Casper Daily Tribune Newspaper, July 6, 1924, Page 15

aad BABSON PAFK, Mass., July 5.— The coal,industry, important in it- self and because of its affect on oth- er industries, is getting back onto a normal basis, according to Roger W. Babson. ‘The statistician discusses both bituminous and anthracite fields in a@ report issued today. ‘The coal industry has been upset ‘go long,” says Mr. Babson, ‘that it is distinctly encouraging to find that it is preparing to get back onto a more normal basis. The feast and famine program promises to give way to something approximating three square meals a day for the operator, the miner,—and finally, the consumer. “The latest upset started last win- ter with the threat of a strike for this summer. To prepare for such an «mergency the operators pushed to build up a reserve supply and the 1922 production of bituminous totalling 422,000,000 tons was topped with a volume of 545,000,000 tons in 1928. January of this year fol- lowed suit with 60,000,000 tons, and February totaled 45,000,000 then it Ddecame apparent that business was slowing up; the threatened strike was called off anda three-year agree- ment with the miners was signed. Demand declined and the operators found themselves with a t endous stock on their hands, in fact, April first showed our reserve supplies at 60,000,000 tons, ‘the largest in recent years. Prices dropped to $2.10 at the mine and operations were cur- tailed during April, May and June production ran about 60 per eent of the average earlier in the year. “Stocks are still relatively heavy ‘but prices are down to $2.01 at the ‘mine and demand !s overtaking the supply. Under these circumstances it is probable that some of the high cost properties will have to close but everyone will be better off with fewer producers working a greater ‘part of the time. Prices may not go much below present quotations and certain keen buyers look toward slightly higher Yevels. ‘However there is littlp in the present situa- tion to justify any radical change in either direction. Production meantime should follow its” normal seasoned tendency with a possible slight increase as fall business de- .. Prudent. buyérs | mands materialize. are covering their needs in the pres- ent market. “Once the industry gets back into its stride it should hold jt until some development threatens another ‘coal shortage, then I suppose we shall all have to run the gauntlet again, taking our lickings by turn. Such a shortage ordinarily develops from a combination of three factors. If business gets to booming and the demand for coal is unusually.heavy, Commodity (Copyright, 1924 The Casper Tribune) Lamber NASHUA, N, H.—The Boston and Maine Railroad is enlarging its creo- soting plant here and adding boring machines which will do away with much hand labor in the manufac- ture of ties, * SEATTLE—New orders taken in the last week by Oregon and Wash- ington lumber mills ran about 2 per cent above production. Shipments totaled 84,000,000 feet and production 82,000,000. Sugar ATLANTA, Ga.—Soft drink ven- ders and manufacturers will resume capacity operations after the holiday. Tce CLEVELAND — The weather in June was the coldest experienced in any June since 1907 and retarded ice sales, according to the City Ice and Fuel company. However, as the com- pany also handles coal and beverages and ices refrigerator cars, profits ere maintained. Auto Accessories © BOSTON—The Gray and Davis company, of Cambridge, has secured the contract for supplying the new Rickenbacker 8-cylindér car with starting and lighting systems. Tobacco LANCASTER, Pa,—The demand for leaf tobacco is only moderate and the active demand for cheap grades for export'so marked this spring has almost disappeared. Prices are weak. er and growers who held their crops from spring ‘are finding difficulty in DETROIT.—Benkers here report buying by industrial interests, but the general investment situa- tion would seem to indicate belief in m spesdy revival of business activity. Banks are purchasing high grade securities freely, Indus- trial employment fell off less last week than for thrée months, the do- crease amounting to only 462. PITTSBURGH.