The Montgomery advertiser., 1907-03-30
THE STOCK MARKET
ANIMATION AND STRENGTH WAS A
 SURPRISE
rt was Expected that Operations would be Little More than Nominal as Keep ing the Exchange Open Was
 Larxaiy Concession.

New York. March 2s.---The animation and strength of the stock market today was 2 surprise in view of the experiment Of Friday, contrary to the usual custom. It was expected that operations would be lit- tle more than nominal. as the keeping ..t or to the bankers to avoid the necessity of making loans on Thursday to carry over until Monday. There was small attend ance on the floor of the board room when the market opened, commission houses re- ported that customers were almost entirely lacking.
 The London stock exchange followed the custom there and remained closed and no business was supplied from that source. All appearances indicated that the majority of members had taken advantage of the op- portunity to get away from the city. When the activity began to show signs of fevsy. nls observers were skeptical ana sprofessed the conviction that room traders operations were giving artificial appearance to the market. Nevertheless substantial days business was recorded, and the price move ment was decided and comprehensive. The rapid advance in prices was explained on the needs of still uncovered snort inter speculation for an advance.
 The days news offered small material for ppocsrnsnt ,n suaso .hs saoknn s,euation ipd,cat ed by the preliminary figures of the weeks currency movement Mostly as a result of the treasury's relief measures. the banks seem to have gained upwards of SIP, 100000 of cash reserves during the week.
 The regular express movement with the Interior has moreover yielded a small gain on balance. indicating the current of the movement in favor of this center. The premii . on New York Exchange at Chicago has r to 90 cents, indicating the course Yors "
 FTom this is inferred a probable return flow of currency from the interior after the turn of the month. The money market was little affected by preparations for the Monday settlements although call loans were frtnn Al uf xrac rana rat loan item of the banks tomorrow will be complicated by the influence of these prep ket liquidation. The expectation was gene ral. however, that tomorrow's bank state ment would be strong, and the stock ex- change wi1i be closed tomorrow. operators acted on the conviction that Mondays mar ket would show the first effect of the bank statement
 ket was the intervention of the national authorities to bring about arbitration of the labor differences which threaten to bring about the strike among the employees of Western railroads.
 The widest movements of the day were h the Hili and Hartman stocks and Cana dian Pacific. Canadian Pacific gave signs of distressed short interest.
 Active bonds were firm, but small blocks ,d,a ef some inactive issues , were marketed at e1.e40.0 900. United States bonds were un- changed on call
 Prices of securities sold on the New York stock exchange early this week at lower figures with a few exceptions than in the panicky session of March 14. This was a belated result of the panic due to the de- ferred reflection here of the effect of our disorders on foreign stock markets Lon- don and Berlin both had periodical stock market settlements this week. London a fortnightly and Berlin q monthly settle ment As the formidable fall in prices of our securities had occurred since the previous settlements the differences had to be made good and the process proved se- were. The settlement was completed, how ever. without disastrous consequence and arrangements were reported to have been concluded also for meeting heavy require- ments of the April money settlements.
 All markets showed relief over the pass ing of this crisis. The threatening condi- tons here on Monday also prompted some organized measures Of support by bankers and capitalists. which opposed the obstacles to the aggressive operations of the bear party. which had been having things pret- ty much it's own way.
 At the same time the measures of re- lief for the money market by the treas ury department became effective and the solicitude felt over the resources to tide over the April settlements here was aIlayed, the substantial additions to New York bank reserves resulted from these measures and laxed. On Monday si75O, ,000 gold was secured in London for import to New York.
 Further reaction in the money market is looked for during April and some return for the flow of currency from the interior is expected at an early date The stock market became quieter, with the develop
 
 what from the severe depression of the persistent selling pressure upon it. The tone continued unsettled and hesitating and opinion over the future of the market was not well enough defined to free the opera ton in themarket from extreme caution. As an example of the prevailing uncertainty was the reception given to the judicial de cfsion in favor of the legality of the issue of new Great Northern preferred stock.
 The stock was rushed up sharply, but the rights to subscribe to the new stock broke badly in the curb market This incident was suggestive of some of the causes back of the present conditions in the security market In the specuation of last year. a number of stocks were pushed up to un- heard of levels on the expectation of rights to subscribe to stock issues, distribu- ton of bonuses to stockholders, increases in dividends etc. The rise in the stocks was based on the prssumptive value of the rights to subscribe to new issues.
 At the same time the subscription rights when they came to be quoted, were valued according to the high prices of the stock with these rights included and in some cases with expected increases in dividend returns to be added. The dividend increas- es when made. increased the demands on