The Washington herald., 1907-09-09
ALARM is SUBSIDING
Sentimentin Market ImprOv-
ing at Home and Abroad.
BUSINESS IS EASING OFF
ReadjustmeBt Of COuntry's Indus
tries Now in PrOgress--Week1y
Treasury Deposits and Receipts
from New York Bond Sales Expect
ed 90 Help Money Matters.

New York. Sept S-Many notable
changes affecting the action OF the stock
market took place within the last week
but by far the most important of all
was the improvement in sentiment with
out which any substantial and sustained
rise In the price of securities would have
been impossible
This change in sentiment. amounting
to the restoration Of confidence in greater
degree than had before been witnessed
for many weeks past, was largely the
result of the demonstration in the preced-
ing week that liquidation had been com
pleted. and that tsy as they would
spectators operating for a decline in the
market. although able to force recessions,
could not produce a renewal Of selling
of real stock by actual holders, such had
been the most disturbing element IN the
decline which reached its lowest point
about the middle Of August.
European Alarm Exaggerated.
An essential TO Improvement in sentl-
ment abroad was the restoration Of some
degree Of confidence here, for there is no
doubt whatever that in the European
capitals a good deal Of alarm had been
felt until comparatively recently over the
supposed serious condition Of affairs on
this side.
An altogether exaggerated idea had
been entertained in Europe as TO the ex-
tent Of the money stringency and the dan
ger Of an industrial collapse in the United
States. but the apprehension Of the for
eign bankers was none the less real be-
cause 1t was not well founded. That ap-
prehensi0n has now, however, been al
layed, largely as a result OF the disap-
pearance of the hysteria formerly exhib-
tied in New York; and London. which for
time positively refused TO accept Amer
lean finance bills and was much disturbed
on account OF rUmors that efforts were
being made 10 dispose Of such bills in out
Of the way places like HOngkOng and the
cities OF British India. has recently been
willing not only 10 place money here, but
10 take on the better class OF our stocks
for investment
Instead of the United States being
weak, II is probably no eXaggeratiOn 10
say that the financial condition of this
country to-day is stronger than that Of
any country in Europe except France.
The decline in the exchange market and
the fact that the open discount rates in
London are substantially below the Bank
Of England's rate have testified strongly
10 the Improvement in sentiment abroad
and as to the ability Of this country 70
draw gold from Europe in large quantities
during the coming fail there can no
longer be any doubt
Exchange Making Products Higher.
Cotton. the best maker Of exchange
among the products Of American farms,
is now selling higher than at the CORE
spending period in any past year, with
one exception. and as very little Of the
crop has so far moved out. the high price
viii probably have to be paid for nearly
the years entire product The difference
between the price OF cotton now and the
price a year ago is equivalent to about
SO bale, and although the crop viii be
smaller, IL Is practically certain that its
money value VIII be very much greater
than that Of 1906. In addition, wheat and
corn are also selling at unusually high
prices, and although the latter is not a
very good maker Of exchange, wheat at a
dollar or more a bushel in Chicago and
cotton selling on a basis of Is cents spot
in Liverpool must inevitably result in
large imports Of gold within the next few
months
In all well-informed quarters It Is now
admitted that business IN most of the i'm
portant lines OF the cOuntry's industry is
easing of In no branch, however.
has there been a sudden stoppage Of work
and in no quarter Is any alarm felt over
the outlook
Healthy REIMBURSEMENT In Progress.
What IS taking place is a healthy read
Justment 20 existing conditions In the
money market which make IL impossible
for the railroads and the Industrial corpo-
rations, as well as for private firms and
individuals, to obtain the necessary can
ital 10 provide for expansion and develop
ment at the rate at which these have
gone on In the last few years.
The sale Of New York City bonds will
probably result in a substantial increase
In the amount Of lendable money In the
street, because when the city obtains IT'S
new funds It will be In a position to pay
on the loans made to 1t in the last few
months by local institutions As a large
amount Of the bonds will undoubtedly be /
placed out OF town and possibly abroad I
funds viii be attracted toward this center
and the gain made in this way, combined /
with what is derived from the deposit of /
S5,000,009 weekly with the banks bv the
Treasury, will go q long way toward |
solving the problem OF how 10 take care
OF the years crop movement. The final
payment of 90 per cent on the Union 4
Pacific convertible bonds 10 be made this
week should cause no real disturbance /
Tor just as soon as the money has been
paid over 70 the company It viii again be /