Show INSIDE FOR STOCK FAL FAll No Strain on Credit Earn Earn- Earnings Earnings Earnings ings nt Bull Effort Fails Dy By STUART P WEST Special Corre Correspondent of ot The Standard Examiner CopyrIght 1926 1026 Consolidated Press Association NEW YORK Oct The 9 9 The past week has been one of o rapidly de- de declining de declining clining dining prices in fact tact as abrupt a 0 break as has occurred In a a simi similar similar lar space ot of time in r recent t er years It has has has- involved heavy losses for speculators who were loft left with large lines ot of stocks after atter what t now appears to have been an un- un unsuccessful un unsuccessful successful summer campaign The chief explanation lies in In in- In- In Inside Inside side rather rother than outside condi condi- conditions conditions A big effort was made dur- dur durIng durIng dur during ing July and August to attract the public by bidding up prices to reproduce the excited speculation ot of the autumn of ot 1925 This ef- ef effort ef effort fort failed tailed and ond as a sequel stocks were down at their lows of the th week 10 15 and 20 points from where they were ere selling two iwo o othree othree three month months ago OUTLOOK IN DOUBT Apart from the undoing of ot over over- overdone overdone overdone done operations for the rise the decline has s had hod considerable sl- sl sig significance for tor outside conditions There has been no strain on credit and the fluctuations in money rotes rates have had no effect But Dut Wall Vall street did aid take too tic a a view of ot the Business outlook It put too much stress upon the big production going on through through- throughout throughout out the country as set Bet forth In such accepted data doto as railway car loadings and bank clearings It did not take Into sufficient ac sc ac- ac account account count the low price level at which tills this great greot volume ot of o business was being done EAn EARNINGS I DISAPPOINTING iO Some ot of the Ole ho Industrial company put out tor for the second quarter have hove not made pleasant reading The effects of ot an on ever ever- Increasing ever Increasing competition have been made mado apparent especially in the th case of ot some come of the automobile makers maker Railway Railway- earnings for August were exceptionally good but as s 15 against this railroad stocks stock were pushed up extravagantly on homes which have ho not been of extra dividends ot of divIdend Increases and of ot benefits benefit to follow tollow merger deals The stage was finally reached where a number of ot pay dividend payIng dividend Ing ralls were of offering ottering Cering little more morein In the way of o Investment return than high-class high bonds This was situation which 1 could not last without a larger distribution to railway share holders and so far except in one or two to Isolated in in- In- In Instances instances instances stances this has haa not occurred BREAK A p The big break in cotton prices price I has been Sl 1 to and properlY so as one of ot the Influences bock back backof backof ot of the decline in stocks The see sec secretary sec secretary ot of agriculture trying to put the best face on things pointed to the ample credit resources avail avail- available available available able to carry over a cotton sur- sur surplus surplus sur surplus plus no matter what its size Ills thesis was that cotton was a non non- nonperishable nonperishable perishable non perishable commodity which could be held tor for any length lenth of time un- un until until un until til a favorable market developed What he did not say eay was that fi n such a surplus would be bedone bedone bedone done at prices which over the greater part port ot of tho the cotton terri terri- tern territory tor tory would Involve a loss to the growers There is no use minimizing the tact fact that the cotton trade is in a depressed state The Tho world do- do demand de demand mand mend Jell ell far short of the bale bale American crop o 1925 1025 There was wu a big over carry-over and now on top ot this surplus the government go bureau estimates the 1926 crop at ot bales bales- bales fully tully bales more than some private and more taha teh ten a arage rage prediction Continuance of very low v cotton prices seems assured and the ques ques- question ques- ques question question tion is how this will 1 III affect the economic situation In the south and what bearing It will have hove upon political sentiment Even it If the surplus cotton Is temporarily cared for with the help of ot the local banks and the federal reserve the buying power of or the south Is likely to be much reduced as compared with recent years This in turn will make mike Itself felt In the general distributive trade during the com corn comIng coming ing log months The stock market position has been Improved ed by the liquidation ot of the week eek but it always alwa's has to tobe tobe tobo be remembered that a selling move move- movement movement ment meat nowadays Is apt to carry corry to extremes the same way as IlS the buy buy- buyIng buying ing tog movement which pre precedes edes U H FOREIGN BONDS EXCHANGE J The remarkable success of ot the theS S Hamburg loan loon where the coupon was the lowest yet yet- yet only only only 6 per was cent cent was the most talked of ot episode in the bond market Naturally It called for tor an upward readjustment ot of o other German Germon city Issues and made the market for German securities more popular than ever Italian exchange has continued to advance in response to the tho energetic measures which the Italian government Is taking to stabilize the tile paper currency The lira was up at ot the close of ot the week week a quarter of ot a cent from where It was WIlS selling as recently u as uthe the last week of oC September French and Belgian currencies have been comparatively stationary |