Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-18
MONEY CONDITIONS
NOW NEARING
NORMAL
STRONG UNDERGONE OF
CONFIDENCE PREVAILS
Appearance Of the Small In
weston in the Market Buying
Gilt Edge Securities Taken as
Hopeful Sign

lBy Morning Journal Special feased Wire
New York, Nov. 17.-Adairs in the
financial centers moved toward adj
justment last week and in the stock
market itself there was an undertone
of confidence on this count even
! while the surface of the market was
more or less disturbed by after-efects
OF the recent violent perturbation. A
is Invariably the case of such an eX-
perience, there remains IA certain
amount Of wreckage to be cleared
away. The mere fact h a this work
has gone on is in itself evidence OF
the confidence hat conditions are
more proDitous for making II success
full. Great banking interests and cap
~itaIists with a near interest In indiVid
ual properties take offerings OF them
in the market at times Of panic for
the purpose of opposing obstacles 10
the disastrous break in prices. Such
purchases come back on the market
for sale at the first opportunity. Ac-
counts with commission houses also
are carried through times of peril with
the understanding that they are to be
reduced as soon as can be done with
out entire sacrifice. During the late
upheaVal also II Is well known that ac-
counts were taken over from mbar
raised houses bodily in order to save
them from shipwreck and It is be-
lieved that the past week has seen the
clearing up Of some Of this by resale
of securities in the market.
With the subsistence or the price
level back to an attractive basis under
these operations there a developed
again the Investment demand in small
lots which is 50 notable a feature OF
the present situation In the securities
market. Transfer agents Of all legi-
innate corporations are worked over
time in recording the holdings of new
stockholders In small lots. This kind
OF buying forms In the aggregate a
more important factor Of absorption
and distribution than the much larger
transactions Of the ordinary dealings
on margin which are taken with the
mere purpos Of resale at a pfoht,
which are made with borrowed money
and which are vulnerable therefore.
To any shock to credit and liable TO be
forced on a weak market at the most
u%npropitous of all times. With the de-
cline In the rates for money on call
there has been a stirring Of active
stocks in this class Of operations, but
n has been frowned upon by bankers
and money lenders and by the lead
ing minds bent on the remedial meas
uItN IRON MHitA AEt lNIAh AAlt At
storation OF normal conditions at an
early date. The small investment
buying. which is thus encouraged, Is
In Itself an important remedial meas
ure by bringing out sums OF money
which had been Withdrawn from the
channels Of banking operations and
which are thus restored to do the work
of rehabilitation. II Is the occasion OF
universal observation in the securities
- 81 NFAH LN..WH IHHmHHn fhn AHaHWH -
tons of forced liquidation above re-
ferred 10 the supply of stocks and
bonds offering i'm the market has be-
come scarce and orders to buy are
filled only by advancing bids.
on the side Of the general situation
the took market has had to face the
consequences of the late up
heaval at the financial centers, which
conform to the expectations indicated
In the %convulsive readjustment Of
prices Of securities effected earlier. IL
was early foreseen that the dislOca-
ton Of the machinery OF the financial
and commercial exchanges would have
The effect Of throwing obstacles in the
way OF maintaining business activity
az it's high level. Reduction Of output.
cutting down Of working forces, cam
Of contracts, a fall in prices
of commodities and retrenchment in
EH HH "L NNE ny AA-NN ~ - AH
orders for future delivery which form
the burden OF incoming reports. oC-
casion no surprise 10 speculative senti-
which b. registered earliest and
most accurately IN the securities mar
ket. These developments had found
their reflection In the earlier events
In that medium. The present market
Is inclined 10 reflect rather the opin-
OF the future. The action OF tho
may be fairly interpreted as
offering a good proportion OF hopeful
ness for a short duration Of the crisis
md for an early restoration of normal
and a renewed start toward
revival OF the prosperous activities
~ which the country was previously
Engaged. Confidence Is felt IN the solid
oasis OF that prosperity and Il is be-
ieved that he experience through
which the country Is passing contains
% Itself the forces of correction OF the
.Onditions which were placing a limit
M that prosperity. A lower price level
n a conspicuous example Of the line
Ipon which this needed readiustment
IS nov working. The lower prices of
ecuritics also II having the effect Of
.ttraCting capital not only from do
nestle but from foreign sources. thus
"a force ~ rcp-lenishment. Z
he ack Of which had come 20 he the
fading factor In bringing the source
n progress 10 a standstln. f
sANk IT ATIAIENT REVEALS