The Birmingham age-herald., 1908-12-07
STRENGTH EXISTS
 IN STOCK MARKET Movement for the Week Has Been Full of Fluctuations HIGH PRICES CONTINUE Pressure Has Been Exerted When Prices Reached the Highest Point
 Due to Fear That Finances
 Are Unstable.
HIGH PRICES CONTINUE

New York, December 6.-The stock market as a medium for the expression of speculative opinion showed the play of strong contending forces during almost the whole of last week. There were days of marked strength and days of acute weakness and other days when opposing movements were going on at the same time In great confusion. The opposing opinions ranged themselves broadly on the conservative view of danger from speculation on the one side and on the confidence in the security of abundant money and bank ing resources to sustain the specula- tion on the other. The latter view was not altered materially by the increased firmness in the money market, caused by the absorption of resources in many directions, the margin of sur plus supplies still remaining being pointed as to ample assurance of means to retain speculative holdings with safety. The principal avenue of ab- sorption of available resources at pres ent is through the issue of new secur- ities. The readiness with which these new issues have been absorbed and the large resources of capital awaiting in vestment thus indicated have been pointed to as one of the strongest fea- lures of the situation. While this is true there is the modifying considera- tion that a large proportion of the re- cent new financing is in the form of refunding short time obligations, which were put out by the great corporations in the present financial stress from which the country is emerging, and for which extravagant rates of interest were being paid. The new financing reveals material relief from the onerous rates paid on the earlier temporary ob- legations. The lower prices offered for the new securities constitute an at traction for capital.
 Another source of pressure involved inS the sustained high level of prices for securities comes from the persist ent liquidation of foreign holdings of American securities. The outgo of gold at this time, when the tide of export of merchandise usually carriers the movement the other way, Is striking testimony of the congested condition of the money market in this country. Interior demands upon New York for currency were extraordinarily light through the autumn, and the fact that the treasury department was With drawing funds from the money mar ket, and is still doing so throws fur ther light on the unusual conditions existing. This condition Is due. of course, to the fact that the huge in lection into the circulation to meet the panic requirements last year has never been subtracted again, while the activ- ity of trade has not been restored to degree that makes anything like the former requirements for currency or credits. The reported lull in the iron and steel trade, the reactionary ten dency in the copper market, the halt in the increase in railroad freight movement, with the early approach to completion of the grain and cotton movement, and the moderating of the rate of expansion of bank clearings are pointed to in confirmation of a conser- vative attitude.