Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-08-12
For Those Interested In
the Stock Market.
Liquidation and Price e-edjust-
ment The Features.
Easier Feeling and Early Return to
Normal Is Hoped.

New York, Aug. 1.-THE drastic Ii
quotation and the price REIMBURSEMENT
which were forced upon the securities
market last week came as a surprise
to the general public. as the feeling
has grown that the necessary precau-
ton against unfavOrable features OF
the situation had been completed. The
extent of the speculative commitments
i'm stocks had not been suspected, nor
had 80 acute a pressure in the money
market and for capital requirements
been foreseen. The abortive campaign
for the rise entered upon late in June
was undoubtedly responsible for the
over-extended speculative position
which was disclosed and many market
pools are caught in an embarrassing
position, which necessitated a costly
throwing over of holdings.
The responsibility for the upset lay
largely in the anxiety over the re-
newed pursuit of corpSatiOns Each
days published news gave force to this
sentiment. The 500 900 fine levied on
the Standard Oil Co. a week ago was
supplemented Monday by the hostile
criticism of the corporations method
contained in the report of the commits
SlOner or fGTpoTdtNoIlS l'u ~ w
tended discussion of the application of
the case to other corporal lions.
The attorney general of the United
States was quoted as favoring criminal
prosecution of the heads of offending
corporations with a view to their i'm
prisonment. State authorities in the
South were proceeding against rail-
roads for the revocation Of charters for
non observance of state laws. An ag-
gressive bear party made full use of
the sentimental influences of these
happenings and made fierce raids on
prices and helped to uncover vulnera-
bic positions and force liquidation.
Other circumstances are clearly dis
ccrnible however. to account for the
vunerablity of the over-eXtended
purchases of stocks on insufficient mar
gins. The contracting resources of the
money market was a prime factor.
Surplus reserves of the New York
banks are at q lower level than ut this
period for many years past
Continued business activity, which |
seemed to be yet impaired in general
lines, promises continued pressure on
money resources. while the process of
slowing down, which most observers |
are confident will develop, presents its |
perils in the possibility of stocks left |
on hand in excess of needs. Country |
banks have invested freely in COM |
mercial paper as against their usual |
custom of deposting in the reserve
centers and will depend on the matur |
ity of these obligations during the fall |
months to supply resources to draw |
upon to move the crops While re- |
serves at the reserve centers are thus |
being drawn upon, the same banks |
may be called upon to carry the conf
mcrcial from these sources. The de- |
mands for capital for other purposes, |
meantime, remains unSatisfied.
On the side of the money market at
tentiCn is turning to the probable meas
ureS of relief by the treasury depart
ment. The authority for the secretary
OF the treasury to deposit customs re-
ceipts with the national banks under
the law conduces to freedom OF action.
The sustained level of the government
revenues is accommodating surplus in
the treasury available for return to the
channels of the money market. There
are still outstanding nearly 100000. 900
of the government As of 1907 not yet
presented for redemption. a use of gov
eminent deposits which would affect
tho command of this market over for
cign credits when the outward move
nent of the crops begins will be an
element in the problem for considera-
ton. TheNvOlume itself of these crops
will be another.
The governments report on condition
of tho cottop Crop was Inf1vor1 hlp and
the movement of grain to market is
slow yet. Notwithstanding the heavy
decline in condition of spring wheat
during July estimates of the yield still
point to n considerable marketable
surplus for which excellent prices are
promised.