—Money conditions are easy here a local banks are able to take care of all require ments, Those belonging to the Federal Reserve system have not called upon the fourth district re- berve. dank for funds, There js a ~ “COAL INDUSTRY IS Stocks :: Grain :: Bonds NEWS AND QUOTATIONS BY LEASED } New York Stocks || DOUBLE-HOLIDAY IS STOCK TREND STILL _ NEAR NORMAL AGAIN Roger W. Babson Sees Even Prodan But | Advises Early Purchase for Protection In Reviewing Status. Can Car American (By Wilgon, Cranmer & Company.) Aljlled Chemical & Dye —-. 14% |. International ~.-.. Lecomotive 114% & Foundry --. American Smelting & Refg. -. 65 American Sugar --.......... 44% American Tel. and Tel. --.. 122% American Tobacco ~----- 46B prices climb and the buyers rush to| American Woolen an-= 72 protect their need. Remult—a tem-|American Zinc, Lead and 8m 7B CHICAGO, July 5.—The grain and porary shortage. There is nothing ponte Copper ~ Seb livestock markets here were still on in the present situation (the Babson-| Atchison —--------.--.. oe, the ot chart shows general busines sactiv.| Atlantic Coast Line ——--— 122 |® Roliday ane Clee a ity at 13 per cent below normal) to| Baldwin Locomotive ~-.... 114% | Week featured rofit-takt: promise any shortage from thia|@Baltimore and Ohio -—-..-. 58%4| to realize on the recent udvance in source for the remainder of this| Bethlehem Steel -.-----..-. 46 corn, Although rising prices were year, at least. Threatened labor | California Petroleum ------. 22% | halted no decline resulted, latest difficulties have a similar effect on|Canadian Pacific .-.---..... 148% | quotations as compared with a week the market, but the three year ago showing gains of % to 2 cents agreement now in force precludes|Cerro de Pasco -..-.-....... 47 |@ bushel'whtle wheat prices varied the probability of shut. aan on this|Chandler Motors ----...---.- 47% | from a decline of % cent to a gain score. The third factor ts trans- and Ohio —___.. 83 | of 1 cent. portation. When coal cannat be| Chicago and Northwestern _. 57% | Top prices in the corn me moved from the mines it might as| Chicago, Mil, & St. Paul pfd. 23% | Were reached simultaneously with a well not exist as far as the market | Chicago, R. I. and Pac. - 29% | Tush of buying thet presi ys we is concerned. Plenty of cars and|Chile Copper --..---—-.---. 28% | Official estimates ranking tl recent: no congestion promise rapid trans-|Coca Cola ------------------ 73% | tion of the 1924 crops as only portation of coal during the remaind-|olorado Fuel and Iron -..-. 47% | Per cent of normal, the lowest con: i er of the year. Congoleum ~-—-... -.---- 44% | ton ever known for this time o: “The anthracite industry has not suffered so great a slump as the bituminous because no strike was threatened and stocks were not built up to such a great extent. Produc- tion in 1923 of 95,000,000 tons has been followed by production around 7,000,000 tons a month this year. Low prices for the year are ordi- nartly reached in April when a dif- ferential {s put into effect to speed early deliveries. This usual monthly increase ig now scheduled and will probably continue. Ldttle change in wholesale prices may be expected. “Retail coal dealers are facing a serious problem. The public is not buying this summer in the usual volume. Many of the retail dealers, lacking more storage space or suf- ficient capital, are being forced to refuse their shipments as they come from the mines. The operators in Cosden Oil Crucible St Erie Houston Ol International Int. Tel, and BUSINESS BRIEFS Consolidated Gas ~~... Corn Products, new -. Du Pont de Nemours Famous Players General Asphalt General Etectric -. --: General Motors Great Northern ptd. Gulf States Stee] ~--.-.. Tilinois Central ---..---.~--. Int. Mer. Marine pfd. Invincible Oil Kelly. Springtfiek Kennecott Copper - Louisvile and Nashville year. It was at this juncture, how- ever, that profitaking sales broaden- €4 out, and that despite continued unseasonable coolness a succession Lasky ---... aann--- 61% a--= 70%] + P te ———---- 78 KIRBYVILLE, Tex., July 5—A Ns continuous steel tube 210 miles long without a coupling or a s¢rew-thread connection is being laid this sum- Tel “ e mer between the Texas-Loulsiaha - natural. gas fields near Shreveport, - 4 La., and Beaumont, Tex. 9 ‘When completed,.the longest 16- this case curtail production and are| Mack Truck ~ 88% | inch diameter pipe line in the world only mining @s much coal as the| Mariang Ol — 81% | will cross two rivers, innumerable dealers can take. If this continues | Maxwell Motors A _ 51 | creeks and run underground through we will find everyone clamoring for | middie States Oll — 1% |four counties to carry the natural coal September first. It will be phy-| Missouri Kan. and Tex. 14%] gas to Beaumont. Oxy-acetylene sically impossible for the dealer to| Missouri Pacific pfd. -..... 