Current Situation

Both the money and security markets have this month experienced a relaxed demand and at this writing both are beginning to give indications of renewed firmness. Rail and oil shares are active and rising, with most other groups still in a waiting mood. Exports of gold continue heavy, about $100,000,000 of the yellow metal having gone abroad since Dec. 1 of last year.

The steel industry appears moderately and wholesomely on the upgrade. Operations are at about 94% of capacity, with rising prices. Similarly, crude oil and gasoline stocks are showing marked reductions; demand is good and an upward movement of both crude and refined prices has appeared in the mid-continent and other fields.

One reassuring sign to manufacturers and traders has been the tendency toward an expansion in our export trade. This, coupled with increasingly good and apparently nonspeculative domestic demand, seemingly indicates business prosperity through the spring at least.

In the railway field, the merger movement continues to excite interest. In addition to progress among the Big Four in the Northeastern section of the country, the Southwestern roads, especially Missouri Pacific, Missouri, Kansas & Texas, Kansas City, Southern and St. Louis & San Francisco, are beginning to entertain serious merger developments. Whatever 1925 proves in trade and industry, little doubt exists that it will be a remarkable year for the railroad business.