Omaha daily bee., 1908-03-16
Many Iron and Steel Mills Ar
Resuming Work.
MONEY RATES ARE DECLINING
Foreign Funds Are Sent YOrl
for Investment.
PRICES OF STOCKS
Upward Movement is Made Fea =
by the Practical Conclusion o !.
Llquiaasioa-short Interest
~ Dtnadvantage.

NEW YORK. March lb.-The prevailing
oninion reflected III the financial district
lsrt week was OF increased confidence
thst the condition Of affairs was mend
tre Evidences were not universal that
contraction had run its course. but from
fields that were considered most sig
nificant the signs Of betterment were
accepted as testimony that the situation
was shaping towards Improvement Fig-
ures complied by the American Railway
association Of the number OF idle freight
cars showed a progressive reduction 1or
the last two fortnightly returns. These
Figures were highiy influential in shap-
ing opinion on the general situation
Scattering reports Of resumption Of work
by factories which had suspended or
largely reduced operations during the
depth Of the depression. although mixed
with evidence Of further curtailment In
other directions, were a cheering factor.
Especially in the iron ard steel trade the
reports OF reOpenings were notable A
recovery from the price OF copper, which
had been falling since the decision 70 re-
open the Butte copper production. gave
some reassarance to the confidence in i'm
provement in that trade, which was ex-
pressed in the reopening in Montana
Money Rates Decline.
The declining money rates here and
abroad were an element In the situation
and the discrepancy In money rates here
and In Europe induced some investment
, OF foreign funds In New York This
was mostly confined to high-grade mort
gage securities and 70 some takings Of
mercantile paper
Buying for foreign account was per-
oeptible. however, in the stock market
and the presence In foreign capitals q
some of the most Influential American
financiers revived the supposition that
foreign buying Of stocks were not unre-
lated TO this circumstance. The easing
Of the money market and the stirring
Of activity IN stocks brought into con-
sideration the subject OF financial needs
Of the great corporations which remain
unsuppiied and which insure attempts 10
float new issues OF securities IN the near
future me market for existing bonds
WAS studied TO discern a reflection Of this
movement In the general bond market but
resulted somewhat disappointing. The
bond market lacked breadth and the prices
at which seasoned bonds are stiu sell
ing DO not make propitious condition
for the offering OF new securities.
stock Market Rises.
The upward movement inaugurated in
the stock market was under some suspic-
Ion Of being fostered by the larger banking
and financial powers for the purpose OF
preparing the way for contemplated new Is
sues This did not deprive the movement
OF a cheering influence on financial senti-
ment. The advance in stocks was made
feasible By the evident completion Of liQul-
oAtion and consequent scarcity OF stocks
offering, which removed obstacles 10 the
operations for an advance. An obstinate
short interest also was left at a disadvant-
age BY the cessation OF liquidation. and the
necessity OF this element offered a bar for
raising prices with assurance that some
demand would be met on which to resell
al profit Outside OF this demand from
the uncovered shorts the absorption cf
stocks by outsiders and investors was re-
ported small
The stimulating effect OF the rise IN
stocks was unabated up 10 the close OF
the week. Rumors that the Union Pacific
investments segregation plan was Imminent
with an extra stock dividend involved. were
active Influences in the speculation. Re
ports Of & governmental Investigation OF
stock trading 10 decide the expedieney OF
laws 70 prevent stock gambling had a
rather chilling effect on the aggressiveness
Of the speculation. but the official denial
OF the report helped 10 sharp rebound IN