47 welding will seal every joint, replan- get and deliver in a single month the coal he should have been de- livering all summer, Under these |New. queen, rex and Mex. - 99 circumstances a local shortage may [jy Y., N. H., and Hartfo: easily develop and we will all be|Norroik and Western _.... Northern Pacific Pacific Oil --------.-_.—. Pan American Petroleum B-- rushing around trying to get coal at any price. “There is little chance of prices going any lower under the existing conditions and the wise man will get his coal in now when he can get deliveries, thus avoiding possible shortage . prices andthe bo! ot trying to get it late this fall: .~ “The consuming public may also be interested,” concluded Mr. Bab- ton, “in recent findings . of . the Canadian Geological survey which reports on new fields in Alberta which promise to supply anthracite bituminous, and lignite coal for all of Canada for many years. This spells smaller exports from our own supply and precludes the probability of more shortage, as severe as the last two." Trade News disposing of them. Fillérs are quoted at 10 to 12 cents a pound and wrap- pers at 24 to 28 cents, Pennsylyania Reading Air Sinclair Con. Sloss-Sheffield Standard Ol! Texas Co. United Drug U. 8, Cast Iron Pipe U. 8. Ind. Alcohol - United States United States Utah Copper Westinghouse Onions DALLAS—Late rains have helped the north Texas onion crop, which is maturing rapidly and which soon will be ready for market. Woolworth Anglo — Buckeye Continental Cumberland Rubber MALDEN, Mass. — The Boston Rubber Shoe company, a subsi@iary of the U. 8. Rubber company, will keep its plants here closed for five weeks. This will affect'1700 workers, Minols ~... Intiana 3! Sific SEATTLE —Raw silk ana aitk|N*t. Tran. - goods shipped thr this port to the| No.) pire Atlantic coast from the Orient in| Nor Tip June totaled 18,700 bales, valued at | OU0 2 Prairie Oil ~-. $12,500,000. Prairie Pipe Hay DETROIT—The hay crop in the 8. upper peninsula of Michigan is suf- fering from lack of rain and in some sections has been reduced 60 per cent. Farmers are planting emer- gency crops. Cotton HOUSTON=-Texas cotton men now are figuring on a five million bale crop for Texas, in view of the in- crease in acreage of 8 per cent over last year and continued improve- ment in condition. . Farm Products PHILADELPHIA—Strict quaran- ting now is in effect against move- ment of farm products from areas in National Lead —-....--..142%B Producers and Refiners ~-... Pure Ol! -2--~-------_... Republic Tron andsteet! —.- Reynolds Tobacco B -____--- Seaboard Sears Roebuck --..-—--...--- Southern Pacific --.--.. Southern Railway Southern Railway pfd. Standaré Ofl of Cal. Studebaker Corporation Texas and Pacifico Tobacco Products Transcontinental O! Union Pacitio Willys Overland Galena ~_-----. ST 0% S|Of C #|Of Coun ws ==. 44% 26% — 20% REE RT 17) 48% 70% ARB aires AE By J. 0. ROYLB 95% | Special Correspondent of Casper ean aa nnn 18 ‘Tribune *. Lavin se eaeatt kg right, 1924 The Casper Tribune) = 92% | TE YORK, July 6-—Buriness ae 4%] started out on January 1, 1924 In - 4 lthe United States ike an old time ~ 58 |eix horse stage coach pulling out of BELG J - 84%] 9 hoom mining camp in the morning. - 36 | tt was always the custom of the old o Rant. ~---=--+-- 39% | arivers to, start their horses on the ~---=--~ 32% | keen jump and bring: them in at - 60 |their destination the same way. When they reached the edge of town at the start, they slowed down. That is what business has done. After three months at a gallop, business commenced to strike the tough grades and today it has settled down to a steady jog. It has not stopped and the speed is still fully up to normal. Many experts including financiers of international reputation predict that the pace will increase from this time on and that the bust- ness vehicle will swing up at the close of 1924 at as great a pace as at the start. In spite of the fact that this fs a Rubber Steel --.. Electric ... 