The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-09-02
HIGHER RATES.
Net Results of the Recent Wall
Street FURRY
Are an Advance in Interest and
Renewed Confidence.
IT'S ALL OVER NOW.
Business Promises to Resume
Normal Conditions.
COrtelyOu's Action Brought a
Turn in the Tide.

New York, Sept. 2.-The teel1nB OIL
| anxiety and apprehension which has
been prevalent in financial circles for
| several weeks past was perceptibly
quieter last week. and this was re-
f1ected in some Improvement in prices
OF securities. This was accomplished
without any very substantial revival Of
demand for stocks, the buying coming
clearly for the most part from the
covering of short contracts left open
as consequence of bear operations
during the prolonged decline in prices.
On the selling side. however, there was
marked subsistence of the kind of
pressure which has kept the market in
disorder during the previous period
The change in sentiment was easily
discernible in the disregard of the many
rumorS of an alarming character which
were circulated in the early part of the
week alleging EN- mbarrassmentS by stock
and bond houses and even by influential
mercantile houses, the bears soon per-
ceived that these devices were in
effectual, inducing further large offer
ings of holdings and they were led per-
force to buy in stocks on a rising scale
to cover their short contracts.
Quite the most influential factor in
bringing about the betterment was the
announcement of the secretary of the
treasury of his intention to make large
weekly deposits of government funds
with the national banks during the
period of the crop moving demand. The
response was prompt not only in the
American money market but in the
great foreign money centers as we'll; in
London especially, the discount rate de-
clined and it became quickly manifest
that defensive measures in that market
against New York's supposed intentions
to draw on foreign money resources
were being abandoned. AS matter
of fact the earnest purpose of present
recuperation among some of the great
foreign banks was based largely on
their solicitude over the prospective re-
quirements of the short supplies of
foodstuffs abroad and the necessity Eu-
rope would be under of making large
remittances to this country to supply
their needs when the outward move
ments of our crop sets in.
The treasury measure for supplying
our currency needs gives promise of a
relaxation of demand on foreign money
resources for this purpose There is
general agreement, however that this
country's position in the international
change is stronger than for several
years past at this period of the year
For one thing, foreign lenders of money
have exercised a sharp distinction
against would-be American borrowers,
so that it is believed outstanding bills
in foreign markets running to maturity
are much smaller than usual. Even the
usual offerings of commercial bills OF
exchange against future shipments OF
commodities have been unusually
small, owing to the doubts felt over the
outcome of the crop.
The past few months also have seen
a very large return of foreign holdings
of American securities to the home mar
ket. This has been a material factor ia
addition to the burden of the home stock
market during the period of stress but
the floating supply of American securi-
ties abroad has been correspondingly
reduced and a smaller supply left avail
able for sale to influence the exchanges.
The reception given to the announce
ment of the intended sale on September
10. of $40 900, 900 of New York city bonds
was another factor IN reVlVlng
confidence in the investment situation.
Not all of the early rumors of forma-
tiOn of a bankers syndicate to bid for
the whole issue were confirmed, but the
opinion among bankers was that the
offering would prove a success and that
a considerable portion of the issue
would be placed with foreign investors.
The fact that the rate of interest on
the new issues had been raised to Az
per cent compared with the previous
Der cent rate lent a clear reference of
a high prevailing rate for capital still
existing and led to some readjus tment
of prices not only of New York city,
but other high grade investments. The
prospect that the issue would be placed
however indicated progress in the fix
inc of the new standard of return on |
and a promise of the break |
ing of the deadlock which has existed |
between capital and its employers. A
forcibIe reminder, on the other hand, of |
the difficulties which still remain in |
adequate capital facilities was |
offered by the decision of the Erie direc- |
tors to offer scrip instead of cash in the |
novnoent of dividends to their preferred |
stockholders in spite of large surplus
earnings over dividend requirements |
shown by the years operations. This |
determination to conserve cash re- |
sources for outlay in required better !
ment was regarded so far sympto- |
matte of a general condition as to cause
some renewed weakness in stocks of |
companies known to be similarly |
situated. Evidence was at mana also OF
~ continued reaction in the iron and |
conner industries, but reports of the |
conditions in general mercantile lines
showed activity sustained beyond ex-
pectation.