The morning journal-courier., 1908-09-14
FINANCIAL REVIEW Continued Stimulation of Mar ket by Redundancy of
 Money. FEW CAPITALISTS CONTROL Foreign Offerings of Investment Hold ings Freely Made--Crop Funds
 in Demand.

Last weeks operations In the stock latins effect of the redundant condition of the money market in further rise in prices In the early part of the week The sharp reaction which accompanied the small furry in the call money mar ket the latter part of the week was 6 striking testimony 10 the important part played In the speculative position by the ease of the money market. The abundance Of funds which could be procured on call at one per cent or un- der constituted strong attraction for the taking on of stock holdings and the marking up of prices. The operations to thls end have been frankly ascrib- cd 10 a limited circle of very wealthy capitalists, with the following of strict ly professional operators who trade In and out of the market in the wake of such a movement. There has been general agreement among commission houses that the general public was talk ing small part in tho current activity In the market. The inference from this condition would he that the active dealings on the stock exchange were not effecting any widespread dlstrihu- ton of stocks. There ls equal agree ment, on the other hand, that substan- tial holders of stocks have shown It. tie disposition to market their holdings ir spite of the attractive level to which prices have been lifted by the summers rise
 The readjustment of prices was justi- fled In the minds of It's promoters by the low interest for money compared with the return on securities and by the revival in business activity That the money condition was outrunnine the business improvement as domi- nant influence on the stock market has been growing suspicion. The promise of good average crops and at profitable prices which Is now in prospect does rot alter the necessity for speculative readjustment of earlier and more san guine estimates The moderate rate of recuperation in the. iron and steel trade and the lack of evidence that railroad earnings are being restored to the former level are of like admoni- tory influence upon excess of specula- tive enthusiasm.
 The opinion of the small extent to which investment holdings of stocks are being marketed finds an exception in the cases of foreign holdings, of which free offerings are coming home according to experts In the foreign ex- change and international stock market This Is believed to form an important element in the persistent strength of the foreign exchange market, which brought a revival of talk of possible gold exports during the week. A .spe- cial factor in the foreign exchange market was the requirement. for re- demption of New York city revenue bonds falling due in London on No- vember l. This requirement. in itself is not sufficient to effect the extraor- dnary strength of the New York po- sition in the unequaed excess of mer- chandse exports from this country since the first of January the unusually small borrowing abroad thorugh the summer of finance bills and the small drawings of exchange heretofore In anticipation of the crop movement. Preparations for coming government loans are prompting the strengthening of the central banks abroad and the lifting of money rates which this en- tails tends to force securities into the American market for sale from foreign quarters. Demands from the interior for currency to move the crops, while belated and still light, ar beginning to make some inroad on New York bank ing reserves. The strength of the for eign exchange market at this season, with all these things considered leaves something to be explained.