15 15%| presidential year and that the cam- 61 62 | pafgn usually can be counted on to 39 42 | upset business somewhat, the wea- 125 127 | ther has been the most potent fector 53 55 | in the business, industrial and trade situation in the first half of 1924. It can hardly be said that there was any spring in some sections. Crops in nearly all geographical divisions are two weeks or more late and some have ben damaged by cold and storms. Demand for seasonal godds h held off. Consumers did not jing! their money on the counter. buyers refrained from placing com- mitments for future delivery. Job- bers did likewise. Manufacturers fol- lowed a similar system with regard to raw materials. Producers of raw materias moaned, cut down, produc- tion {n some instances and sold what they coud (no mean amount, by the way) to foreign manufacturers. The latter thereupon rushed cheaply pro- duced goods into American markets, Buyers’ Trend Misjudged Another important factor in the situation as it exists today has been misjudgement by many business men of: the psychological trend of the buyers of the nation. Nowhere was this more apparent than in the eat 284 288 New Jersey. Pennsylvania and Del-| Gress Creek, heavy -—~-W-.. .90/ automobile industry, which has such aware Infested with the Japanese | Greybull 1,95 | an influence on other lines. The in- beetle to uninfested districts. ‘Torchlight 1.95] dustry started out at a tremendous good deal of time money out, but pace, under schedules calling for pro- duction of around 6,000,000 cars for the year. The theory was that sales had been cramped ir previous springs because dealers had difficulty in making deliveries, This year they had plenty of cars but few custom- ers. Byron -. 1.95 call 1 are scarce, bankers de Dealers discovered that buyers Eg ae bd Notohes ~~... +851 were hot for cars when they could Pilot Butte 1.10/ not get them, but when there was no ST. PAUL.—Twin Cities banks | Lander ----—-— -70) aitticulty in providing them, the are considering an early reduction of interest rates on time deposits and interest rates, The present rates are 8% and 4 per cent, which bankers declare are too high in the present easy state of the money market, CLEVELAND,—Taking advan: tage of the Jet-up in business, steel companies in this territory are mak- Ing extensive improvements andjcompany, the edditions to plants, thus furnishing pany and the . coke ovens, work are the employment to many workers. One of the most extensive programs is that of the Central Steel company of Massillon, which will spend $10,- 000,000 on furnaces and bye-product will spend $1,000,000 in improve- ments, Among those planning such ‘Wire company, the McKinney Bteel Prospects backed off. Dealers com- menced to demand that factories ro- Meve them of some of the burden of unsold stocks. Factories cut down and today the volume of automobile Production is nearly 25 per cent off the February peak. It is estimated by some parts manufacturers that there are a mil: lion new automobiles now in manu- facturers and dealers stocks. Dealers Fuller com- and makers, however, declare that Cleveland companies American Bteel and TAKEN AT CHICAGO Grin and: Livstock Exchanges Closed Over Saturday; Corn Advance Holds in Spite Of Profit-Taking. Mammoth Gas Line Being Laid from Louisiana Field of sunshine days allowed cultivation to be resumed in the corn fields. Im: Mediate scarcity of corn, neverthe- less, remained unabated, and this fact resulted in the price of July de- livery being strongly upheld as com- pared with September and December. Threshing returns in the south- ‘west exerted a bearish influence on Wheat prices and so too did excellent crop reports from the domestic spring wheat belt., On other hand, persistent unfavorable heat in Canada was something of ah offset. New England reperts that Cana- dian oats, duty paid, wete undersell- ing oats from Chicago had a de- pressing effect on the cats market here. Provisions were steadied by dis- Parity bétween hog values and corn. Some investment buying of lard was noted in spite of heavy stocks on hand, ing the old method of screw couplings, thus reducing the upkeep