The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-07-22
ATE features OF
The STOCK MARKET
cross Currents of Specula-
ton Developed.
FEAR AND HOPE FELT
Fear of Reaction and Hope
Of a Bull Market AL
ternate.

The stock market of the past week
i. has revealed the cross currents OF spec
81latiye sentiment, running on the one
Nhand through the channels OF the
Northwestern and Pacific railroad
2;tooks. where efforts centered for an
advance In prices and a stimulation Of
slpecnIative interest, and on the other
hand in the industrial group, where ev-
denoes of trade reaction caused some
Hlepression and hesitation.
n The easing tendency of the money
markets has been reviving influence on
,ecurities, but this was under the res
Sratnt of the dubious Interior prospect
Ind the short time remaining before
he strain of the interior demand for
currency to move the crops may be ex-
.bected to draw on New York banking
Resources.
The stirring of speculative interest IN
Il limited group of stocks has not prov
Ebd convincing Of any revival OF sub
@Etantial investment demand, Which
must be relied upon for any conclusive
&,elief of the troubles caused by the
ecanty available supplies Of capital.
4 The indications Of trade reaction are
In accordance with the expectation gems
brally felt ever since the disturbance in
The securities market first gave warm
Ing of the forces at work to that end.
Nevertheless, the extent to which these
Forces may act and the measure of the
counter balancing forces which may OPP
brate as a check and to effect recovery,
hre SO far undisclosed as to leave opin-
ons unsettled and capital still doubtful
about embarking In investment.
"A recent article by M. Paul Leroy
Beauiieu, the distinguished French eco
&nomist, analysing the problems of the
hecline in investment securities and the
prospects for their recovery, is given
respectful attention amongst students Of
Conditions. His conclusion that per-
Cd Of imitation has ledup to the present
situation commands general agreement
The course Of events bears out the as
sumption that bank liabilities cannot
expand indefinitely, bank reserves can
hot fall off continually, nor can bust
4 ness perpetually support high money
rates.
There must come, first, a shrinkage
speculative securities, next a fall in
prices of raw materials of manufact-
lres notably metals Real capital, he
holds, presents an insufficient supply
\ 'or nations whose spirit Of enterprise
so far stimulated as to lose sight OF
bill limitations, as he maintains has
been the case both in the United States
+ md Germany. He calculates that the
United States has undertaken to spend
a single year for all industrial and
4 financial purposes, $2,000,0O0,000 to ST.
z 800, 900 900, while the annually accruing
capital of the United States probably
loes not reach one-third of that sum
= Meantime, foreign supplies Of capita
I. we're absorbed in unusually large home
Enterprises and were depleted also by
s he destruction Of capital in war loans
) Ind in the San Francisco earthquake
From which it has followed that users
bf capital must pay more for it in q
higher interest rate, and they will have
10 postpone or extend for several years
many enterprises for which prepare
ion had already been made. Indus
rial and financial markets must, in {
Measure reduce their scale Of prices
N Ind, in some proportion, the price Of
aw material must come down. Events
ave too far proved the operation of al
hese forces to leave room for dispute
- The Journal Of Commerce has made {
: compilation of new securities created II
he United States during the first hal
IF 1907 showing a total of $1,27S, 720,500
With issues since January l Of $799, 442,
90. OF this amount $50S, 651 900 has beer
.! n short notes at high interest rates
,efecting the urgency OF the require
nents.
The summing up of M. Leroy-Beau
ell is that "the existing situation il
he financial markets alters to capital
its and investors generally the oppor
E unity Of which they have been de
rived for nearly twenty years, Of Sc
l1ring a suitable return on their in
ested capital"
Nevertheless investment demand il
he New York market still halts. On
8 L the principal restraining factor
urine the past week was the Declining
endency in prices of the metal. TIL
nnner# market remained in an unstabl
ondition after the reduction mad
reviously by the principal producers
nd sales made below their quotations
eports from the iron and steel mar
cts were of a falling off in orders 70
nished products and condition G
omplete dullness in the iron marke
18th fears of possible deadlock be
xeen BUYERS and sellers such as char
aterized the copper market, Othe