The morning journal-courier., 1908-03-16
FINANCIAL REVIEW
Business Reports from Signifi- cant Fields Show Signs of
 Betterment.
FEWER FREIGHT CARS IDLE
Iron and Steel Reopenings Especially Notable-Declining Money Rates
 an Influence.

New York, March 15.-The prevail ing opinion reflected in the financial district last week was of increased confidence that the condition of af- fairs was mending. Evidences were not universal that contraction had run its course. but from fields that were considered most significant the signs of betterment were accepted as testi- mony that the situation was shaping towards improvement. Figures com piled by the American railway asso- citation of the number of idle freight cars showed progressive reduction for the last two fortnightly returns These figures were highly influential in shaping opinion on the general sit uation. Scattering reports of re- sumption of work by factories which had suspended or largely reduced op- erations during the depth of the de- pression. although mixed with evi- dence of further curtailment in other directions. were a cheering factor. Especially in the iron and steel trade the reports of re-openings were not able. A recovery in the price of cop per. which had been falling since the decision to reopen the Butte copper production. gave some reinsurance to the confidence in improvement in that trade which was expressed in the re-opening in Montana. Declin- ing money rates here and abroad were an element in the situation and the discrepancy in money rates here and in Europe induced some invest ment of foreign funds in New York. This was mostly confined to high grade mortgage securities and to some takings of mercantile paper. Buying for foreign account was per ceptible. however. in the stock mar ket and the presence in foreign capi- tals of some of the most influential American financiers caused the sup position that foreign buying of stocks was not unrelated to this circum- ptance. The casing of the money market and the stirring of activity in stocks brought into consideration the subject of financial needs of the great WHICH uiiSuP- piled and which insure attempts to float new issues of securities In the near future. The heavy over-sub- scription at good prices to a small issue of New York state bonds was considered attentively as a sign of plentitude of capital seeking safe and attractive investment. The market for existing bonds was studied to dis cern a reflection of this improvement in the general bond market, but with results somewhat disappointing. The bond market lacked breadth and the nrices at which seasoned bonds are still selling do not make a propitious condition for the offering of new se- curities.
 The upward movement inaugurated in the stock market was under some suspicion of being fostered by the larger banking and financial powers for the purpose of preparing the way for contemplated new issues. This did not deprive the movement of cheer ing influence on financial sentiment. The advance in stocks was made feas- ible by the evident completion of hquf- dation and a consequent scarcity of stocks offering which removed obsta- cles to the operations for an advance. An obstinate short interest also was left at a disadvantage by the cessa- tion of liquidation andthe necessities of this element offered basis for raising rrices with assurance that some de- mand would be met on which to resell at profit. Outside of this demand from the uncovered shorts the absorp- ton of stocks by outsiders and invest ors was reported small. The diges- ton of profits was constant process at various stages of the stock market movement, bat he manner in which this was conducted was impressive as evident of the skill and resource as the speculative leadership which had as- serted itself in the market and added to the confidence with which it was followed.
 Overlying the basic factors of the arrest of the business contraction and the moderate revival which had sci fin. number oof less clearly defined influences were brought into place ir the weeks speculation. The most in- fuential of these was the impression that measures were projected by the national administration designed tC afford opportunity to the railroads tC secure increase of rates which vii obviate or modify the necessity oi
 r7t,se -fzx,. industriously fostered at all stages oi the rise in prices and was the subject of varying discussion mixed with ap. rroval and criticism of the supposed plan.
 Expression of disapproval from ship. ping interests raised the question o' the increased cost to various lines ol production which might offset advant. age to the railroads and to the genera situation of the increase in freight rates. The stimulating effect nn tht rise in stocks, however, was unabatet up to the close of the week. Rumors that the Union Pacific investments SC. grafton plan was imminent, with ar extra stock dividend involved were ar active influence in the speculation. Re. ports of a governmental investigation of the stock trading to decide the ex- pediency of laws to prevent stoct gambling had rather chilling effec on the aggressiveness of the specula. tion, but the official denial of the re. ports helped 10 a sharp rebound 1T stocks.