of the line to the vanishing point, and conserving a great quantity of gas from the leakage which has always been unavoidable with threaded joints. Working north and south from Kirbyville, the construction gangs cleared a right of way, a tremend- ous job in itself as the country is heavily wooded. Before the 210 mile trench could be dug, the trees had to be felled and the stumps removed. Mid-Year Business Review as Found By Leading Market Reporter relation of supply to demand is being balanced. Steel Production Steel manufacture has dropped off almost to the same extegt as automo- bile production. It now is around 60 per cent of capacity in most sections. The automobile trend had its effect on steel, the drop in other lines of manufacture also made {tself felt and backwaréness of the fruit season was a factor in checking demand for cans and tin plate. Building slack- ened in the smaller cities and the country districts although {t was well maintained in the larger cities. This affected structural steel and lum- ber. With the drop in manufacture, soft coal production fell to a low ebb. There was tremendous produc- tion In the bituminous mines in the early months of the year and in 1928, Wages were high and stocks of con- Sumers were " @ result most mines today are operating about two days a week and hundreds have been closed entirely. This does not apply to the anthra- cite fields however. Thi the de- mand for domestic sizes of coal has kept the mines at practically cap- acity production even during the us- ually slack early summer period, Perhaps the most trying situation in the country is that now facing the New England textile manufacturers. There unemployment js at a higher point than in other sections. De- mand for goods has been low. Cotton prices have been high, As a result curtailment has taken place in scores of factories and some cities are pre- paring to take immediate measures to prevent distress amon, work- ers released. Wool prices also are high although not so high as a year 150. Textiles During Well Some cotton and woolen manufac- turers, however, are reporting a satisfactory and profitable business in New Pngland as well as in the south. The same applies to silk manufacturers who were in a posi- tion to take Sidvantage of the low prices to which raw silks have fallen in late months. This semingly Is a result of having accurately gauged Public demand. The shoe industry {s dull. In one center alone, 16,000,000 fewer pairs of shoes were turned out in the first half of this year than in the first two quarters of 1923, Hides and leather have been affected by this condition although the statistical position of these commodities has improved. Sugar has dropped to extremely low prices, owing to the heavy Cu- ban crop and the delay in consumer buying from refiners made possible by the late spring. The buying move- ment in late weeks however has shown an improved trend and with the increased demand brought about by the call for ice cream and soft drinks, there is every prospect that both beet farmers and beet sugar manufacturers will have a good year. Copper has been in a depressed condition for months. Neverthéless there {s @ profit ponsible for low cost producers at present prices for the metal and there seems no prob- ability of any reduction in demand. Zino and lead have been subject to some price fluctuations but the sta- tinti¢al position of each is fairly strong. Paper is on the downward trend. Bessemer Big Indian ----.----- Boston Wyoming ---. Buck Creek Burke a7 “30 Blackstone Salt Creek .28 wnone 18 20 400s 1.90 2.09 Con@olidated Royalty. 1,18 1.20 Cow Gulch’ -—..--- 03.05 Domino = ~~--.-~----= .10 2 Elkhorn -----..-—-— 04.06 E. T. Williame ----. 35 .36 Fargo 05 07 Frantz 6. 7.00 Gates 20! 10 Jupiter 00% 01 Kinney Coastal ------ .08 .09 Lance, Creek Royalty. .00% .01 Marine ---------—--- 3.00 3,15 Mike Henry --... 00% OL Mountain & Gulf -—. 1.33 1.37 New York Oil --..--. 9,00 10.00 Picardy -------------= .04 06 Preston .-..-—. 01% 02% 04 05 02% 03% Western Exploration - 3.10 3.20 Western Oil Fields -.. .15% 16% 0 1.00 05 06 NEW YORK CURB CLOSING Bid Ask Mountain Producera — 18.00 18,26 Glenrock Oil — 250 82 Salt Creek Prd: 2425 24.60 Salt Creek Cons. --. 