Show POLITICS FACTOR IN MARKET NOW Stocks Declining Slowly Foreign Exchanges Strong trong By Dr CHARLES RUS F. F SPEARE Special 5 Jal Correspondent of Tho Stand ard Examiner Copyright Copyright 1927 1027 by Consolidate Press Association NEW NEW YORK Oct 15 The The declines In n the stock market D this week have hue been of more than the rallies They have ha been l attended b by larger transactions and the character charade of the selling has appeared to be better bet bet- better better ter than that of the buying From va various va- va rious angles It Is evident that speculative speculative Speculative shares which have been leading the long Jong rise have been passing pl from strong Into weaker hands Many l fJ persons rs who h have nave been unwilling unwilling unwilling ling for mortis mo I to recognize the un un- unsatisfactory unsatisfactory satisfactory industrial and loan situa situation tion as factors bearing on prices of ol stocks are beginning to admit that they have rune a a. direct relation to price Consequently their enthusiasm has bas ebbed somewhat The be middle of October has arrived without bringing In the volume of new orders that has been expected In Ina va various va- va various rious lines Jines of trade or diminishing the volume of credit that has been ex extended ex- ex extended tended brokers rs for the purpose of ac accommodating ac- ac accommodating a specula s the market n r i perched on the highest pinnacle of prices in many years These delays delas mean that there will 1111 be a a. smaller percentage of profits proms applicable to common stocks for the last quarter of 1927 STEEL PROFITS DECLINE The situation In the iron and steel Industry is is typical of many others Postponement of orders Is carried earned over ever from week to week neck The volume of unfilled tonnage of the United States Steel corporation on the first of Oc Oc- October Oct October tober t r was the smallest since the early days of this corporations corporation's career Prices are being shaded waded In order to attract business The profits of all ot or orthe the steel manufacturers and especial especial- especially ly those of some of the small inde Inde- independents Independents independents are discouraging The Gen Gen- General General General eral Electric company compan has reported bookings lor for the quarter ended Sep September I Umber 30 of compared with in the same period of 1926 and a decrease in the nine months of this year of Railroad earnings continue to show smaller maIler figures than a year ago and while have come came up well from the summer mid-summer minimum they are of smaller proportions than at this time last year Automobile output has contracted Here again events in the Industry that had been forecast for I September have e not appeared In Oc Oc- October October October tober and may be delayed until Novem wr her or December Unemployment Is Increasing la in active Industrial centers FARMERS' FARMERS POSITION BETTER On the other side of the picture Is the splendid recovery reco that has taken place in the past month In the con con- condition condition of corn and In spring wheat heat and the ability bm of the h cotton crop In i I September e to hold to t about the e August level of probable yield Com Corn gained I nearly bushels last month and is now 27 expected t to show a return bushels greater than In July Jut This has bas had a pronounced ef ef- ef effect feet on the thc price of ot corn com which the week broke below a bushel for the December Decem r option compared with three months ago The position of the farmer there there- therefore fore Is decidedly better than last J year earv In spite of the drop In In corn it Is higher than It was In the fall of 1926 and the selling prices of cattle and end cotton are arc very ery much more mere to the advantage ad of the producer Wheat will measure bushels more than was harvested haf last year ear Fortu Fortu- FortunatelY Fortunately the Increase in this crop has taken place In those sections of the country that needed a larger money return In order to balance the ef ef- ef effect lect of years ears of misfortune The In In- In fluence of this Is to be b seen In the liquidation of bank loans some of whIch ich h have been earned carried a long time and smaller borrowings at the banks to cover er this seasons season's requirements OIL AND METALS inT There has been cn a little mile improvement in the conditions surrounding some of the metals and a gradual though not a very influential gain In the statistical cal position of crude oil Most Moot of the producers who are not refiners as IS well face serious conditions A further de de- de demand demand mand on them to conserve e their cash resources will ill probably cause the re- re ret reduction t or r cutting off of of Ol dividends dividends' now being paid on ou common stocks From 01 various arlous sources It Is u known i that the volume of Instalment buying i Is g gradually iy decreasing This Is responsible re re- re HI for a part of the curtail curtail- curtailment ment In the thC articles output of Industries man man- manufacturing manufacturing of a semi luxury type tn e. e This may mean that the market mar mar- market ket for goods gods of this class has become saturated or that anticipating a a. period pe pe- pe period of reduced employment the buying buy- buy buyIng buyIng Ing public is more cautious and Is tak tak- takIng taking ing what It actually needs and can pay for rather than committing itself to long term engagements Certainly the tendency toward to mouth buy buy- buyIng buyIng Ing has haa never been more e than it Is today congress will convene In about six weeks I for lor or Its last sessIon before the presidential l campaign 1 It l Is only natural al that there ire should 5 be a S great 1 deal dal of ol political discussion art attempt at nt an as early appraisal 1 of candIdates and their policies The Incident of the French tariff has awakened a discussion of the en en- en entire entire tire question of ot protective tariffs and this subject with prohibition will be bethe bethe bethe the one over which the campaign is likely to be fought Linked with It t Is the he improvement in the economic and political conditions Great Britain France ance Germany Italy Poland and end Belgium all except Great Britain large arge borrowers in the United States for or the purpose of developing loping their ln- ln internal in- in internal ernal resources and strengthening h industrial Industria and agricultural con con- conditions conditions conditions so that they may have ha more moreo to toe o sell to present customers of the United States and less need to buy those hose products of ot which we have a a. surplus Our loans to Germany In the last lastour our years approximated Several of 01 this weeks week's loans Joans and those hose that are arc pending have had bad for tor their heir purpose the stabilization of cur- cur and a readjustment of internal in- in Internal ernal and external debts This Is allin all alln In n the interest of improving international InternatIonal lonal credit and Indirectly of broad- broad broadening broadening ening markets markels for American investments invest invest- investments Investments ments and temporarily for American goods FOREIGN EXCHANGES STRONG I More attention is being given to the strength In sterling and In some of I Ithe the he continental exchanges Since August 1 the rate on London has advanced ad- ad advanced I nearly 1 J c In the pound al- al although although though hough this is the season when nor nor- normally normally normally mally it declines It Is now not far distant from Irom the gold exporting parity At t the same time German GeIman and Dutch exchanges have ha been rising until the theone theone theone one is above parity and the other ap ape approximating approximating It Last week the bank bank and raised a d Its its discount ter rate to from 6 to 7 per cent and on Thursday the Bank of ot Netherlands advanced Its discount from rom 31 3 to 4 per cent The last shipment of gold to Eng- Eng England England land and based on exchange rates occurred oc occurred oc- oc occurred on the eve eie of ot the great w war r. r We cannot expect indefinitely to keep possession of more than one halt of the he gold supply of the world It Is the opinion of ot Students of finance that 1928 will witness the first decided out- out outward outward ward vard movement of gold from this country to Europe The September report of the department of commerce just published shows that the turn has jus las already come for the last month gold exports were nearly or about twice the amount of Imports The effect that a generous exportation exportation exportation tion of gold cold might have on money mone rates will ill depend somewhat on the volume of business developing during the presidential year With Industry operating on a 0 reduced scale and the th movement of crops to market already well along there Is 13 no reason to ex expect ex- ex expect expect other than a continuation continua lion of about the present average rates ra s for forcall forcall forcall call and time loans It is on this that the new high average for tor bonds this week has been predicted and encouragement encouragement encouragement given to underwriters to bring out another flood of new ties |