The Birmingham age-herald., 1903-08-02
SENTIMENT IS AS
 A WHOLE BETTER
Stock Prices Recover Slightly
 During the Past Week
BUYING YET RESTRAINED
Doubt Over the General situation ln- huenoes Conservative Persons-Re- vlval of Talk Concerning R. R.
 Mergers and Combines.

New York, Aug. 1.-Priees of stocks have recovered somewhat in this weeks market and sentiment has improved on the whole. The market was unsteady at times on the recovery and scattered liquidation was still in evidence here and there in the special lines. There was sufficient doubts remaining also over the general situation and outlook in the country to restrain the buying of stocks on any considerable advance.
 But the forced selling of stocks hy- pothecated in loans has been much less in evidence and this fact has allowed prices to rise somewhat on the demand from shorts to cover and on large in- vestment demand
 There has been apprehension of the un- usual consequences to follow such a pe- riod of drastic liquidation such as the renewed liquidation on any advance Of accounts allowed to carry over the pc riod of acute weakness in the hope of more favorable opportunity to market them.
 There is some dread also of the reae- tionary long fall in securities in the gen.
 
 The fall in values has resulted in an enormous shrinkage in the available ba- sis for credits and the possibility Is can vassed of a contraction of credits in com mercial lines as a later sequence. Nlee President Hepburn of the Chase National bank in an interview which has eom- manded widespread attention and com ment in Wall street, uttered distinct warning of the danger of over exten- sion of credits at this time in commercial lines as well as in promotion projects. The note of conservatism is still domi- nant in the financial world and the uni formly favorable reports received or gen eral conditions from all quarters have not been sufficient to change this teel- ing.
 Railroad Talk Renewed.
 The announcement of the purchase of the control of the Evansville and Ieffe Haute for the Rock Island system re- vived the talk of combinations and ab- sorptions of railroad systems. There has been a theory amongst certain class of stock market operators that the pres ent fall in stock prices is the result of a concerted campaign by powerful financial party with the purpose of buy ing in various railroad properties, even including New York Central and Penn sylvania on advantageous terms. Per sons with this theory have given ready credence to all sorts or ruIhors ol pass ing of control.
 The argument seems plausible that the community of interest," policy might be perfected to much better advantage al the present level of prices for securities than at the extravagant valuations at which the great mergers were carried through. But this contention leaves out pf account the great facility with which the new securities, issued against the collateral of the stock acquired for the merger were disposed or 10 an eaBefiS buying public.
 There is little encouragement for the underwriting syndcates of new securities in the present conditions of the stock and money markets. The money market has grown appreciably easier during the week. and rates for six months loans have been shaded below per cent. The market at those rates has been largely nominal. how ever, and lenders have shown little anxie- ty to place loans at the prevailing rates while the demand for funds has grown languid. Loans made on stocks at their present prices call for smaller allowance for shrinkage and are more secure than loans on the inflated basis of last year.
 Money Requirement Problem.
 The case of stocks which are discredited
 
 is the source of weakness in other stocks sold to protect them. The working out of the autumn money requirement is the problem of first importance in the situa- ton, as it has been for many months. It has been assumed lately that the prob- able delay in action by the Columbian government on the Panama canal treaty would throw any demand upon the ex- change market for payment over into next year.
 News in progress during the considera- tion of the treaty has been watched. there fore, with interest as 1t is believed the treasury department will feel itself some what hampered in operating for the relief of the money market in case the Panama canal requirement shall appear imminent News of the crops Is followed from day to day and doubts over the good condi- ton of corn and spring wheat had some depressing effect upon grain carriers. The cotton corner is a detriment to stocks. The formation of the steel billet pool helped the iron and steel stocks, but the lack of stability in finished lines in that trade was an offset. Railroad operating officials reported a high level of traffic, especially in merchandise and confident predictions for It's continuance.