Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-11
STOCK MARKET
SIT UATION
IMPROVES
DEPOSIT OF GOVERNMENT
FUNDS HAS GOOD EFFECT
Banking interests Fully Alive.
10 Necessity Of Conservation
Declares Henry Clews in
Weekly Review,
especial Correspondence Morning JsurRai.l

Especial correspon5enos Morning journal
New YORK. sept. i0-0utside in
tersst in the stock market has shown
further improvement this week. Ex-
psctafisns Of q favorable result at
next Tuesdays sale u f40,O00+00g
4l-2 per cent corporate stock and
bonds Of the city Of New York have
been largely responsible for this con
dillon. while q mor cheerful feeling
N regard 20 the m0ney situation
time money at any rate-Reems %
have modified receni fears " excessive
sfrlnReney. II IL quite true that Sec
rotary C~orteiyOu's action in depositiug
public funds IN the mi ot the
eountry before conditions became ac-
lively acute has had a ~reassuring e.
fert. but " l. stu more than prob
able that the money situation viii
continue an Important adverse iniu-
enre III the market for a considerable
time. extending ~ least over the turn
~ the year. We are now on tho
threshold OF the annual movement OF
funds TO the agricultural sections =
finance the crops. q fact emphasized
by the nrmef tendency Of call o ~.
These call funds have been available
for shipment for some little time. the
hanks refusing to commit themselves
for fixed periods, well knowing that tho
demand must come az soon as the
crops we're ready. Gail money rates
have beer almost nominal for some
time under these circumstances. but
are nov showing n hrmer tendency,
aud the withdrawals for shipment TO
the Interior may be. under ordinary
circumstances. depended upon 20
force interest rates up 70 az least the
same basis "a time money. Thu nat
urnl effect Of such an advance viii be
20 cause liquidation. especially ~ Sc
curities that banks and other lenders
do NOT favor az collateral. while cali
money Il IN the vicinity of 3 per cent,
lenders are not 30 discriminating In
their scrutiny Of collateral as when
rates reach 8 and above. When the
latter range becomes general there Is
usually a wedding out by lenders OF
the poorer classes Of securities, when
causes IN turn liquidation OF these
securities at n time they have a very
limited market. The situation. there
fore. u one requiring caution IN buy
ing and offers distinct announcement
20 ronnne purchases 20 the higher
trades Of securities whose efficiency
a. collateral IL ' questioned So
eufities a. the lower grades " pur-
chased al an al the present time
snnuid be purchased outright, as with
more active money there T. apt TO be
pressure 90 cell on a market that VIII
not take them freely.
Banking Interests are fully alive To
the money outlook and are enforcing
conservatism IN channels whore such
action II neceaanF ~. This means a
continued check IN business 81 "a high
~ speculative character, n 60 "a
measurable degree " q protection
against an eventual widespread bush
ness embarrassment. ON the other
hand. the favorable agricultural out
look ~ a decided influence against ex-
IRENE depression. and the market for
tbe immediate future On apt 90 be one
81 wide and active n%uctuatiOn within
comparative safe limits. Barring pos
sible damage By early frosts 10 the
corn crop. otherwise the record for
the balance ~ the harvest Of 1897 is
now abou assured As already noted
in these advices. the prospects cer-
tainly do not favor bumper crops In
ans direction. hut In all cases they
will be- well above the average and
viii be- worth IN dollars and cents to
the farmer falls what actual bumper
crops have IN the past proven to be
worth.
News developments OF the week
have taken altogether. been rather
favorable. Active purchases OF wheat
for export have been a prominent fea-
ture. which has naturally operated
against sterling exchange. removing
the probability OF further gold exports
Tor sutue little time. Crop conditions
remain favorable. although the harvest
stii not 81 course. reach the extreme
figures of 1909 There. however. has
been q compromising benefit in the
much higher prices the farmers are
receiving for the smaller product this
year than they received FOR their hum-
pcr product Of last year. Wheat pricea
fur Instance. are about ga cents per-
bushel higher than a. this date last
year. while corn b selling about rs
cents per bushel highor-hgures which
hen applied 20 products ~aggregatimg
hundred ~ millions 81 bushels mean
a tremendous Increase. not alone IN
the wealth of the agricultural see
tons but iu the additional credit that
such wealth provides % which in
turn must necessarily he reflected in
the Increased purchasing power 81
Injuries ana the more staple products
~ Industry. The Increase IA the Chi
rag0 Burlington and quincy dividend
from q 90 an 8 per ccnt basis and
the additional 8 per rrut distribution Z
han "a stmpiaunE effect an Thur
dsy ON Great Northern preferred and
the Northern Pacific. which pointiN I
control lae road % through them ON
The general market ON the other
hand The decision to dissolve the
fuiuu PaCln, convertible bond sYn-
dictate without having disposed 0f the
tsahNn "a ulHrNslffnu ON fNH
slight 81 any Improvement I'D thr
part ~ Keen bun experts f1 look f4r
bond situation lu The near future THE
decline IN fht Official priee Hf copper
90 o. l-e cents WAS OF slight imnnr-
nce 10 diI NOT attract new buying
~ the metal uu ans larEe scale. Tor
lf merely reflected on ari.laI .recnn-
milton % a price that had been ac-
funily current Tor some vesks. and On
increased imduCemeuf existed 60 pur-
chase ~ supple at on efleial than
~ an unofficial price There are exc
ceilenf Indications that the Industries
ia which copper figures prominently
ere sta doing . good, steady busincse
The period ~ extreme activity haze
however evidently passed whiCh =
merely a repetition of conditions exc
istnE in other Important industrial
departments
There is however. little chang En-
: broad sense. in financial tondIflaf.
rhe stock market has anderson "a
rsadflsfmeuf represented b. some
ming like Sa.ooe. eno.ooe. and % "
oniy natural that q corresponding re-
adjustment PERHAPS not - Spec
ular. shall folioW in mercantile ard
Industrial Circica Tire Fundamental
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