The morning journal-courier., 1908-04-06
FINANCIAL REVIEW
Reactionary Tone Evident in
Securities Market Last
Week.
CONDITION ANTICIPATED
Iron and Steel More Dublous-In-
crcasing Attention Centcring on
Crop outlook.

the securities market last week, How
far the change in speculative sentiment
was the cause and how far effect of
this check to the previous advancing
tendency Of prices Is difficult TO discern.
Some explanation of the reaction Ia
found in the extent to which the adj
vance had run, a process which would
necessarily reach limit in attaining
the level which would adequately rep
resent the betterment of conditions on
which 1t was lnaugurated. Not only
this, but in accordance with the in
variable rule of speculative movements,
IL would be expected to over-run itself
and be affected by the realization Of
holders who had oyerstaycd the move
mont and felt no disposition to hold
through a possible decline.
The recognized organs Of tile iron and
steel trade assert that new orders for
finished products are on a scanty scale
and do not promise well to outlast the
spring influences towards activity
Prices for iron are not we'll maintained
and possible reductions continue to be
discussed, hut without sanction from
the representatives of the principal all
lied interests in the trade Prices for
copper have receded here ana abroad
and complaints are heard of accumu-
lating stocks of the metal. Railroad
officials express no enthusiasm over
any signs of expanding traffic. Re-
turns of earnings for the later periods
begin to show the effects Of the meas
ures of economy adopted since the bus
mess depression In control Of the rate
of shrinkage of net earnings by cur
tailment Of expenses against the de-
crease in gross earnings, This show
ing Is approved by holders Of securi-
ties, but 1t leaves for accounts the de-
crease in the wages fund and the re-
duction of the amount TO be expended
for consumptiye requirements of COM
modities. Estimates are beginning to
ed for In the efficiency OF railroad
equipment from the reduction Of out
lay in its maintenance.
Increasing attention Is centering on
the crop outlook, since decisive influ-
ence is expected In the shaping Of the
future from the years field. The con-
dition in which the planted wheat has
come through the winter Is considered
hopeful, private authorities of accepted
responsibility agreeing in estimating a
high percentage Of condition for that
crop. The publication on Wednesday Of
this week of the agricultural depart
ments official estimate of condition or
April will be an important basis Of
reckoning for this vital question.
Opinion in the financial situation
was shaped by the long drawn out
struggle to adjust the difficulties con.
fronting the Erie railroad. Due al.
lowance was made for the peculiar
conditions which aggravate tn,
troubles of the Eric, but this did no.
prevent unfavorabe differences re.
garding the general investment situa,
ton to be drawn from the Erie case
The discount in the price Of the ma.
turing Erie notes shows the excess o.
the difficulties of that company II
providing for floating Indebtedness
Nevertheless in list Of more thar
two score of note issues by railroad
and industrial corporations maturinl
at various periods up to four years
the prices at which they are selling
show varying discounts in nearly al
cases, and this although the rate o
interest return, is well above the pre-
valling interest rates for time loan'
in the money market. Prospects fol
the absorption of new issues Of secur
tiles are poor, from the indicato,
furnished by this showing. The sam,
conditions are reported In foreign
financial ccntors, whore the accumula
ton Of banking reserves and easnj
rates for money seem to afford small
advantage for Rotation of now issues
The heavy issue Of German and Prus
sian loans proved disconccrtng to In
vestmont markets In all the grea
money centcrs abroad Foreign eX
change in New York. IN consequence
coming outgo Of gold. The course o
tho Unitcd States government revc
nGas makes IT evident also, that larg
further Withdrawals Of govcrnmen
deposits from the banks arc imminent
The treasury IS expected to fortify Il
self not only against requirements 70
government expenditures but also "a
tho customary aiG to be extended t
the money market IN tho fall whe'
the annual crop moving requires a
expansion of facilities Tho none
market itsolf Is quito Undisturbed b
these prospective requirements, bu
the tranquil money market falls 20 AZ
ford any stimulation to the invest
mcnt demand either for existing issue
or for proposed new capital issues.