The Montgomery advertiser., 1908-06-15

acute weakness developed. The ap- proach of the convention period for the great political parties has an influence in suppressing speculative activity ow- ing to the traditional belief in the ten- dency towards waiting attitude In the progress of a national political cam paign. Besides this general consider ation. making for dull markets, there were a number of incidents in the weeks events having an important bearing of the shaping Of the future.
 First place In this respect Is accorded by financial opinion to the cut n prices of steel products which was for maliy announced through the officials of the United States Steel Corporation. The abandonment of the policy of rigid maintenance of prices of steel pro- duets in face of the prostrAtion of the consumptivs demand meets common ap- proval In financial circles where, indeed the policy has been the subject of vary ing criticism for months past The openly expressed doubts of recognized trade authorities as to the sufficiency or the efficacy of the cut to revive active consumptive demand account for the depressing effect which has fol- lowed the announcements. Consumers are reported to be still holding off in the conviction that further reductions must be conceded and such further con sessions are alleged to have been made by important independent interests in steel bars. The prospect of wage ad- justments to meet the reduction in prices realized for steel products and the danger of wage controversies with the compIicating factor of the political campaign are not relished as possible speculative factors.
 Another weight on the market was the uncertainty over the market policy to be pursued by powerful financial iIi- terest. when the Union Pacific bond flotation was once fairly concluded
 The importance attached to this transaction was the cutgrowth of the popular assumptions of the extent of the preceding market activities de- signed to lead up to and foster this Notation: assumptions which attributed the almost whole of the operations for the advance for many weeks past to those sources.
 Tho assistance proffered by the head of the Union Pacific system to the Erie by purchasing that company's note at time when receivership for that railroad seemed inevitable. was sup posed to be directed towards the same general purpose of conserving confi- dencs for the purpose of furth sring plans for needed nneucing of other railroad projects. The closing of the subscription lists of the Union Pacific bonds and the plan for funding the iIie terest on the Erie bonds in view of the admitted insufieiency of earnings to meet that requirement.. were announced simultaneously and gave a sinister irn' precision of patching up and tidinB over of an embarrassing situation while the new capital notationg were being affected. The apparent absence of previous supporting measures in the stock market after these announce ments added to this impression.
 General conditions show progress to- wards recuperation and confidence on that side of the situation has grown. The government crop report as of June 1, has reassuring effect with q promise of wheat crop estimated at over ess.oo0.000 bushels. Mercantile lines report moderate expansion and the reduction of 22,000 in the nun. Der of idle freight cars for the two weeks ending May 27, was counted an accurate index of better traffie condi- tions
 Money continues to accumulate in all the great reserve centers of the world with resultant downward ten- dency of interest rates. The money market at New York was unaffected by the continuance of gold withdrawais for export. by the expectation of q fur. ther call for repayment of government deposits and by the Accumulation bv the trust companies in preparation tor an additional reserve requirement. which becomes obligatory on July l.