Current Situation

Last week was one of big-figured recapitulations.

P: The New York Stock Exchange reported having listed over $500,000,000 worth of new securities in May. The New York Curb Market listed $718,733,803 new securities (par values).

P: May trading on the New York Stock Exchange was the heaviest in history--46,598,134 shares sold, with the daily (except Saturday) average well over two million shares. Fifty representative stocks touched an all-time high record average price of $166.46. An average of $215.46 for 25 industrial stocks was another record; of $117.50 for 25 rail stocks, the highest since 1905. Stock sales for the year (since Jan. 1) were 223,711,791 shares, or some 43 million shares above last year's all-time record.

P: New bonds worth $707,729,900 were marketed in New York in May--an all-time record (excluding War months when Liberty Loans were sold).

P: Market reports conflicted. There was less new business for steel mills, but the shrinkage was in size rather than number of orders, reflecting the cautious practice of keeping down inventories.

Railroad incomes were seen to have fallen off about 14.5% from 1926. But weekly car loadings passed the million mark for the seventh time this year.

Earnings of 23 oil companies fell off about 6% for the first quarter of the year, due to overproduction and price cuts, results of which will show more clearly in statements for the current quarter.

P: The motor industry was most sanguine. May production (exclusive of Ford) was 18% larger than a year ago, approximately equaling the April output. April is supposed to be the motors' big month. Tardy spring must be reckoned with this year's output figures, but still an increase is apparent. In the first five months of 1926, total output was 1,295,765 vehicles; this year, 1,454,673 vehicles.

P: Reviews by Dun and Bradstreet (statistic services) agreed that a seasonal subsidence of business had set in, but with commodity prices (foods, leather, cotton, metals) staying exceptionally firm.

P: Grain and cotton men quoted frequently the remark of Julius H. Barnes, shrewd trader and no Pollyanna, to last fortnight's National Foreign Trade Council in Detroit: "We may now reasonably hope for a long period of remunerative grain and cotton prices" due to "the necessities of European consumers, whose buying power is distinctly better."