The Birmingham age-herald., 1908-05-04
STOCK MARKET
 OUTLOOK BETTER Expansion of Business Is Very
 Substantial RAILROADS MORE HOPEFUL Flow of Currency Into Central Bank Reserves Gives Assurance That Banking Position VIII Re-
 main Strong.
RAILROADS MORE HOPEFUL

New York. May 3-The mixed move ment In the securities market last week was fairly representative of the in ] fuence carried over from previous de- velopments In favor of higher prices l and of the obstacles inevitably encoun- l tered at some stage of such move ment. The volume of dealings ex- banded early in the week to n daily total larger than on any previous day period of last October. The rise in prices at the same time developed a buoyant character and the market took on an appearance of speculative senti- ment. subsequently a reactionary tone became manifest and there was de- cided shrlnlkage in the proportions Of the market The active rebound to the best at the end of the week ended with an unsettled tone.
 The influence responsible for the ad- vance was the cheerful feeling aroused by the pronounced success of the Penn sylvania bond sale and the hopeful augury from that event for the ability
 
 sume tn cir activities in the field of construction and improvement. Tho needs of the railroads In this respect are very large. The Journal of Com merce, estimates that notes and bonds maturing and stocks subscriptions fall ing due during the remainder of the year reach a total of nearly $2S4, ,000,- 900. In the field of new financing less exactness can be assumed. but the same authority traces probable new demands to the extent of about I2S0,- 900 900. With these financial needs confronting the railroads the Penn sylvania bond sale was regarded IS immensely important, as an indication that the deadlock overhanging railroad credits for so many months had been broken. The condition of the money market was confirmatory of this pros pect.
 The uninterrupted flow of currency into central bank reserves gave assur- ances that the banking position woul1 remain strong and would serve to foster the financing measures in con temptation by the railroads. The prom . ised abundance of banking resources is so great that little effect has been pro- duced on the money market by the credit operations already perfected by the outward flow of gold to Europe or by the call of the treasury for the return of s45 900. 900 of government de- posits held by the banks in two in- stallments during May. These various de velopments were made ground for the assumption that the usual stages fol- lowing a financial crisis had arrived at the condition of renewed accumu- lation of capital in sufficient supply 10 work a restoration of investment de- mand and a replenishment of the needs of enterprise.
 Accompanying this improvement in the money market and investment con ditions and in part flowing from them are certain influence of less cheerful import The heavy tide of the cur rency movement to banking centers is indicative of the contracted needs If the circulation and the impaired de- mand for use of money and banking facilities of active business
 Instability in the iron market and fears that prices of finish ed products must come down to an adjustment to the lower prices for iron have been subjects for discussion in estimating the immediate financial outlook. Par allel conditions exists in the copper market where the unstable state or the price for the metal has reflected the continued hesitation of buyers.
 The weeks influence from the crop regions were helpful the good condi- tion of the growing crops serving to keep alive a hopeful feeling in busi- ness and railroad circles even where immediate conditions were unfovorable