Omaha daily bee., 1908-05-18
Persistence of Upward Trend Grad
ually Convincing the Sceptics.
POWERFUL MEN ARE BEHIND IT
Easy Money Market a Help to the
General Recovery.
CASH FOR CORPORATION NEEDS
large Financial Interests Evidently
See Brighter Prospects I'm Future
for the Great Industries
of the Country.


adYanced last week. with growing impetus
and Increasing volume of transactions, the
total sales on Thursday rising to the larg-
est Of any day since last summer. before
the financial crisis developed. The per
sistence of the advance and its freedom
from influence OF check by events seeming
unfavorable TO values. gave It impressive
ness and had the effect Of converting
growing number Of sceptcs In the profess
sionat operating class, who had contested
the advance by short sales at various
stages and had been forced repeatedly to
cover at a loss. The abandonment OF the
opposition by this class and their turn to
the long side had not a little to do with
the Increased animation and buoyancy of
the market The success with which all OBJ
staeies we're overcome and prices sggres-
sively advanced from the inception of the
present movement has been convincing
proos. Of the wide resources commanded by
the leaders of the movement, who are COM
monty believed to include great banking
houses and individual capitalists whose in
fluence commands the resources of the most
powerful group of capitalists in the coun-
try.
The suspicion of a manipulative origin
for the rise in prices with the purpose OF
creating a semblance of Improvement
where the reality did not exist served to
hold aioof from the market most OF the
general public, which generally joins In an
important market movement. The eonti-
dence and consistency with which the move
ment is pursued had a growing influence
on sentiment last week and had the increas-
ing effect Of causing belief in the salts
rsct,on thus expressed on the part of great
capitalists with the degree Of Improvement
IN affairs.
Future Looks Good.
In tha aapartment of the money market
this movement was clearly enough percept-
fble. For the easy money market to further
the success of the financial plans OF cor
poratlons. however. there was necessary the
addition OF demonstrations of confidence
an the security OF values. The rise In the
seyetk market has operated as such dem
onstration. The scepticism with which It
was accepted at first was due to the con-
nicting evidence OF news affairs In general
This discrepancy continued last week IN
spite of the growing force Of the rising
stock market tide. That prices of securi-
ties Continued to rise in spite OF unfavor-
able Industrial and commercial adviees was
assumed to mean that promising signs
could be discerned beyond this immediate
situation that prompted the large commit
rnents 10 holdings Of stocks which were
beings made from day to day in the stock
market For instance, the declared purpose
Of the principal allied interests in the iron
industry to hold the prices OF that great
basio commodity was evidently quietly
abandoned and practically an open market
for iron established While conditions there
are greatly unsettled and no change is re-
ported in the demand for finished products,
II is cohceivable that the way to improve
nent may be opened by the new demand for
iron brought out by the concessions. The
same holds true OF the copper industry,
where successive reductions in prices have
been of discouraging effect while neces-
sarIly representing progress toward the
stage Of stability, where demand will over
take supply and revival of the industry set
in Great Influence in revving effective
demand for commodities is relied on from
the success of new bond issues by the rail-
roads and the consequent supply Of re-
sources for the resumption of buying and
construction.
Looking Far Ahead.
The comprehensive and aggressive up
lifting Of prices must be read in this light
and representing views that pierce beyond
a present that includes the largest surplus
Of idle freight cars in the history of the
country, an iron market with put sllsh'
STRINGS from a condition of stagnation, a
shrinkage in bank ciearings that is an un-
mistakable index Of commercial quiet, rail-
road earnings that reflect struggle 70
conserve a margin over expenses for dis
tribution to stockholders and complaints OF
traffic managers that conditions from week
10 week are without improvement. Even
on the side OF the crops, the assumed sue
cess OF which Is a necessary condition "a
the revival which the stock market move
ment seems TO predict, the immediate
events OF the week were not inspiring, the
unfavorable weather portending some de-
cline IN condition, which Is not, however
believed TO be serious The great abun-
dance OF money market resources has not
been at all affected by the important with
drawals OF government deposits. by the
resumption OF gold exports and by various
financial measures through syndicates in
cident TO the new issues Of securities. The
relaxing tendency OF the money markets IL
the rule. not only here, but abroad, where
an early satisfaction OF all demands upon
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