The daily morning journal and courier., 1907-09-02
GENERAL REVIEW QF TIE FINANCIAL SITUATION Anxiety and Apprehension AL .Asi layed. SHORTS IN STOCKS COVER Subsistence of Pressure and
 Decentralization, and
 the Causes.

New York, Sept 1.-The feeling of anxiety and apprehension which has been prevalent in financial circles for several weeks past was perceptibly quieter last week and this was reflect ed in some improvement in prices of securities. The result was accomplish ed without any very substantial revival of demand for stocks, the buying com ing clearly, for the most part, from the covering of short contracts! left open as a consequence of bear operations dur ing the prolonged decline in prices. On the selling side, however, there was a market subsistence of the kind of prese- sure which has kept the market in disorder during the previous period. The change in sentiment was easily diseernible in the disregard of the many rumors of al alarming character which were circulated in the early part of the week, alleging endorsements by stock and bond houses and even by influential mercantile houses The bears soon perceived that these devices were intellectual in inducing further large offerings of holdings and they were led perforce to buy in stocks on a rising scale to cover their short con- tracts.
 Quite the most influential factor in bringing about the betterment was the announcement of the secretary of the treasury of his intention to make large weekly deposits of government funds with the national banks during the period of the crop moving demand The response was prompt, not only in the American money market, but in the great foreign money centers as well.
 In London especially the discount rate declined and it became quickly manifest that defensive measures in that market against New York's SUD- posed intentions to draw on foreign money resources were being abandon ed, AS a matter of fact the earnest purpose of present recuperation amongst the great foreign bankers ' was based largely on their solicitude over the prospective requirements of the short supplies of food stuffs abroad and the necessity they would be under of making large renittanoes to this country to supply their needs when the outward movement of our crops sets in. The treasury measure for supplying our currency needs give promise of a relaxation of the demand on foreign money resources for this purpose. There is general agreement, however, that this country's position in the international exchange is stronger than for several years past at this period of the year. For one thing foreign lenders of money have ex- ercised a sharp discrimination against would-be American borrowers, so that | it is believed outstanding bills in for eign markets running to maturity are much smaller than is usual, the de- crease from last year being estimated at several hundred million dollars
 Even the usual offerings of commer- ! cial bills of exchange against future l shipments of commodities have been
 unusually small, owing to the doubts | felt over the outcome of our crops. ] 1 very large return of foreign holdings of American securities to the home
 market This has been a material ] factor in adding to the burden of the
 home market during the period of
 strets, but the floating supply of | American securities abroad has been correspondingly reduced and a smaller
 supply left available for sale to inf1u- ence the exchange.
 The reception given to the announce
 meht of the intended sale on Sept. t
 of $4O,OOO 900 New York city bonds was
 another influential factor in reviving confidence in~the investment situation
 Not all of the early rumors of the for.
 nation of a bankers syndicate to bic
 for the whole issue were confirmed, bu
 the opinion amongst bankers was that | the offering would prove a success and l that a considerable portion of the issue
 would be placed with foreign investors ] The fact that the rate of interest on