The Montgomery advertiser., 1907-10-21
Financial Review.

C New York, Oct. 20.--The principal source of the fresh disturbance in the stock market last week was traced finally to the copper world but before the conditions had become sufficiently we'll defined the financial district was kept nervous by all kinds of run1ors of the nature of trouble that was threat ening. The vagueness of the supposi- tious current regarding the urgent liquidation that was making itself manifest aggravated their disturbing effect on sentiment The result was seen in the range of quotations estab- lished which were severe in consid- erable list of stocks. Foreign money centers were kept well supplied with all the alarming rumors current and originated others on their own account, sending securities for sale to this mar ket. meanwhile, and restricting credits to New York in many ways. under these circcumstances there was some thing like relief felt when the circum- stances became known regarding the market position in United Copper stock and a futile attempt to corner that stock and to administer chastizement to the hear party which had been i'm terfering with the liquidation in the stock.
 The reduction in the dividend on Amalgamated Copper for the quarter from per cent to 1 per cent--a Natural- : ly aggravated the effect of the United Copper episode and successive reduc- tions in the price of the metal kept open the root-cause of the disturbance. The reduction in the price of the metal failed to bring in any effective buying and the possible limits of tue falf re- mained undefined. Reports were in circulation of intended entire shutting down of production in the Montana mines. Fears of coming business con traction that might run into depression were stimulated by the course or the copper trade and had some lncentVe also in the advices from the Iron ana steel trade. Notwithstanding the sus- tained,activity In that trade, there Is a feeling that the falling off in orders for future business presages coming contraction on an important scale. rhe railroad and steel trade authorities are reported to be still at variance on the patterns of steel rails with orders helo up in consequence.
 Foreign selling of securities here and some maturing indebtedness to foreign lenders for which renewals were re- fused. kept up the foreign exchange rate and kept alive the discussion of possible gold exports. Bankers do not look for an outflow of gold while money rates are sustained as they are now and while the interior demand keeps up The question of treasury relief for the money market is eomph- cated by the high rate of foreign ex- change which carries the int'malon that any marked increase in the mar ket supplies of money might initiate gold exports
 Tn the prospect there Is to be con sidered an assured foreign demand for our grain surplus at the high prices prevailing and the cotton which Is held from the market is expected to go out ultimately in large volume, to Europe, New York's control of the intefnatlon- al exchanges is expected, in that way, to increase, with effect in casing the money market although the declining tendency in value of imports which has set in may be accepted as another in- dex of contracting demand for com modities,