The morning journal-courier., 1908-03-09
FINANCIAL REVIEW
Sold Out Condition of Market
Evidenced by the Weeks
Developments.
BUSINESS SHRINKAGE HALTS
Mixed State of Business Affairs Ex-
plains HOlding-Off Attitude
I'm Securities.

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New York, March S.-Progress in the
working out of the problem of restora-
ton of business and industry. SO far
as 1t was reflected in the securities
market last week, was slow and la
'borious. Market operations were much
neglected and price movements slug
gfsh and uncertain. Abstention from
the market was as marked on the part
,of sellers of securities as of buyers.
I'm fact, a feature of the market was
a scarcity of market supplies of stocks
which caused the shorts disadvantage
lin any attempt to secure stocks for
covering operations. The consequence
was q show of firmness In individual
stocks even when unfavorable devel-
opments were announced: a safe indi-
cation of the sold out condition of the
market. Beyond the occasional buy
ing by uncovered shorts, however. the
demand was meaeer and unimportant.
A situation resembling stable equili-
brium of prices was the result. Spec
ulative markets almost invariably ar
rive at such a state following an up
heaval such as that of last fall. The
condition marks the arrest of the pro-
cess of contraction and the pause Of
capital while awaiting indications of
the next phase In affairs.
Signs from the general business
world of the arrest of the shrinkage
following the financial crisis are dis
,cernible in more than one direction and
the slight Improvements reported keep
alive hope that the corner has been
turned towards steady betterment. The
action of the securities market, how
ever, does not reflect full confidence IN
the immediate progress of improve
ment. The mixed conditions in the
fields where the improvement Is most
shown help to explain this speculative
attitude. The decision Of the Amalga-
mated company to resume production
IN the Montana mining camps was
heralded as positive evidence of bet
.terment in that trade, although &C.
.companied by the explanation of ex-
-spected revival in demand for the pro-
duct by the time the out turn shall be
ready for the market in form of re-
fined copper four months hence, rather
upon the actual present state of the
market The present state of the mar
ket In fact has been unsteady, the
yielding of copper prices being attrib-
uted partly. however. to the prospect
of increased output from the resump-
ton In Montana.
Reduction of dividends by the Calu-
met and Hecla and the Wolverine
companies. were counterbalancing in
first one of the copper securities. From
the iron and steel trade came intelli-
gence Of slight and slow improvement
Here also the signs of instability In
the prices of iron made an influence
which kept alive uncertainty over the
ultimate adjustment of the price level
and deferred buyers from committing
themselves. Statistics of bank clear
ings for February showed a general
business activity still much contracted
compared with previous years, and the
record of failures for February also
showed a heavy rate OF financial cas-
ualties. A vital element In the pro-
gress of restoration will be the out
come of the country's crops for the
year, and that subject still lies so far
beyond the power of exact computa-
ton as to make 1t a prime factor in
holding speculation In check. Reduc-
ton of the surplus of freight cars on
American railroads makes an encour-
aging item in the weeks summary. In
roads upon earnings of railroads are
so severe, however, as to bring into
question future dividend return and
ecen, In the case of the weaker COM
panies. the meeting of fixed charges.
The struggles to be met In the read
justnent of wages in the carrying out
of economies is viewed with disquiet
Speculative. sentiment is sensitive to
political developments and to all man.
lfestations of governmental and legis-
lative measures towards corporations
and financial activities. The stock
market element was much disturbed
by the introduction of the Hepburn
bill into congress proposing to levy a
tax of 80 cents on the transfer of ev-
cry 500 par value of stocks Similar
measures directed against dealings In
future provides in commodities con.
tributed to the unquiet feeling on the
subject.
The rates for money have tended tc
relax both here and abroad, the re.
duction in the bank of England offic-
It'll discount from to 3 1-2 per cent
being accepted as decisive evidence or
this point. The reduction in the Ger
man bank rate was confirmatory. The
effect on the investment In securities
has been slight and opportunity is not
yet regarded as favorable for the flo.
tation of new capital issues, large
amounts of which are held in abey-
ance for such an opportunity. Much
depends on securing fresh capital In
this way for the resumption of work il
various fields, for betterment and ex-
tension of enterprise
The power of resistance TO attack
shown by the stock market increased
In the course of the week and ended
with demonstration Of positive