unless, of course, there is a ' curtailment in speculation, which would ' bring about a further reduction of the loan account. Monev on call continues to rule around i 6 and 61' per cent, but the time money market is the one which is of most con- 1 cern just now. It ia stated that some, i houses are working on a basis of ?." per cent time money and 75 per cent cad money, as acainst a normal of al out 60 p-T cent time and 40 per cent call. Should there be any ha.sty calling of loans some shares of the Standard Oil of New Jersey Jer-sey are inaugurated on the floor of that institution. At any rate, interests which dominate the affairs of these companies have decided to yield to the demands for greater publicity. There has been some talk of late that Washington would enact legislation to this end. Hut whether this has hastened action on this score is a question. Treasury Financing Grows. In a letter to the bunking Institutions the secretary of the treasury presents a hopeful and favorable view of the financial finan-cial condition of the government, which he believes will be sustained and will probably improve. Estimating the total debt to the end of the fiscal year at twenty-six and a half billions, he thinks that the six and a half billions of anticipated antici-pated revenue will meet all the requirements require-ments of the treasury; and, while more of the short-term rtlficatcs will be issued, no more long--term government bonds need be looked for. The total Income In-come will be slightly over 56.500.000,000, of which $4, 9 10,000.000 is to come from internal revenue and JLI60.000.000 from customs receipts. A little over $l,O00,-000.000 $l,O00,-000.000 will come from the Victory loan installments and the rest from miscellaneous miscel-laneous sources. He will offer the treasury certificates in the gross amount of $3,500,000,000. Out of the proceeds are to be paid off $11,097,640,500 of maturing- certificates, leaving a net increase of about JjOU.OOO.-00. JjOU.OOO.-00. This amount will probably be refunded re-funded into short-term notes. It Is a modest sum, compared with previous government issues during- the war. and can very easily be disposed of among1 the banks and investing houses, so that the secretary was quite right In his earlier prognostications that the public would not be called upon for subscriptions to another government Issue. With the prospect of only about J ""'". 0u0. 000 being- added to the f untied debt, bankers look for an improvement In the market for current Is-suea, especially the Victory notes. Future Looks Bright. Busintss uncertainty has now passed, and a period of prosperity is definitely under way. This is .-vid-need by an improvement im-provement in h;isic industrial conditions of a character to justify confidence in i t h permanency. Although the actual R.iin in pig iron output for June over that for May was not birge. this is the first month which has shown a gain over its predecessor prede-cessor s;ri''e the beginning of the Im.g t.n.-i ii'ijiu.tLiiMi ukiiii ie iMMf; lor. mil , until the situation regarding the establishing estab-lishing of credits for Kuropean countries Is cleared up this seems hardiv likely. But once this Is done and the movement cets under wnv even hiirh-r money rati- than those whih prevail now are ex peered. The action nf the directors of the Standard oil company of New J.-rsev, in offering tii- ir n. w stock for public subscription, sub-scription, in ma kin c public t r.eir earnings earn-ings statements and in having the;r sUn k listed on the New York Sto k evl am:--, is hailed with creat satisfaction, especially especial-ly by the men who have been r iocfly associated asso-ciated with the Itockefeil-rs in the' old oil company. New Policy Adopted. Credit for the new pollv is given to A. :. Bedford and W. C. Teagle, respectively respec-tively chairman and president of the ron-pany, ron-pany, and marks the evolution from t hs ; oldtime pubiic-be-damn-d pr-.-rev to the j mofiern conception of white. ;ji:t "publi in matters so closely AfT-cting t':;e pun'ic welfare. Brfore li.Htlng the n'n.'k rn exchange ( mav be found rlesir.ib to break up the units of larir value by which the j. ha res are now rerresTiterl. The proceeds of the r. Jl e.io j-hio pref.-rr)d sto--k will urd tl part to . carry out a r-at fin.in. :.-l program of extension her- and abroad It is under-I under-I ftood to be the intention of a run-.i.. r of the other companies that former, v mide the old Standard ful rnmrwr.v V.f N--.v Jeri-v. which was ordered d soh ed by I the 'nited S'ates surren-.e r;rl in l'!l, J to take similnr action, but It ii nn'iy i j that nothing will be c)cir bv any of th.e corirat:ons toward making ;inplb .v.lf.ri to the stock ec' ancc n-. --.or 1 1 i' s to la." fr.eir f'qc'ks l!?t-l un'll d.-ohncn In tl, period or ueeiine in rsepiemner. The sre.-l industry li general reflects an optimistic tone. Stei 1 null operation is at present over i per cent of capacity. Il.xpansion in the oil industry is reflected in the active demand for pip-s. In the i sheet trade June was the best month sine" October. I'.'IS. orders and specifications specifi-cations fhowlng an Iru-reasc from CO , to per cent over May. i I ernand f"r automobile sheets contln- ues especially heavy. l,ack of orders In tl.e steel plate market Is caused principally princi-pally by The fact that there has been v-ry little ra. lroad buying and hy the decrease ; of purchases by the shipyards. In structural struc-tural steel Inquiry h:is I.en active, and j a g.M.d d'-al of work is in Mght. Never-I Never-I tliob ss. the building program has not yet J reached s uch pro -a irt ams as to demand , capacity production of structural Meel. J Although nil lroad purcha.-lng has turn dcla i-d, p's!i'iiicirn'iit can nut continue indefinitely, and nnivlt v in thoNt lir.f s fd Ifidu.-try primarily encased in supply, ing ra :1 w;t y renu ire men t s rr.uM nf nc. rs-f.'.v rs-f.'.v eventually he resumed. The bulld-i:.g bulld-i:.g expari.sion which was well started during May showed greatly increased activity ac-tivity during June. Busli.ess in retail lines during June showed increased acMvi'y throughout the cou nt ry. the rh tef l-:r..irni b-u uk where it has be-n niatntalne.l for the last few months tn teViie.s nd cio'htntc. fur, leither g'ods. J-en-dry and other lines of !uurle.s. The June retort of active and idle ',d machinery shows a rapid le-ciine le-ciine in all lines if Idle m;i''l;intTy re-rtcd re-rtcd ard a corre -u) nd ! i.g Inc-eafe in tii- number of machines in operation, t'otton manufacturers have orders booked far ahead, and the demand for silk goods rxecrc-s (h; manufacturers' ability tJ vupply it. |