Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-01-09
Financial Interests Look to the
Future with Feelings of Hope
and Confidence.
YEAR END DEMANDS NET
Rate for Call Money Did Not Go So
High Az in Previous Years-De-
mand for High Grade Mercan-
tile Paper Renewed-Cur.
rency Flows into n. Y.

New York, Jan. 5.-The opening Of the
new year sees disposition reflected in
the financial markets to turn from the
contemplation OF mournful yesterday and
TO look forward with hope and confidence
to the future. The conviction is firmly
based that decided Improvement is ahead.
but this conviction has been tempered by
some anxiety over a possible remenant
OF unpleasant consequences OF the
financial crisis yet to be gone through
special field of uneas!ness was the
provision for the annual settlements in
the money markets, which were I'M
usually heavy while the resources OF
the money market, although rapidly i'm
proving. were stu much impaired The
senoothness with which the turn of the
year was effected went far to encourage
sentiment and to establish the confidence
that steady Improvement In the financial
position was to be expected henceforward.
The coll money rate did not get higher
than % per cent. which compares with
maximum of 6 per cent. in the cor
responding week OF last year and l2a per
rent in the year preceding
Still more significant of the growing
Improvement of the position was the
rapid dwindlng and disappearance Of the
first business day OF the New Year So
long as the premium persisted an In
surmountabe obstacle remained to the
ACCOMPLISHMENT of normal banking
position. This development led to the
withdrawal of all New York bids for
the large consignment of South African
gold which arrived In the London mar
ket on Monday. The London market was
60 far treasured by this development
that rapid decline ensued in the Lon
don discount rate and the Bank of Eng
land was constrained on Thursday to
mark down it's official discount rate
from seven per cent. to six per cent. In
order to avoid losing touch with the
money market. The seven per cent.
bank rate was the signal of continued
dstrust In the outside world of the
American position and its abandonment
marks the return of faith in the passing
of our crisis.
In New York additional funds have ap-
peared in the time loan market and bust
ness in that department has taken on
some degree Of activity. although inter
est rates continue high. Growing demand
for high grade mercantile paper also |
offers promise of relief from one of the
most threatening sources Of embarrass-
ment to come, growing out Of the heavy
maturities falling due in that department
from time to time. The shrinkag, In
buying power which has gone with the
financial upheaval, the slowness OF mer-
rantile collections and the stringency Of
The money market, which offered some
email prospect OF adequate accommoda-
ton for the extension of needed credits,
threatened a combination Of circum-
stances from which disastrous conse-
dad yaAt arto In,
New York are more hopeful OF
needed accommodation being forthcom-
Ing to facilitate the process of liquida-
ton which Is a recognized necessity to
some extent. in commercial affairs and
which 1t is now hoped may be conduct
ed with deliberaton and good order. The
publication OF the bank statement at the
close Of the week disclosed the free in
flow OF currency to New York for the
week. This development Is OF the ut
most Importance as marking the passing
Of the feeling OF dstrust of the New
York position and promising a rapid re-
establishment of the normal banking
position.
1t thus happens that the financial mar
kets have been disposed to ignore some
Immediately unfavorable factors in af-
fairs. cheored by the Frightening Hnan-
'''' fA'SPNN' Hp'h''6 cAdHpIc VI tHlS
was afforded In the stock market Of the
hrst day of the new year. There con-
verged on this market the news OF the
appointment of receiver for the Sea-
board Air Line railway and the reports
from Washington of an intended suit
by the government to compel the dis
solution OF Hartman railroad merger
The market wavered under this shock.
but the effect was temporary and
strong recovery ensued before the end
OF the day. The course of railroad
earnings reported was another restrain
Ing factor on immodere,e enthusiasm
over values. Several OF the great rail-
road systems, including notably the
Atchison and the Pennsylvania, showed
heavy inroad on last years level of
net earnings In the return for November
owing to the heavy expansion of opera
| ling expenses. Railroad traffic officials
In reporting on the more recent course
OF traffic. make candid ACKNOWLEDGE
| ment OF the rapid shrinknge In the move
| ment Of the merchandise Of all doscrip-
! lions except grain, and OF their inability
to discern a probable source Of any early
| improvement.
The professional speculative continent
about the stock exchange harbors a GER
tain amount Of suspicion Of the rise IN
prices as being due possibly to fostering
measures by bankers and capitalists OF
large resources with the design to afford
a more favorable basis for the compile
tion OF some desired liquidation when the
expected relaxation In the money market
may stimulate some general demand for
securities
The bond market Is scanned with at
tention and interest from day to day TO