8.00 8.25 Marine Oil & Gas ~~..212.00 213.00 Marine Oil ~----------.101.00 102,00 Ohio Oil -----------~ 61.75 62.00 Prairie Oil ~-------- 211.50 212,50 Prarie Pipe ------ 103.00 104,00 Mutual — 9.75 10.00 8. O, Indiana -. 56.25 56.50 so far as news print is concerned, owing to heavy production. How- ever manufacturers take the attitude that lower prices will stimulate con- sumption enabling them to operate at capacity with a consequent reduc- tion in costs counterbalancing the re- duction in prices. Ltimber is dull with the Pacific Coast mills reducing production sharply. The tobacco situation is excellent. Tire manufacturers have made Profits so far through the low cost of rubber and .factory economies. How far the present struggle in which various leaders in the trade fre engaged will cut into those pro- fits, cannot yet be determined. Outlook Not Gloomy Inspite of all these facts, the out- look for the remainder of the year is anything but gloomy. Leaders in the manufacturing, pressed. drops. far brighter at present than it was last year. The railroads have been doing well, for, in spite of the fact that freight traffic at present is about 10 per cent lower than for this time last year, operating economies have kept net incomes up. Railroad equipment houses have had heavy orders, the roads are in excellent physical shape, and the crop move- ment has just begun. There has been no sign of a severe building decline and wages in general have held up remarkably, There are few prospects of wage cuts in the major industries. As to retall trade, there are just as many shoes, clothes, hats and other articles of apparel, being bought and worn today as ever. The irreducible minimum of American trade as fixed by one ex- pert is $1,000,000,000 a day and this minimum {s still far from reached, Different Kind of Buying Buying {s not of the same kind as it was a number of rs ago. Con- Sumers and merchants are purchas- ing in small quantities and frequent- ly and there is evéry indication that they mean to continue to do so. Manufacturers and wholesalers have not yet gotten used to this but the trend ‘s so strong and so apparent that they are sure to adjust them- selves to it in time. As one manufacturer safd today. “The delayed buying {s like the de- layed steal in baseball. It works sometimes but equally often the de- layed buyer finds himselt dusting off his pants and walking to the bench with a mean look at the um- pire.” Market Gossip: ‘New Wildcat Drilling. On June 30 a well was spudded in on Bull Creek Dome in Crook county, northeastern Wyoming. The well is being drilled by D. C. Kelso and C. W. Weaver, independent oll operators of Denver. The royalty interest is held by Clyde Barly of Salt Lake City, and the Ute Petro- leum company holds a 26 per cent working interest. Bull Creek Dome was found by T. K, Harnsberger and Max W. Ball in 1918, and was mapped in de- tall by the geologic staff of the Roxana Petroleum corporation. The structure is about four miles long and a mile wide, and has a closure of about 80 feet. The Benton shale is exposed at the surface, and the Muddy, Dakota, Lakota, Morrison, and Sundance sands are estimated to He within 1,800 feet. The Roxana drilled two wells on the Colony structure, southeast of Bull Creek, and the Frantz eorpora- tion drilled a well on the Sevenmile structure north of Bull Creek, but none of these wells penetrated all the sands underlying Bull Creek Dome. vaitied Ad The nearest railroad point ie Belle Fourche, 8. D., about 30 miles to the soythen: For results &@ Tribune Clas- vances, merchandising and commercial fields are not de- It is pointed out that while prices are lower than they have been, no radical and panicy price The agricultural situation seems UPWARD LAST WEEK Northwestern Carriers and Public Utilities Feature Trading Saturday at Close of Active Week on N. Y. Exchange. NEW YORK, July 5.