The morning journal-courier., 1908-07-27
FINANCIAL REVIEW Growth of Confidence Clearly Shown in Markets Action
 Last Week. FEAR. OF EXCESS OF HOPE Official Denial of Alleged Wholesale Assumptions Dampens Without
 Discouraging.

The financial markets all gave clear expression last week to the growth of confidence in the improvement in the situation of affairs and to the hopeful spirit over the future. In the stock market the movement was so pro- nounced and carried to such lengths as to give rise to some apprehension of excess The growing outside de- mand for securities was taken ad- vantage of for this reason, to effect large realizing of speculative holdings The professional board room traders expressed their doubts over the move ment by persistent short sales on the advances. It was not until the end of the week that prices yielded The mannerin which the market digested these sales for various accounts gave a most striking demonstration Of the scope of the new movement and its passing from the more artificial stage of professionalism and manipulation which have been conspicuous for sev- eral weeks Evidence of excess in the movement was found In the kind of reports regarding some of the indus trials which were put in circulation and which were, met with formal de- nals from official sources. Alleged arrangements for immediate resump- ton of the full mill capacity by the United States Steel corporation and by some of the railroad equipment com panies offer examples of such reports More authentic information confirm ed the gradual betterment in demand which was being felt but moderated the terms of the accounts for specula- tive effect. Thus President Corey of the United States Steel corporation placed the present rate of activity of their works at 5G per cent. of capac- ity. These occasional admonishments against speculative exaggeration did not discourage the new growth of con- fidence Besides the growth of out side speculative operations, there was a notable increase of more solid in- vestment demand, based on convinced assurance of intrinsic values at pres ent levels of prices This kind of de- nand was especially marked in the bond department at the stock ex- change, where the weeks sales rose to the extraordinary total of $25, ,000.- GOO par value This heavy aggregate of transactions was characterized also by unusual variety and absence of ex- cesslve congestion in a handful of is- sues from any individual causes, tes- tifying thus to the breadth and gen eral factors of tho demand
 Not only in the business in the bond department of the stock exchange, but amongst bond houses outside the ex- change was this revival of investment demand to he seen. An important de- velopment in this field was the plac- ing of some large blocks of American bonds abroad. Sales If exchange against the foreign subscriptions were sufficient to cause break in the price of foreign exchange and to put a stop to gold exports.
 The reversal by the appeals court oi the $29, ,000, 900 fine on the Standard oil company decreed hy lower court was given a place of importance in the weeks developments by the financial community It is relied Ipon to quiet fears of foreign capital that Ameri, CHH tNIDbIHtlinS are III NdUtFI ~ tll' croachment to the point of confisca. tion. Such fears found expression lr the foreign financial press at tho tim' the fine was levied and wore factor in paralyzing the foreign demand fol American securities.
 Confidence is unabated that tho country's crops will offer profitable yield and afford a substantial under lying basis for repair of wealth. Tn, evident turn in the tide of ~he curren cy movement shown by the fall il New York exchange at Chicago, L viewed with tranquility in view 0 the heavy surplus of banking reserves The only effect has been slight hard ening in time money rates for per iods carrying over the md of tn year The development of an interio demand for currency, in fact, is mad a factor for additional encouragement as proof of increased business activ fly,