The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-09-28
FINANCIAL REVIEW
Political Developments Weeks
Strongest Factor in
Market.
PRICES EXCESSIVELY HIGH
Artificial Character OF Market Re-
sponsible for Trmultuous
Trading.

The stock market last week was
called a political market The violent
mutations of sentiment indicated by
the rapid changes in the current OF
the price fluctuations found no ade-
uate explanation 1t is true, In the i'm
mediate developments affecting actual
values OF securities There was some
scepticism, nevertheless, over the like
lhood OF such sudden changes in po-
litical views as seemed TO be shown
by the tumultuous dealings In the
stock market. For this reason, deeper
causes were sought for the action Of
prices.
The political view OF the market
had on its side the undoubted fact
that the financial world has laid much
stress. for some time past on the as
fumption that the public feeling on
hostility towards the great corpora
tons was subsiding. This assump-
ton carried with It the hope that gov
eminent measures of restriction and
regulation of corporation affairs were
likely to be moderated. The feeling
VI StCuIllN llluS StNpiS W
have received a shock by the later
course OF the political campaign. The
hurting back and forth of accusations
and recriminations in the political
canvass and the emulation displayed
by the political parties to disavow all
connection with the great corporations
awakened renewed anxiety In the fin
ancial district of revival Of attacks
upon them There was a general and
commonly expressed conviction
amongst observers of the stock that
prices of securities had been carried to
excessive heights. This conviction
found utterance in advices of many
commission houses to their clients. It
was pointed out from these sources
that the rise had been largely artificial
in the lack of general public buying
to cause 1t.
The operations were ascrbed almost
wholly to parties of wealthy capitalists
melted by the large supplies of cheap
money available by the desire to fos-
ter returning confidence In the business
prospect and to make good market
for new Rotations of capital. The belief
thus founded in the responsibility In
combinations of capitalists for the high
level left prices without any sustain
ing force when those capitalists seemed
to be abandoning their position. Prices
therefore came down with crash on
Monday and Tuesday. The violent rally
came when signs appeared that the
same influential interests were once
more buying stocks
The belief that the advance had out
run the rate Of Improvement In bust
ness affairs was plainly a factor In
the reaction also This was emphasized
by the moderate progress reported In
trade and railroad traffic. The reports
of railroad earnings, while making less
unfavorable comparisons with last
year, are still OF slow growth. Some de-
terioration In the crops from the ear
1ier promise Is allowed for, with pos
sible frost damage to corn and cotton
still to be reckoned with The shutting
down of English cotton mills threatens
an important curtailment OF the mar
ket for the great American export
staple and this prospect has had some
influence in deranging the foreign ex-
change market. The strength In that
market was connected with the prob
able short supply Of cotton bills Money
In the local market continues easy and
promises to remain so,