Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-06-09
FINANCE AND
COMMERCE


New York. June S.--The long per-
sisttn@ rumors OF a general cut in the
price of steel products gained more
authoritative form today and it came
to be generally believed during the
days session of the stock exchange
that substantial reductions would be
announced Immediately for all lines
except steel rails The policy of the
steel trade in holding prices at the
present level has been the subject Of
varying criticism ever since it was
formulated ana the conviction is gen
eral that the marking down of prices
will be the most effective manner of
reviving activity in the trade. The
analogy of the textile trade is the fav- (
orite one to reinforce this argument |
where curtailment of production. wage
reimbursement and price reductions
have had the consequence of revived
demand and large resumption Of pro
ductVe activity The misgiVings over
the new ste9 contemplated by the steel
trade and which we're reflected in the
depression of the days stock market
have to do more with the delay in its
adoption than with a question of its
dcSrability. The good effects which
might be felt from the Interior results
to be expected from the price cut are
likely to be ObsCured, in part at least
by the record of protest coming con-
stantly from official sources since ru-
mors first gained currency of the In
tentiOn TO cut prices. These official
utterances having taken the form OIL
protestations that price reductions
could not be hoped to revive demand
and that customers were not DESTROYS
Of concessions, there is left now the |
shadow of the doubts thus implied of
the efficiency Of the statement. The
fear that the wage adjustment which
must follow the price division way
lead to controversy in the midst off
the national political campaign is an
additional factor initiating against the
probable effect the market has had
in this incident Attention was at
tracted to the subject of new capt
tai issues by the figures of the heavy
rotations for May and the additional
issues in early contemplation. The may
total of $l66,975,O 900 now stock and
bonds while somewhat lower than
April, is far in excess of the issues
of last year.
The total of $722,652,154, to which
the new issues since the first of the
year have risen, represent an unpre
cedented figure for that period. The
proportion Of this new financing which !
is devoted to refundnR can not be
ascertained, but the rapid rate of eX-
pansion of capital liabilities at per
iod Of business contraction which nat |
urallY limits the rate Of capital re
plcnishment. commands the attention
Of bankers and investors. The addi-
tOnal security proposed for the Union
Pacific bond issue was regarded asI
significant Of the taste Of investors at
this time in that direction as much
as for the rate OF return offered. The
understanding that the Union Pacific
bonds would not be offered for public
subscription until the middle Of the /
week kept open the question of what |
would be the treatment of the market !
by the forces which have sought to
pave the way for this hOtation when It /
Is fairly out of the way. An excel |
lent effect was produced by the report |
Of further decrease in the number Of
lille freight cars in the two weeks end |
ing May n, which was offered by the
American Railway association, the re
duction Of 2.2O5 bringing the number
down to 3819O4 compared with a
maximum Of 413,33S reported on April
90.
The early strength in stocks was
connected with this report The later
recovery was due to the government
crop report and its effect on the wheat