The Birmingham age-herald., 1908-05-18
Prices Have Advanced So Stead- fly That Bears Have Re-
 faxed Their Efforts
CAUTION IS NECESSARY
 IN FUTURE MOVEMENTS
Suspicion of Manipulation for Purposes of Keeping the Market Up Still
 Exists But Confidence l Largely Prevails.

New York, May 17.-Prices of securi- ties advanced last week with growing impetus and increasing volume of transactions the total sales on Thurs day rising to the largest of any day since last summer, before the financial crisis developed. The persistence of the advance and it's freedom from in- fuence or check by events seeming un- favorable to values gave it impressive ness and had the effect of converting a growing number of skeptics in the professional operating class. who had contested the advance by short sales a' various stages and had been forced regeatedly to cover at loss. The sbafl, ,nment of the opposition by this class and their turn to the long side h,Ad not little to do with the in- CT, sed animation and buoyancy of the ma Net.
 The easiness with which obstacles were overcome and prices aggressively advanced from the inception of the present movement has been convinc present movement has been convincing proof of the wide resources commanded by the leaders of the movement, who are commonly believed to include great banking houses and individual capital ists whole influence commands the re- sources of the most powerful group of capitalists in the country. The sus- pieion of -inanpulative origin for the rise in prices. with the purpose of creating a semblance of improvement where the reality did not exist, served to hold aloof from the market most of the general public which generally joins in an important market move ment.
 The confidence and constancy with 4 which the movement Is pursued had growing influnce on sentiment last { week and had the increasing effect of causing belief in the satisfaction thus z depressed on the part of the great Capitalists with the degree of im- \ provement in affairs. In the depart ment of the money market this im { provement was clearly enough percep t tible.
 B Money Market Easy. |M Fer the easy money market to fur ssther the success of financial plans of Corporations, however, there was nec- < essary the addition of demonstration confidence in the security of values. The rise in the stock market has oper afated as such demonstration. The skepticism with which it was accep Fl at first was due to the conflicting { denee of news affairs in general Tt " discrepancy continued last week, in spite of the growing force of the ris- ing stock market tide. That prices of securities continued to rise in spite of unfavorable industrial and commer- cial advices was assumed to mean that promising signs 1t Is believed, dis cerned beyond this immediate situation \ prompted the large commitments to holdings of stocks which were be- ing made from day to day in the stock market.
 For instance, the declared purpose of the proposal of leaders in the Iron industry to hold prices of that basic commodity was evidently quietly abandoned and practically an open market for iron established. While conditions there are still greatly un- ] settled and no change is reported in demand for finished products. it is evi dent that the way to improvement may be opened by the new demand for iron bought out by the concessions. The same holds true of the copper industry, where successive reductions in prize nave been of discouraging effect, while necessarily repressing progress toward the stage of stability where demand will overtake supply and revival of the z industry set in.
 Great influence in reviving effective demand for commodities is relied on from the success of new bond issues by the railroads and the consequent supply of resources for resumption of I buying and construction.
 Speculation is Solid.
 As a veritable speculative medium, which the stock market undoubtedly js future and not present conditions ate expected to be outlined in it's action. The comprehensive and aggressive up- lift of prices must be read in this light, and as 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 but slight strings from a condition of stagnation. a shrik- age in bank c1earings that is an un- .hlstakable index of commercial quiet Ulilroad earnings that reflect strus { le to conserve margin over ex- tlnses for distribution to stockholders . ld complaints of traffic managers that hditic T from week to week a.,
 
 2 thSA Snrovement. Even on the - the assumed success necessary condition to fFe stock market
 N2Qduce, the im-