—Stock prices continued upward in today's short session of the exchange, the strength of northwestern raflroad issues and Public utility shares featuring the day's specialities also held firm but trad- ing in these stocks was quiet and sales for amounted to only 250,000 shares. The greatest gain was made by Four" which led the rails with a four-point jump and established a activities. Industrials and the day of all issues “Big new top price for the year. While the general trend of market trading continued upward during the week, more pronounced resistance was encountered by traders for the ad ce as profit-takers were num- erous. ‘Traders for the most part maintained an optimistic attitude to- ward future industrial conditions al- though trade and business reviews showed little change. Chain store and public utility groups featured In some of the most sensational notably American Wat! works, American Express, Kresge ad- Department stores and ‘Woolworth. Copper shares likewise exhibited « burst of strength after having lag- ged behind the general list fof sey- eral months. For the first time in nearly two months United States Steel crossed the par mark but reaction carried tt below this figure before the end of the week. New peaks were touched also by Baldwin and American Can. “Nickel Plate,” Texas & Pacific and Western Pacific sold at high prices for the year. Prospects of larger dividends based on increases in current earnings ac- counted for the strength of mer- chandising issues, while equipment issues were stronger on the expecta- tion that the railroads would apend large sums for equipment and main- ance as a result Of lower money rates. Reports that several midcontinent Producers had taken steps to limit crude production bolstered the oll shares but prices reacted to news of the indictment of some principals in the oil leases investigation. Forecasts of Early Year Scrapped, Reviewer Says By STUART P. WEST. (Copyright, 1924, Casper Tribune.) The thing which stands out most strikingly in the markets of the mid-year, fs the failure of most of the prophecies which were made at the beginning of 1924. These ranged from moderate to quite extreme optimism. It is hard to recall a single instance where a business leader or a banker, speaking of the future, foresaw the really severe downward turn in industry which set in toward the end of March. In the same way: few looked for such a drop in Wall Street prices as occurred between the close of Jan- uary and the early part of May. It was not only a case of over- production in certain lines. In others, particularly in the textile in- dustries, causes for depression were found in the inability of the manu- facturers to raise their own prices enough to effect the rise in costs of labor and raw materials. The cot- ton goods trade in New England has perhaps never been through a worse experience. Even now, only 20 per cent of its productive capa- city Is employed and there {fs no prospect of any pick-up, certainly until the autumn. Commodity Decline Checked. ‘The general average of commodity prices went down continuously from the middle of May to the mid- dle of June. In a number of cases quotations were brought back to a pre-war basis. Inasmuch as prouc- tion costs are far above what they were in 1913, this means that in certain, industries operations are being conducted at a loss. A situa- tion like this can never continue for long. because {t {s economically impossible, It was not surprising, therefore, to note in the latter halt of June, indications that the price decline had run its course. th The low commercial price level Everyman’s GOLD BONDS. “Listen to the conversation at the assistant sales: manager's’ desk.” The suggestion came from the sales manager of a banking house on whom I was calling. “Oh, It's quite ethical,” the sales manager smiled y look of surprise—"nothing con- at m:; fidential. ._ Besides you may get & helpful slant on the way many per- wons noglect expert advice when they make investments. Across the aisle the stan sales manager and a middle-aged woman were considering the house's offer: ing of some twenty-five investment securities. Apparently she was a woman of means and they were so- lecting investments for ten or twelve thousand dollars, “Here's a good industrial.” The sales manager named an excellent bond of a company with a long his- tory of good earnings and splendid management. “I can recommend—” “Oh, I don’t like industrials.” With impatient indefiniteness the woman swept that high grade #ecur- ity aside becnure she had heard some one say at a dinner that he didn’t care for rial The assistant manager pa- tlently and briefly described the worth of the bond, one I should be delighted to own. Then he named four or five more