Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-06-01
Profit Takers Find Their
Margins Rather Narrow.
Bear Raids Help Stock Prices
on Their Downward Way.
Authorities on Grain Retain Con.
fidence In Crop Prospect.

New York, May 31.-The speculative
outlook became somewhat unsettled
last week by reason of the confused
factors in the sharp reaction Which set
in in the securities market. 1t was
clear that this was due in large part
to selling to take profits by holders
who had bought in anticipation of
more favorable conditions in affairs
and who saw evidence of improvement
which they considered made a favora-
BILE opportunity for realizing on their
holdings. The opportunity proved less
favorable than was hoped for, the i'm
provelnent in business having failed
to inspire so active a demand for Sc
curitics as the previous speculative
buyers had expected.
The definite reactionary tendency of
the market stimulated the exertions of
the bear party and their attacks on
values were an important factor in
forcing prices downwards, while their
occasional purchases to cover shorts
and take profits served as checks to
the fall from time to time. The declin-
ing tendency of prices of securities had
the effect, as it unfailingly does, of
tincturing the views in the financial
district over the prospect of affairs
and gave rise to some surmiseS of
fresh coming reaction beyond the pre-
cincts Of Wall street itself despite of
the evidence of present betterment and
revival.
Reports from mechanical sources re-
fected some Improvement in demand
although advices in this field showed
II
probable movement of textile goods
as a result of the price reductions
which have been enforced.
The influence from the condition of
the crops was unfavorable. Technical
conditions tin the cereal markets aid
ed in this result, the operations of a
corner in both corn and wheat magnl-
flying the price movement in these
commodities and giving more force to
reports of crop damage. Authorities in
the grain trades, however maintained
their confidence in the crop prospect.
In the financial situation proper
there came into view again the mixed
conditions due to the cheapening of
money supplies, the improved facilities
for borrowers, and the obstacles of i'm
paired credit to the desires of some
of the borrowers. The announcement
that the Chicago, Burlington & Quincy
directors had authorized a new bond
issue of the unprecedented volume of
$500 OOO. 900 and the $1,000 900 of these
bonds had been sold on favorable terms
came in one day without any previous
limitations of such Il transaction. The
inference was strong of an abundance
of capital forthcoming for a high grade
of well secured securities. On the
other hand terms of sale of some note
issues of enterprises of lower credit
and the comprehensive lightness of the
demand for such issues indicated a
line of limitation for the relief which
the abundant money supplies might
afford.
The causes of the continued inflow
of money into banking reserves and
the impaired credit of inchoate cor
poration enterprises find the same
source in the contraction and depres-
sion which were the effects of the fin
ancial crisis. The indications the lat
ter part of the week that there re-
manned some wreckage to be cleared
away from the financial fabric in the
adjustment of balancing forces to make
way for it free resumption of health
full functions was not relished in the
financial district