The morning journal-courier., 1908-12-07
FINANCIAL REVIEW
Play of Strong Ccntending Forces Showing Specula-
 tors Confusion.
ISSUE OF NEW SECURITIES
Means Assured for Resumption in Many Jdnes--Nfuch Refunding of
 Short-Time Obligations.

The stock market as a medium for the expression of speculative opinions showed the play of strong contendinS forces during almost the whole of last week. There were days of marked strength and days of acute weakness and other days when opposing move ments were going on at the same time in great confusion The opposing opin- ions ranged themselves broadly on the conservative view of danger from over speculation on the one side and in con- fidence in the security of abundant money and banking resources to sus- tain the speculation on the other The latter view was not altered materially by the increased frmness in the money market caused by the absorption of re- sources in many directions
 The principal avenue of absorption of available resources at present Is through the issue of new securities which have succeeded each other in rapid succession to the extent of sew eral hundred million of dollars in the last few weeks with prospect Of i'm portant issues still to come. The readiness with which these new issues have been absorbed and the large re- sources of capital awaiting investment thus indicated have been pointed to as one of the strongest features of the situation Means are thus assured for resumption of projects of improve ment involving outlay for supplies which must stimulate greatly the con- sumptive demand for extensive lines of commodities.
 While this Is obviously true there is the modifying consideration that a large proportion of the recent new fin- ancing Is in the form of refunding Of short time obligations which were put put by the great corporations in the period of financial stress from which the country is emerging and for which extravagant rates of interest were be- ing paid The new financing reveals material relief from the onerous rates paid on the earlier temporary obliga- tions, but the prices at which the new securities are sold fail to demonstrate the full re-establishment of the former easy terms of borrowing. even for long fixed periods The lower prices offered for the new securities constitute an at traction for capital which prompts some diversion of holdings out of OK istng securities at the current high level of prices into the new partcipa- tlons Another source of pressure in- volved in the sustained high level of prices for securities comes from the persistent liquidation of foreign hold ings of American securities, which come home to the New York market. Remittance in payment for these has carried foreign exchange to the gold export point and has started move ment of gold to France. The outgo of gold at this time when the tide of ex- ports of merchandise usually carries the movement the other way and in a year when the excess value of mer- chandse exports has run far in excess ot any precedent Is, in itself, a strik- ing testimony of the congested condi- ton of the money market in thls coun- try.
 Interior demands upon New York for currency were extraordinarily light through tho autumn and the fact that thc treasury department was with drawing funds from the money market and is still doing so, in contrast with the practice of many years of measures of relief for the money market, throws furthcr light on the unusual conditions existing This condition is due, of course, to the fact that the huge in- irrtion into the circulation to meet the panic requirements last year has never been subtracted again, while the ac. tiyity Of trade has not been restored tr degree that makes anything like the former requirements for currency or redits The reported lull in the iror and steel trade the reactionary tend cncy in the copper market, the halt 1T the increase in railroad freight move ments with the early approach to com pletion of the grain and cotton move ment and the moderation of the rate o expansion of bank clearings are pointed to in confirmation of conservative at titude. The coming tariff revision ant suggestions of labor disputes in the an thracjte regions and on the Pennsyl vania system west of Pittsburg, were additional factors of restraint but no ef prevention of the speculation.