| Show RAILS FEATURE STOCK EXCHANGE Y Volume of Business Good Believe Higher Money to Stay BY Dr STUART STU P CST SEST Special Correspondent nt of or TIle The Copyright 1926 By Th The Consoli Consolidated dated Press Association NEW V YORK Aug During H-During 14 the past last week while there have been wide fluctuations and a n good deal dal of excitement In a number ot of the higher priced industrials the Increasing Interest In the rails rail has hns been the main feature The buying movement In the railway section ha has In part re- re reflected reflected re reflected the Investment absorption due to the exhaustion of opportunities opportunities opportunities In securities of ot the tho first rank and In part It ha represented seated the view that lh th the coming I month will witt see ECO another luge uge traffic traffic fic IC movement even exceeding that or of a year ago That this will lead I Ito to higher dl dividends Is a reasonable belief belier IL H RAILROADS o n GOon GOOD For five he years ears following the re- re resumption re resumption of ot management mana extraordinary sums Bums were wre diverted to maintenance expenditures expenditure These appropriations kept down nl net earnings as compared with gross but beginning a year ear and a halt half ago the maintenance budgets were cut to normal and net revenues began to mount The present situation Is that of ot a trans trans- transportation transportation system the best off phy phy- physIcally physically In Its history with no further necessity for any unusual outlay upon property and unI with big surpluses accumulated Un- Un Under Under Un Under der these those circumstances even en the th m most moil t e can fairly consider paying out more to their share owners The upward movement in the rails durin during the tha autumn of ot was based upon merger prospects at It the tho best were an lion uncertain tab tain Influence so far tar as market values alues were ere concerned The fhe pros pros- t nt ent advance ance founded on legitimate legitimate mate idea Ideas of higher dividends dl with a virtual certainty of record earnings I Is much mM more solid Vho like Atchison Nor Nor- Norfolk Norfolk folk tolk and Western Vestern and New York Central as assume ume the lead and ard break Into new high ground It means a let lot for tor the entire business situa situa- situation situation tion MOTORS IOTO S rULL RALLY The Idea that the tho 50 per pcr cent tock dividend declared by Gen Gen- General General eral Motors has been discounted In advance ance caused a decline In General Motors stock In t the he trad trad- tradIng trad- trad tradIng trading ing Immediately following the tho di- di directors directors di directors rectors action but the pr price Ice sub sub- sub subsequently rallied rattled The winds Ind of speculation blew alternately hot and cold upon the stocks stocks- Nat Nat- Naturally Nat Naturally at- at here was a good deal of profit taking In General Motors ns as a result of the stock dividend action but the the stock appeared to tobe tobe tobo be so BO well supported that tInt the speculative e tendency In this hll luI Iuar- Iuar quarter quarter ter was wax considerably cooled The Thc strength of General Motors to- to together together to together gether with the upswing In the rails discomfited the tho element kin working for fr lower prices HIGHER MONEY OXE HATES H The rile markets hay have havn been adjust adjust- adjusting ing tag themselves es to the opinion that the recent reent rise In money rates Is going to hold This his not at- at af affected calculation be- be because because be because cause the supply of funds avail avail- available available abl able for tor Wall street purpose purposes Is But It has hS shown Itself in Investment quarters The Indi Indications are that the hl higher her grade bonds reached pLak two months ago aso and aid lire are not likely to start upon any fresh advance MI Although h the Increase In New NewYork NewYork York federal reserve reser rediscount was In the nature of a local re- re realignment re realignment alignment to rates which had Ion long been prevailing In other parts arts of the country it did emphasize a judgment In banking circles that the money market would not get back bacle to Its low of ot the sprin but would the present h hiither hor level find If any thinA work high high- higher er Ir In n consequence United States nt bonds have been com com- comIng com com- coming ing log down while In tho the higher corporate securities there thore has been stagnation BUSINESS t The business position In Is I favor favor- favorable favor favorable a vor- vor able Seldom ha hat has the ral een-ral vol- vol vol volume 01 ume been maintained du during the summer period he way It Is now On the lIe other tend hand It has hall ha to be recognized that this weeks week's turn turn- turnover turnover over oyer Is being done dono at comparative comparative- comparatively h ly hr low price le According to Duns Dun's ne le Review there were 35 de- de de declines dInes clines during the last wee week Ie as against 27 advances This represented Dented an nn Improvement over oyer the tho week before and over the corre corre- corresponding week a year ago Still It suggested profit margins none too large COTTON COTTO X DOWN nox OX ON REPORT The cotton celton market was hard hit by the August report of the department of ot agriculture The figures pointed to te a considerablY larger larKer production than had lad been looked for tor It If during the rest ot of the season a us M propitious condi condl conditions ions exist as those of the two previous years the 1926 1026 19 2 6 crop will exceed the he big yield of a year ago Cotton prices at their low ot of the Iho week came very close to the extreme bottom figure ure of ot the year At these figures tit there ere can be little or no DO profit In cotton colton raising over the greater grealer part of ot the territory The old question comes romes up whether under such circumstances I ISI Mn A fl U a favor tavor- able feature They spell spen large iree a ag agricultural profits for the tho railroads but where the farmer Is 13 making no money he cannot spend and this Is likely to show later on In ina Ina IL a diminished volume of business In the cotton otton states slates FRANC FlUNG HAS S The recovery of a week ago In French francs did not pot continue The International hankies banking com corn community Is still sun waltin wallin Irto toe see how new financial pr program t-om t wit vIll work worle out whether It will witt realize the tho expectation of Its 1 1 by balancing the French budget and producing a sufficient revenue to Inspire confidence In the pres pros present present ent valuation of o the paper cur cur- currency cur currency rency The main reason why the tIle franc did not continue to Improve e was wa the unwillingness of o of the French parliament to take up the Amer American ican lean and English debt queStion before the summer recess This means no foreign loans will witt help hell out iso tso franc for the present and It was upon such loans that the hope of stabilization was founded |
