Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-06-08
All the Markets
Are More Lively.

New York, June THE early
strength and the later unsettlement in
the securities market last week were
attributed to tn elimination of some of
the influences relied on to advance
prices and the development of some
mere doubtful factors in the situation.
The conclusion of the session of Con-
gross with the enactment of an emer-
gency currency law was made the
occasion for quite demonstration in
the stock market
The adjournment of Congress is re-
garded, from the point of view of one
element, as a promise of surcease from
threatened activities which are viewed
with more or less nervous apprehen-
sion by security holders. The reports
later in the week, of further prosecu-
ton in contemplation against the
Standard Oil Co and of possible fines
running to a maximum even greater
than those in the former suits, caused
a revulsion of sentiment in the minds
of spectators who had assumed pc
Rod of exemption for corporations.
This feeling was responsible in part
for the sharp reaction in prices. There
was perceptible, also, some revision OF
opinion of the effects to be looked for
from the operation of new currency
law.
Some of the earlier bullish enthusi-
asm in the stock market was associat-
ed with the demonstration in some
parts of the commercial and industrial
world Of profeSsed confidence in the
early resumption of prospective ac-
tivity. The placing of some large or
ders in the St. Louis district and the
enlargement of production amongst
the New England textile mills We're
effective adds to this demonstration. 1t
was counteracted sharply by the an
nounccment of a cut in the price OF
steel bars which was given formal
sanction by the United States Steel
Corporation official protestations of
the intended strict limitation of this
reduction did not allay anxiety over
the possible extension Of the move
ment generally to all lines of products.
\ connection is assumed between the
policy of attempted maintenance of
prices in the steel trade and of adj
vance Of freight rates by the railroads
and the hoped for avoidance of cuts
in wages in those fields.
The developments in the steel trade
aroused some fears that wage con-
troversies would be the outcome in
both fields.
Outside the element of professional
and habituaI operations it is difficult
to realize how large part the expect
ed Union Pacific bond issue has played
in the movement of the securities mar
ket. Large operations have been based
constantly upon the suppOsition that
the friends of the Union Pacific prop
erty primarily and bankers and cap
italists moved by similar motives have
fostcred and protected the upward
movement of prices to help on the de-
mand for projected new capital issues.
The action Of the market from time to
time seemed to show the powerful
control exercised by these forces.
With the conclusion of the Union Pa
cific transaction there arose misgiv-
ings over the future action of the mar
ket.
Conditions in the money market
moved steadily towards greater ease,
both here and abroad. The reduction
in the official discount rate of the I'M
perial Bank of Germany marked the
iiral response to the relaxing tendcn-
cy where it was most belated. Money
on call in New York loan in per cent.
for time loans also were shaded. For
eign exchange rates, nevertheless.
yielded in New York and the end of
the gold export movement was be-
iieVcd to be reached. There was grow
ing confidence, also in the crop prom
icn n ,1,t,
weather conditions through the week