The morning journal-courier., 1908-11-16
FINANCIAL REVIEW
Professional Operators Cau- tious, Fearing Top Heavy
 Speculative Position
$5,oo0,000 DAILY SALES
Many News Developments of Both Insettling and Confidence
 Making

The strength and depth of the senti- mcnt of hopefulness and confidence which has permeated the financial and business world were Illustrated In the great variety and activity of the stock market last week The average of the days transactions at the New York stock exchange rose to over million and half shares of stocks. and in bonds the par value of the average daily transactions rose to near S5,00o
 o0o The miscellaneous sources of the new participation in the market were indicated by the freedom from the usual technical rules of a professional market, which is likely to be held with, in the limitations of the more re- srricted resources employed in 1t. In last weeks market, on the contrary, the large general absorption of securi- t went on at all stages of the price movement and without seeming dis turbance from the occasional great ir- regularity of price movement and sharp setbaeks The more practiced professional operators in stocks showed growing caution in their operations and were quick to take alarm al one or two incidents of the week which 1t was feared might prove the determin- ing factor in overturnlng a possibly top-heavy speculative position and bringing on the violent reaction with which rapid speculative advances usually culminate The weariness of this experienced class was emphasized by the evidence of artificial stimula- ton for the speculation at some points and the fear that excess of this kind would bring early exhaustion and re- lapse With all these restraining fac tors acting as q curb, the undertaking progress of the buying of securities and the sustained strength of the under tone of the market were douhly i'm pressive. Two incidents were of espe- cial influence in causing the reaction ary movements which characterized the market On Monday there was q heavy unloading of securities by tho more timid on account of the decision by a United states court in favor of the government contention for the un- lawfuness of the formation of tho American Tobacco company. The legal Interpretation there given Of the scope of the antitrust law showed SO drastic an application to practically all the modern corporation formations that fresh alarm on the part of capital was feared For moment the financial world saw the possibility of such a course of consequence as followed in the wake of the Trans Missouri freight decision, the dissolution m the Trunk Line association and the Northern Se- curitles merger decision
 The quick passing Of the influence of this episode was due to the conviction, strongly held in all quarte's of the fiu- aneal world that the late elections showed a revuision of publia sentmnn; in the country from the extreme hos tilltl towards corporations ard de- termnation to conserve T interests of capital for it's cncouragl ment Tn re- newed employment and outlay This conviction was indicated alao in the confident predictions that were current tNai an amendment of the Sherman ant'-tlust law was likely vhich would liatil it's application to merely unrea- srrHLlp circumstances in restraint Of trade Tnc Impression of the curbins os antt.corporation forces was height encd by the refusal of the Tinted Stut"- couri on appeal to entertain the governments motion against the de- cision setting aside the S290O0,0OO fnc O. the standard oil company. The second incident by resisting which thu market demonstrated its underlying strength was the failure of the very positive rumors that the Union PacihD and the Southern Pacific dividends were to be increased The furious spec ulation cngcndcred in these stocks bl these false rrmors and the violent re. action In them which followed in tho dislroval of tho rumors had it's mo lnantary wnsettlIng effect on the whol' market, but its rccuperatiyo power wal again strikingly demonstrated. Th' speculative turmoil in the stock mar ket Is backed by the continuous publi cation or lacts SnoWlnG the reSunlpLloi of business and industrial activity II all directions, Expert authorities II the different trades, while detailing au thentic facts of the revival, quite gen orally give voice to warnings of eXag geration in the more generally circulat ed reports Of the rate of the improve ment The speculation has refused t be bridled by these warnings and ha' continued stil to afford means for sus taining the speculation. Increased TO ouirements from the trade revival anr from large new capital Rotations am government loans are making their in nuence felt in the time money marke where rates have risen and lender have grown more eXigent In thei terms and loas disposed to put oil funds at present rates The quietlnl of foreign politics has relieved the SC ourities from one source of pressur and the suffering of the domesti money markets has carried down tn foreign exchange rate,