The morning journal-courier., 1908-06-15
FINANCIAL REVIEW Many Developments of Last Few Days Leave Mar
 ket Weak. CONVENTION A FACTOR Mercantile Lines Report Expansion Reduction in Number of
 Idle Cars.

Until after the middle of last week the stock market was in condition of stagnatlon, and the dull resistance of prices while this lasted and the apparent absence of selling pressure in spite of the lethargy of the de- nand. was taken as a good augury of the technical condition of the market A change followed the announcement of the plan for funding the Erie bond coupons and the closing subscriptions to the Union Pacific bonds and acute weakness developed. The approach of the convention period for the great political parties has an influence in expressing speculative activity. Be- sides this general consideration mak- ing for dull markets there were number of incidents in the week hav- ing an important bearing on shaping the future. First place In this re- spect Is accorded by financial opinion to the cut in prices of steel products which was formally announced through the officials of the United States Steel corporation. Tho aban- donment of the policy of rigid main tenance of prices of steel products in face of the prostration of the con sumptive demand meets common ap- proval in financial circles where, ln- deed, the policy has been subject of verying criticism for months past. But the prospect of wage adjust ments to meet the reduction in prices realized for steel products and the danger of wage controversies with the complicating factor of the political campaign are not relished as possible speculative factors.
 Another weight on the market was the uncertainty over the market poll cy to be pursued by powerful finan- cial interest when the Union Pacific bond Notation was once fairly con cluded. The assistance proffered by the head of the Union Pacific system to the Erie by purchase of that com :. pany's notes at a time when receiv- ership for that railroad seemed inevIt- able was supposed to be directed to- wand the general purpose of conserv- ing confdence for furthering plans for needed financing of other railroad projects. The closing of the sub scrlption lists for the Union Pacific bonds and the plan for funding the interest on the Erie bonds in view of the admitted insuhiclency of earnings 10 meet that requirement. were an nounced simultaneously and gave sinister impression of tiding over of an embarrassing situation while the new capital notations were being eff fected The apparent absence of pre- vious supporting measures in the stock market after these announce ments added to this impression,
 General conditions show progress towards recuperation. and confidence on that side of the situation has grown. The government crop report as of June 1 had a reassuring effect with promise of wheat crop esti- mated at over sss,0O0,0OO bushels Mercantile lines report expansion and the reduction of 22,0oo In the number of idle freight cars for the two weeks ending May 27 was counted an accu- rate index of better traffic conditions Railroad officials. however. were in clined to great conservatism in their expressions over the growth of busi- ness.
 Money continues to accumulate in great centers of the world with the resultant downward tendency of in terest rates The money market at New York was unaffected by the con tinuance of gold withdrawals for ex- port, by the expectation of further call for repayment of government de- posits and by the accumulation by the trust companies in preparation for an addition reserve requirement. which becomes obligatory on July l.