The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-05-18
FINANCIAL REVIEW
Persistent Advance in Prices
and Growing Volume the
Weeks Feature.
MANY TURN TO LONG SIDE
Suspicion of NIanlpulative Origin of
Rise Kept Public at a Dis
lance.

Prices Of securities advanced last
week with growing impetus and in
creasng volume of transactions. the
total sales on Thursday rising to the
largest of any day since last summer.
before the financial crisis developed
The persistence of the advance and its
freedom from influence or check by
events seeming unfavorable to values
gave 1t impressiyeness and had the eff
feet Of converting growing number
OF skeptics in the professional operat-
ing class, who had contested the ad-
vance by short sales at various stages
and had been forced repeatedly to COW
er at loss. The abandonment OF the
opposition by this class and their turn
to the long side had not little to do
with the increased animation and
buoyancy Of the market. The success
with which all obstacles were over
come and prices aggressively advanced
from the inception of the 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
lists whose influence commands the
resources of the most powerful group
of capitalists in the country. The sus-
piclon Of manipulatlve origin for the
rico tn, ,arinpg tritn no If
ating 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. Tho confidence and constancy
with which the movement Is pursued
had growing influence on sentiment last
week and had the increasing effect of
causing belief In the satisfaction thus
Impressed on the part of great capt
talists with the degree Of Improvement
in affairs In the department of the
money market this improvement was
clearly enough perceptible. For the
easy smoney market to further the
success of financial plans Of corpora
tions, however, there was necessary
the addition of demonstration of con-
fidence In the security OF values. The
rise in the stock market has operated
as such a demonstration. The skeptl-
cism with which 1t was accepted at
first was due to the conflicting evil
dences of news Of affairs In general.
This discrepancy continued last week
in spite Of the growing force Of the
rising stock market tide That prices
of securities continued to rise In spite
of unfavorable industrial and CONNER
cial advices was assumed TO mean that
promising signs could be discerned be-
You'd this immediate situation that
prompted the large commitments to
holdings of stocks which were being
made from day to day In the stock
market. For instance, the declared
purpose of the principal allied interests
In the iron industry to hold prices Of
that great basic commodity was evil
IDENTIFY quietly abandoned and practical
" an open market for iron established
While conditions there are greatly set
tied and no changes are reported In
the demand for finished products 1t Is
conceivable that the way to improve
ment may be opened by the new de-
mand for iron brought out by the con-
oessions. The same holds true of the
copper industry, where successive re-
auctions In price have been of dscour-
aging effect, which necessarily repre-
sentns progress towards the stage Of
stability where demand will overtake
supply and revival Of the 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 sup
ply Of resources for resumption Of
buying and construction.
As a veritable speculative medium
which the stock market undoubtedly
is, future and not present conditions
are expected to be outlined In its ac-
ton The comprehensive and aggres-
sive uplift Of prices must be read in
this light and as representing views
that pierce beyond present that In
cludes the largest surplus Of idle
freight cars In the history of the coun-
try, an iron market with but slight
STRINGS from q condition Of stagna-
ton a shrinkage in bank clearings that
is an unmistakable index Of CONNER
eial quiet, railroad earnings that re-
fleet struggle to conserve margin
over expenses for distribution to stock
holders and complaints from traffic
managers that conditions from week to
week are without Improvement. Even
on the side Of the crops the assumed
success of which is a necessary condi-
ton to the revival which the stock
market movement seems to predict the
immediate events Of the week were not
inspiring, the unfavorable weather por-
tending some decline In condition
which is not, however, believed to be
serious.
The great abundance Of money mar.
ket resources has not been at all eff
fected by the important Withdrawals
Of government deposits by the treas
ury, by the resumption of gold exports
on q liberal scale and by various
financing measures through syndlcates
incident to the new Issue of securities
The relaxing tendency of money mar
kets Is the rule not only here but
abroad where an early satisfaction OF
all demands upon us seems to be indi'
Gated
ncxHE V,DyrnC