Omaha daily bee., 1907-09-09
BETTER FINANCIAL FEELING
Representations of Disaster Have
Failed to Msterialize.
MONEY COMING OUT OF COVER
BIG Burlington Dividend and Presence
of Money to Move Crops Causes
More Measuring
Feeling.

NEW YORK. Sept. s-There was a dis
| tinct improvement in sentiment over the
| financial outlook last week, which was
traceable to an important extent to the
failure Of some of the representations of
trouble which had been credited. In sew
! eral instances where the event justified
the apprehensions the market showed that
the bear party had more than sufficiently
anticipated the bad news, and the buying
to cover shorts helped on the recovery
| in prices. These conditions In the market
must be taken account of in estimating
the extent of the improvement Indicated
by the near recovery in prices. There was
marked subsistence in the pressure OF
selling and a decrease in the feeling of
| apprehension could be inferred from this
as much as anything else. There were not
lacking some positive developments OF
favorable character as we'll a principal
item in the Frightening prospect was the
easier money market. This strain Of the
September ] settlements which were US
ually large, proved much less severe than
was expected. The call money market
! did not get above 4 per cent at any time,
| and promptly relaxed, while in the rates
| for time loans there was something like
/ a collapse. This was considered as the
widening effect of the relief measures of
| the United States treasury, the announce
ment of which led to an almost immediate
relaxation In foreign money markets and
in foreign exchange rates here. Interior
exchanges on New York rose also, and
the conviction spread that feeling had
| grown overanxiouus about the immediate
money situation.
| The violence Of the reaction suggested
that something akin to boarding of capital
had been going on in the process of
| holding out for possible better terms in
placing 1t. The break in interest rates
brought out unexpected reserves and
funds that had been held in cali loans
especially sought lodgment in time loans,
with the evidence of easing conditions
there. The immediate amount of govern
ment deposits which have been made is
not divulged, although the grain centers
and the banks which make a speciality of
commercial loans are believed to have been
most favored.
Bad and ReassurIng Features.
The announcement Of failure of stock
exchange house on Thursday was the out
come of a long enduring series of rumors
of trouble OF this character and led to COW
ering of shorts rather than to any renewed
liquidation In the market. The same was
true of the passing of the dividend on the
Interborough Metropolitan preferred stock.
This has long been an accepted certainty
and the price of securities of the company
had already fallen to level commensurate
with the expected defanlt On the other
hand, the increase and extra disburse-
ment on the Chicago, Burlington & Quincy
dividend and the time at which 1t was
announced were very efflcacious In stimu-
lating the recovery in stocks. The profit
able result Of this to the treasures OF
the Great Northern and the Northern Pa
chc, by reason of their joint ownership
of nearly all the Burlington stock. gave
rise to a swarm of rumors OF proposed
bonuses to stockholders in these companies.
The rumors were a potent factor In the
considerable revival of speculation which
occurred in the latter part of the week
Great interest continues TO attach to the
outcome OF the coming sale OF &O,OOOO0O of
New York City ~ per cent bonds. On the
degree Of success which attends that sale
| will hings Il is believed, the confirmation
OF the revival OF investment confidence
which has sprung up. Opinion is general
that the bond sale will be a success and
that a considerable foreign participation in
the issue will be feature. Another item
in the situation which is taken account of
is the heavy return tide of foreign travel
J 1t is asserted by competent authorities
that the amount OF money spent abroad
this year by travellers is larger than ever
before and the influence on remittances on
the foreign exchange market has been
strong This drain is now sNbsiding and
the outward movement OF the crops is also
at hand Unasiness continues manifest
owe rthe stability OF the copper market al
though the reduction TO is cents pound
was declared to recognize the basis of
agreed price between the producers and the
largest consumers. Anti-corporation sentl-
ment also has been a subject OF consider
alton by reason Of the Resumption of pro-
ceedings In some of the pending prosecu-