The morning journal-courier., 1908-11-23
Soberer View of Conditions Re flected in Lessening Activity and Uncertain Price
 Movement.
BIG CAPITALISTS STEP IN
Preparation for Large Issues of New Capital Incentive for Many
 Stock Sales,

tracted to a daily average of but llt- tle more than million shares at the New York stock exchange, compared with the average of upwards of a mil lion and a half shares a day for the week preceding, Coupled with this diminution In the activity of the mar ket there grew up a degree of uncer- tainty in the price movement in con trast with the uniformly strong up- ward movement which had prevailed since the presidential elections. These facts registered the soberer view of the prospect for advancement of val ues growing out of the improvement in business and financial conditions and the apprehension that the specu- latve pace had been over-running it. self There Is no trace perceptihle here of any fears for the ultimate prospect for increase of prosperous conditions The conviction remains unaltered that the situation Is adjust ed to steady resumption of business and industrial activity in all lines, IL is in the rate of dsCounting the ex- pected improvement in the stock market speculation and in the weak ening of the technical position of the stock market by that process that the sources of distrust have been found In one or two fields of industry there were signs of danger that the specu- lative enthusiasm was outrunnng the present condition also. The substan- tial financial clements amongst the bankers and large capitalists were inclined to voice warning against this tendency and to depreciate an attempt to enter upon a sudden boom of industry and business as threaten ing unhealthy accompaniments which might endanger the permanence of the bettermont ft was the we'll in- formed assumption in the financial district that 1t was from such sources that the supply of securities for sale came which put check on the ad- vancing course of prices and led to the later reduction. Accumulation of stocks by interest with extensive in formation and habits of leadership in affairs began carly in the summer in anticipation of the coming revival. The restoration Of gehera confidence which followed the elections brought into the market miscellaneous de- mand which afforded a medium for distribution of these accumulatons al large profits. The process was pursued with skill and caution, and, undoubtedly with manipulation ac- compartment in the stock market,
 The support and protection of the market has not been entirely ahan- doned with the reduction of holdings by the larger interests, but has be- come palpably less aggressive. The newer and more widely scattered holders of stocks are less capable of organization and combination for the support of the market and decline in prices leaves them more vulnerable to the requirements for increased credits to meet the situation or to force reduction of holdings
 Another incentive to conversion of stockholdings into cash is the prepara- ton for large issues of new capital which are coming out. The Panama Canal bond issue of the United States government, the New York city bond tissue, Korcan-J Japanese loan and an Indian loan in London are cases in point The Illinois Central bond issue and Philippine railroad issue in New York arc the preliminaries. to long line of important applications for new capital from railroads which are looked for in the New York market. These Issues are applied for with avdity as they are offered and this evidence of the large supply of capital available makes one of the most important fac tors towards revival, in the situation Means are thus assured for redemption of Improvements, extensions and bet. terments by the railroads which vii set in motion long train of conse- uuences, all making for increase ot consumptive requirements for commo- dities and prosperous activities in sup. plying them. The transfer of capita out of holdings of older securities al the present high prices into the newer Issues at more attractive prices is however inevitable,
 New capital Issues and increased needs of commercial activity are ex- peeted to absorb added amounts oi money and credits, The money mar ket itself has shown but slight effect from these influences The previous weeks hardening of time money rate' has given place to some reaction, The unsettlement of foreign prices has beer of sone influence on the side of de. pression The course of the hearings on tariff revision before the ways ant means committee of the house al Washington has contributed some fac tors against prices here and there IT the list of securities.