Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-07-22
Both in the United States
and Foreign Countries.
Speculative Sentiment Has Slim
uIating Effect on Trade.
Efforts For Advancement In Prices
Centered In Railroad Stock.

New York, July 21-The stock mar
ket of the past week has revealed the
cross current of speculative sentiment,
running on the one hand, through the
channels Of the Northwestern and Pa
cific Railroad stocks, where efforts
centered for an advance in prices and
stimulated speculative interest and
on the other hand in the industrial
group where evidences of trade reac-
ticn caused some depression and hesi-
tation. The easing tendency of the
money markets has been reviving in
fiuence on securities, but this was I'M
der the restraint Of the dubious Interior
prospects and the short time remain
ing before the strain of the interior
demand for currency to move the crops
may he expected to draw on New York
banking resources. The stirring Of
speculative interest in a limited group
OF stocks has not proved convincing of
any revival of substantial investment
demand, which must be relief upon for
any conclusive relief of the troubles
caused by the scanty available sup
plies of capital. The indications of
TRACE reaction are in accordance with
the expectation generally felt ever
since the disturbance in the securities
market first gave warning of the forces
at work to that end.
A recent article by M. Paul Leroy
beauieu. the distinguished French
economist, analyzing the problems of
the decline in investment securities and
the prospects for their recovery, is
f,,l
students of conditions. His conclusion
that a period of imitation has led up to
the present situation commands gen.
'eral agreement. The course of events
hearS out the assumption that bank
liabilities cannot expand indefinitely,
bank reserves cannot fall off continue
any, nor can business perpetually sup
port high money rates."
lherc must come, first, a shrinkage
IN speculative securities, next a fall
III prices OF raw materials of manu-
Iactufers, notably metals. Real caDital.
ne holds, presents an insufficient SIM
ply Tor nations whose spirit Of enter
prise is SO far stimulated as to lose
sight Of all limitations. as he main.
talns has been the case both i'm the
oni'eu states and Germany. He calcu-
rates that the United States has I'M
dertaken to spend in a single year for
ali industrial and financial purposes
sz'ooo'ooo'o0o to $2,500,OOO while the an
nuiliy accommodating capital of the
united states probably does not reach
one-third of that sum. Meantime for-
elSn supplies of capital were absorbed
IN unusually large home cnternrisos
ana We're depleted also by the destruc-
tion OF capital in war loans and in tho
San Francisco earthquake.
Inc summing up of NJ LEROY Roam
iieu is That the existing situation
III the financial markets offers to in
NrS.ors generally the opportunity of
winch they have been deprived fon
nearly ~ years, of securing q suit.h,o
return on their invested canito1,
nevertheless the demand in tho NJ
YORK market still halts. Ono of ~
principal restraining factors ,, .lie
1870. p'a' week was the declining ten
III prices OF the metals The con-
W market remained in an unstable
"'.''oii dlter the reduction made
previously by the principal Producers
'ti'" sdies made below their ruot,
'''iiS news or the crops last woe, Voc
satisfactory and added to tho &c
oehce that the country will boyo -,
a'alitble surplus to supply tba ,,,o.o..4
meeus OF Europe at highly profitabIe
i"tes. money rates relaxed hare 80
"olo'u. with the winter wheat har-
already under way and the New
; i"rN exchange rate at Chicago declin.
a' IN, ne period of the coming demand
On f1astern bank reserves to move tha
crops becomes of early consequence VIC