The Montgomery advertiser., 1908-06-22
FINANCIAL REVIEW.

New York, June 21.--The prominence Of political subjects last week kept at tention in the financial district, as well as elsewhere, focused on that point
 The most notable effect perceptible in securities was the depressiofi Of all large and important activities and tIs adoption of q waiting attitude on the part of the larger capital interests. Dealings were made up of professional operations and those of the smaller class, and the price movement, in con sequence, was inclined to turn often within restricted range indicating the tentative nature Of the transac- tions and their failure to bring out any substantial response. such as would give them power of extension. Pro- fessional sentiment was sensitive to the hourly news from the transactions of the republican convention at Chicago and vaciliated as the advices were gression in pursuit of corporation abnses or of restraint on more radical tendencies in that direction.
 The trivial character of the deal ings caused doubt whether any deep founded views of substantial property interests were finding. reflection in the market and the long list of absentees from the financial district of prominent figures in the banking, financial and railroad world helped to keep alive this opinion The demand for securities was unimportant at all times nor was there any notable selling to give light on the convictions of securities hold CTS.
 The waiting policy of the speculation was confirmed by the balancing of some oontending features in the general sit- uation of affairs. While some of the immediate conditions were of an un- cheerful import, the undertone was one of confidence in future improvement
 Unfavorable weather conditions in a part of the winter wheat belt was taken due notice of. but the opinion of authorities in the grain trade was that the promise of the yield was not. as yet, materially prejudiced, served as an offset Railroad trafiic officials gave voice to their confidence in crop pros poets and the ultimate favorable in- f1uence to be expected on the freight movement and on general business, even while admitting the present con traction of their traffic. Railroad earn ings reports, also gave strong testi- mony to this contraction, the Baltimore and Ohio's shrinkage to less than halr those for last year in its May net earn ings making notable example. There were the passing of dividends on the Cleveland, Cincinnati, Chicago and St. Louis, the Lake Erie and Western pre- ferred and the Republic preferred steel stocks and the reduction of the Louis vile and Nashville dividend which had to be digested. Trade journals of re- cognized authority in the Iron and steel trade gave candid expression to the belief that the cut in prices of steel products had not revived the demand in those lines Further reductions were believed to be probable and wage adjustments are looked for in conse- quence. The course of railroad earn NHn followed by some of the railroad com panies and the opposition to proposed advances in freight rates awaken fears that wage reductions are foreshadow- ed in that field of industry as well.
 There was a continued downpour or money to the banking reserve centers of the world in which New York fully shared. The reduction of the official discount rate of the German Imperial Bank marked the extension of this in- fluence to the point where money stringency has persisted the longest.
 This Is an unusual phenomenon fol- lowing such a financial upheaval as that of last fall The variant from the us- ual order Is found in the persistent demand of Paris and Berlin for gold. about which some mystery attaches. The continued outgo of gold from New York, however, has not altered the easy tone of the money market and the con fdence in it's continuance, as reflected in concessions in over the year inter- est rates. Special requirements. such as an increase on July 1, in the New York Trust companies reserve require ment which will call for approximately $20. 900, 900, and an expected further recall of the United States treasury de- posits with the banks, have equally failed to disturb conditions in the money product. It is notable that the bond market has fiattened out in spite of the easy state of the money mar ket.
 This Is attributed to the recent large supply of new issues which has been entered into the bond market. with tho effect of taking the edge of of the in- vestment demand