The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-26
Improvement, Largely Sentiment,
Based OH Belief That Political
Agitation Will Be Less.
REDUCE THEIR HOLDINGS
American Market Has to Absorb
Liquidations Of Number OF
European Countries.

j NEW YORK, August 25.---The feeling
| OF apprehension with which the stool,
| market began the week has been re-
placed by calmer Judgment There was
| much less liquidation and few signs
save in isolated instances, of selling
| by those, whose margins were impaired
| Such Improvement as was shown, how
ever. was largely sentimental, based on
the belief that prices have discounted
| all, the more adverse considerations
that may arise. and that henceforth
there Will be less of political agitation
or at least less response on the part
| of investors to what have formerly
been regarded as disturbing policies.
The speeches of Secretary Taft at CO.
lumbus and President Roosevelt on
Tuesday were read with great interest.
but their effect on the market was
slight.
Our markets have had not only to
absorb the liquidation OF American
shareholders, but they have been forced
to accept securities to the value OF
many millions OF dollars from investors
Germany, France and Holland have
greatly reduced their holdings OF
American securities, until now they
are probably at the lowest level in
some years. Further. the high rates
for money abroad have reduced the
borrowing capacity OF this country in
! field from which large amounts OF
capital are annually drawn.
Sharp Dividing Line.
There has been quite sharp divid-
ing line between the rates charged on
loans In which industrial securities
figure as collateral and loans composed
of railroad issues. The rate has been
as much as l to l 1-2 per cent. higher
against the frSt nar1ad
Six months loans on industrlals have
ruled as high as 8 per cent. Next to
this class the weakest spots in the
market situation have been local trac-
ton shares, which have fallen to the
lowest level in years. The declines IN
these stocks have been accompanied by
reports that financial reorganization
and complete reimbursement OF the local
traction system, organized but few
years ago. will soon be inaugurated.
The previous weeks advance in the
Ran{ of England's discount rate proved
effective in keeping gold at home, and
also in bringing funds into the London
market AS result, no reason existed
on Thursday last for another advance
in the rate. Paris again proved her.
self to be the capital with the largest
ket. the effect. OF the previous weeks
higher rate of discount by the British
institution was an advance in demand
sterling to about si.ss-a rise OF al
most a penny in the pound and we'll
within the gold exporting figures. The
engagement of 100000 gold for Ger
many during the past week Will be
classed as special transaction.
Berlin is In the same strained money
condition as New York, but any i'm
mediate change in the rate of the Inn
perial Bank of Germany will depend
almost entirely on the attitude of Lon
don bankers.
Uncover Weak Spots.
A number of weak spots were un-
covered in the Industrial and CONNER
cial situation here during the week.
The failure Of an old-establlshed gro
Gerry nrm resulted from the money
stringency, and merchants and manu-
featuring concerns We're experiencing
greater difficulty in negotiating loans
at the legal rate OF interest. In other
trade quarters, notably iron, steal and
copper and the allied metals, the con-
traction in the demand for raw mate
rails g.yas reported to be from Is to
20 per cent The feature Of the weeks
late operations was the announcement
OF a reduction In the dividend of South
ern Railway preferred, from to
per cent. basis. While such action had
heen generally expected, the short tn
!terest made most of the episode to at
tack the general list. with the result
that practically all the gains of the
week Were lost.
Secretary Cortelyou's offer of Treas
ury relief to the money situation
had but little effect on the stock mar
kat