Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-05-18
Securities Go Skyward and
Business Increases.
Leaders Of Movement Seem to
Have Plenty Of Cash.
Rise Understood to Be a harbinger
Of Future Good.

curities advanced last week with grow
ing impetus and increasing volume OF
transactions, the total sales on Ihurs-
day rising to the largest of any day
since last summer, before the financial
crisis developed. The persistence OF
the advance and its freedom from IN
nuencc or check by events seeming
unfavorablc to values gave it impress
siveness and had the effect of convert
ing growing number of skeptlcs In
the professional operating class, VINO
had contested the advance by short
sales at various Stages and had been
forced repeatedly to cover at loss.
The abandonment of the opposition by
this class and their turn to the long
side had not little to do with the in
creased animation and buoyancy of the
market.
The success with which all obstacles
were overcome and prices agresslVeiy
advanced from the inception of the
present movement. has been convincing
proof of the wide resources command
ed by the leaders of the movement.
The suspicion of manipulatlve origin
for the rise in prices with the purpose
of creating a semblance of improve
ment where the reality Gid not exist
served to hold aloof from the market
most of the general public which gen.
orally joins in an important market
movement. The confidence and con-
stancy with which the movement is
pursued had growing influence on
sentiment last week and had the IN
creasing effect of causing behet IN
the satisfaction thus expressed on the
part of great capitalists with the de-
gree of Improvement in affairs. In the
department of the money market TINS
Improvement was clearly enough per-
ceptible. Fer the easy money market
to further the success Of financial plans
of corporations, however, there was
necessary the addition Of demon
stration of confidence in the security
of values The rise in the stock mar
ket has operated as such demonstra-
ton The skepticism with which 1t
was accepted at first was due to the
conflicting evidence Of news OF afalfs
in general. This discrepancy con-
tinued last week in spite Of the grow
ing force of the rising stock market
tide.
That prices of securities continued to
rise in spite of unfavor2ble lndustflal
and commercial adviceS was assumed
to mean that promising signs could
be discerned beyond this immediate
situation that prompted the large COM
mitmentS to holdings of stocks when
were being made from Gay to day in
the stock market AS vcritable
speculative medium, which the stock
market showed undoubtedly it is, fu-
ture and not present conditions are eX-
pccted TO be outlined in its action. The
comprehensive and aggressive upilft OF
prices must be read in this light and as
representing views that pierce beyond
present that includes the largest
surplus of idle freight cars in the his
tory of the country, an iron market
with but slight STRINGS from con-
dition of stagnatiOn, Il shrinkage IN
bank clearings that is an unmistake-
able index of commercial quiet, rail-
road earnings that reflect a struggle
to conserve margin over expenses
for distribution to stockholders 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 what is a necessary
condition to the revival which the
stock market movements seems to pre-
dict. the Immediate events of the week
were not inspiring. the unfavorable
weather portcnding some decline in
conditions, which is not, however, be-
lieved to be serious.
The great abundance of money mar
ket resources has not been at all af-
fectcd by the important Withdrawals
of government deposits by the treasury,
by the resumption of gold exports on a
liberal scale and by various financing
measures through syndicates incident
to the new issues of securities. The
relaxing tendency of money markets
is the rule not only here, but abroad,
where an early satisfaction of all de-
mands upon us seems to be indicated.