good securities, skimming the veritable cream from the list and getting in return vague. Intangible objections. Finatly he suggested an excellent bond, one of the best forelgn government external loans, payable in New York in Amer- jean gold. “Oh, I don't lke foreign bond the woman sald. “But this a GOLD bond,” exclatm- ed the assistant sales manager. “T'll take three of them,” replied the woman. The word “gold” had sold her. The sales manager smiled resignedly. It Was a cOmmon occufrehce, this try- ing to give people the benefit of years of investment study and then having the customer disregard it has to be emphasized because {t-con- stitutes one of the essential points of difference between the present situation and that of four years ago. The second point of difference is that production in most lines has been severely cut down so as to meet a consumptive demand based upon only the most necessary and immediate requirements. Along with this money rates are lower than they have been in ven years and the credit supply Is the most abun- dant in our financial history, All these are features which represent the antithesis of conditions making for prolonged depression. They are a picture, on the contrary, of de- flation at a rather extri tage. ‘Very low money rates are never a prime case of business improve- ment. They can be of material assistance only where the rolation of production to consumption is right. The experience of the last two years has shown forcibly .also that cheap money does not of itself stimulate speculation. The principal effect of the cutting of the federal rediscount rates to what may be regarded as the lowest since the for- mation of the Federal Reserve sys- tem, and the extraordinary piling up of surplus funds, has been felt in the increase in investment values, The rise in the better class of in- vestment bonds and investment stocks has been the feature of the last two months. It has seldom happened in the year of a presidential election that much fresh initiative either in busi- ness or finance has occurred during the summer. Everybody {s waiting to sée how the campaign develops, especially what are the chances for or against a radical change in policles at Washington. The trade movement and the markets are apt to wait until the autumn before at- tempting to discount the election results. Investment | minor consideration. That foreign bonds be payable in American gold dollars of the present weight and fineness !s a very pertinent require- ment in these days of deflated Huro- pean currencies and uncertain po- ltlcal conditions, But it ts not the first requisite, The ability of the borrower, to pay, whether a gov- ernment, a corporation or an Indi- vidual, ia the first consideration. If the. borrower is unable to pay It makes no difference whether he hag promised to pay in gold, rubles, laurel leaves or cod fish. Putting the word “gold” in a doubtful se- curity doesn't make it stronger, doesn't increase the ability to pay. T am not objecting to the precau- tionary gold payment requirement, but to the fact that many persons exaggerate its importance. Now and then I see a very ordinary bond with a very narrow safety margin be- hind it labeled as a ‘gold’: bond. And the word “gold” seems to at- tract people while at the same time it detracts their attention from the more important consideration as to safety. If you think that the United States may some day be in a con- dition similar to that of Germany or Russia, insist on. “gold” bonds, to prevent payment in deflated cur- rency, but don’t get the notion that beca a bond recites that it is Payable in gold that those few words mend any defects it might have to safety and general desirability, (Mr. Hughes’ fortieth article will ap- pear in the Tribune next Monday). ARE CN a Marine Oil Operations. Operations of the Marine Oil com- pany in Salt Creek are shown as follows: Section 5.39-78—Wolverine CR-3: This well has been completed and Put on production. Section 16-39-78—Mé@sher 4: Rig has been completed and drillers are now rigging up to start drilling. Section 17-39-78—-Marine 7: Drill- ing at depth of 780 feet. : Section 18-40-78—Wyokans 4: Has ana be convinced by a word or reached depth of 1.986 feet; running «.\ Dhrase- that often may be a very | 10-inch casing,