Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-09-17
Ease of Money Market Has Un-
duly Stimulated Specula-
ton.
PRICES WERE READJUSTlD
Hopes 81 BumpeR Grain Crops BLASTED
by the Governments September
First Estimntes-Lnck Of Inn
provcmcnt in Raiiroad
Earnings the Cnuse.

| New York. Sept. 13-rast weeks on.
erations In the stock market still show.
| cd the stimulating effect of the redun.
dant condition of the money market ir
| further rise In prices In the early part
of the week. The sharp reaction which
| accompanied the small furry In the cal
| money market of the latter part of the
week was striking testimony to the
important part played ir the speculative
| position by tho ease Of the money mar
kct. The abundance OF funds which
could he procured on call at one per
| cent. or under constituted a strang fac
tor for taking on Of stock holdings and
the making up of prices The operations
to this end have been frankly ascribed
| to = limited circle of very wealthy can
| italists The inference from this condi-
| ton would be that the active dealings
on the stock exchange were not effect
ing any widespread distribution of
stocks. There is equal agreement, on
the other hand. that substantial, hold
ers of stocks have shown little d!sposi-
tho attractive level to which prices
have been lifted.
The REIMBURSEMENT Of prices was ;ust,-
low interest for money compared with
the return of securities and BY the re.
Vival In business activity.
That the money condition u.,
outrunning the business improve
ment as dominant influence on the
STOCK market has been a growing
suspicion which is emphasized by. the
revision called for OF some of the earlier
estimates of the latter factor. The hopes
at one time entertained Of bumper grain
crops have disappeared in face OF the
governments estimate Of the September
LIST condition published last week. The
promise Of good average crops and at
profitable prices. which is now In pros
pect does not alter the necessity for
speculative reimbursement of earlier and
more snnguine estimates. The moderate
rate OF recupcration IN the iron and steel
trade and the lack OF evidence that
railroad earnings are being restored are
Of like admonitory influence upon excess
of speculative enthusiasm
The opinion Of the small extent to
which investment holdin-~ of stocks are
being marketed finds an exception in the
case Of foreign holdings. OF which free
offerings are coming home This is be.
lieved to form an important element in
the persistent strength of the foreign
exchange market which brought re-
vival of talk of possible gold exports
during the week.
Preparations for coming govern
ment loans are prompting the strength
cninE of the central banks abroad and
the lifting OF money rates which this
entails tends to force securities into
the American market for sale from
foreign quarters. Demands from the
interior for currency to move the
crops. while helatcd and still light.
are beginning to make some inroad on
New York banking reserves The
of the foreign exchange mar
ket AT this season. with all these
things considered leaves something to
be explained. Some influence Is duo
to the state OF practical imitation Of
bank note issues. Not more than 81
5000 Of tho $4,000. 900 sudden ex-
Iponsion in bank notes which followed
the panic last fall has been retired, in
spite OF the redundant money condi-
tions which have developed since
The automatic pressure for retirement
Is seen In the enormous current re-
demptiors Of these notes by presenta-
ton at the treasury.