The morning journal-courier., 1908-05-25
PEo 3! r. 8!
FINANCIAL REVIEW
Large Profit Taking Sales Due
to Demonstration of Bet.
ter Conditions.
OVER MILLION MARK DAILY
Enlarged Demand for Iron Accented
as Proof of Positive I'm
provement

News of financial affairs was ac-
cepted as showing improving condi-
tons and the action of the securities
market. although somewhat unsettled
and breaking violently at the end
was not interpreted as belieiag this
acceptance. There has been heavy
accumulation of stocks for a consld-
cradle preceding period on the as
sumption that the then existing pros
tration of affairs might be assumed TO
represent the turn OF the tide. with
betterment to follow. With the DEM
onstration of the actual improvement
there was large selling to take profits
by spectators who had bought prev
iously. At the same time more be-
lated demand for securities was in
evidence which served as a favorable
medium for digestion of speculative
profits. The result was a broad, ac-
tive and varied market with more
signs of animation and interest than
has been seen in the stock market for
over a year. The daily average of
sales at the stock exchange has been
we'll over million shares and We'd
nesday's total of 1,40O was the largest
single days business transacted since
the days of the silent panic" in
March of 1907.
Probably the most decisive factor In
forming the conviction of a positive
improvement In BUSINESS was the en-
larged demand for iron. Price con-
cessions in that commodity had be-
come general and without any formal
abandonment of The tacit agreement
amongst producers to maintain prices.
Placing of orders on growing scale
was the consequence. Iron is pro-
verbally the great basic industry and
the speculative markets accept It's ac-
ton as an almost infallible index of
the future course Of trade In general
Advices from other mercantile lines
were at the same time more encour-
aging than for a long time past and
buyers were reported to be placing or
ders with more confidence than has
beer shown since before the panic of
last October. Confidence In the pres
ent promise Of the crops remained I'M
impaired after taxing account Of the
evidence of some deterioration to be
gathered from the reports of weather
conditions over the crop belt. In
view of the shading of iron prices
much attention conferred on the weeks
conferences of steel men, which Il was
nynapfn6 might 1aaida N al, 10
policy in marketing finished products.
The apparent harmony of the decision
against this step, reported after the
meetings were over, seemed to he ac-
cepted with approval by operators In
stocks, who continued to advance
prices afterwards.
The weeks active speculation In Sc
curities was characterized by a large
number Of rumors pointing to concert
ed measures among groups of power
full capitalists, calculated to enhance
the value Of their properties. Much
was heard Of a supposed approach
ment between the Gould, Hartman
and Rockefeller interests and these re-
ports appealed strongly to the specua-
tive imagination, although they re-
manned without authentic verifcation.
The effect on prices was the more pro-
nounced as differences We're drawn of
assurance Of financial resources which
would extricate important corporations
from threatened embarrassment in
carrying out projects to which they
were committed. Some of the fnanc-
ing now being accomplished is on terms
which show how acute was the crisis
from which an issue is thus secured.
Note issues IN this class, placed at
arduous rates of interest and expen-
sive bankers commissions secured by
tying up an imposing array Of collat-
eral, represent, nevertheless relative
improvement in conditions as affording
q rescue from what was feared at one
time as certain bankruptcy.
One Of the assumptions dwelt upon
in the weeks speculation was of de-
cline in the vigor of the pursuit of cor
porations. Citations of court decis-
ions, the course Of the legislative pro-
grams at Washington and at state cap
itals and views of the political pros
pect were the material from which this
assumption was formed. The extent
Of its influence was made apparent by
the acute weakness which followed the
announcement OF the filing Of the gov
eminent suit against the New Haven.
Further decline in interest rates was
q feature Of the weeks markets As
this occurred in spite Of further large
exports Of gold and preparations for
repayment to the United States treas
ury OF another installment of $4,000, 900
of government deposits, confidence was
felt that tranquil money markets for
an indefinite period were to be relied
upon. This condition is the substantial
underlying basis for the recent uplift-
ing stocks the accumulation of idle
reserves in the banks offering attrac-
tive inducement for taking out funds
at low interest rates for holding of Sc
curities. The comparative high rate of
return on many securities compared
with the ruling interest rates added to
the attraction OF the operation and was
the most powerful fostering factor in
The speculative movement.