The morning journal-courier., 1908-10-12
FIN NANClAL REVIEW Flood of Liquidation of Foreign Securities, Upsets Ameri-
 can Market,
 s-H=Haa-aa ARTIFICIAL SUPPORT GONE
 -s-==sHa-. Weakness Due to Technical nisadlRn- tage and Not Impairment
 of Values.

The speculative element which has been holding prices of American SC curties at an advanced price level In the professed confidence in an early restoration of prosperity met sar ous obstacle in the flood of liquidation of foreign holdings of these securities which was let loose by the gathering of the war cloud in eastern Europe The unproitable nature of the attempt to hold up prices merely lo afford ad- ditional profit to foreign sellers made growing impression as the work pro- gressed and the selling pressure be. came more acute, until artificial SUI. port was practically ahandoned Vau ous factors combined, therefore. to make the effect or Europa'a political troubles rather more acute in tha New York stock market than on the for eign hourses themselves For one thing. < there was 2 new speculative commit. ment on tho long side of 'he market which was caught in a vulnerable post ton by the sudden decline and was forced to add to lt hy efforts fo racade from It's position The converaence ot rie selling from foreign sources au the New York market was natural consequence of the relatively hirh level of prices here and the remote ness of New York from tho immadi ate seat of trouble The prospect of a call for funds for war purposes prompted the conversion of securities t,1to asb which New York indisputably uas
 The weakness of stocks in the New York market was asoribed quite gem erally to the technical disadvantage ot its position and was not regarded as reflection of any likely Impairment of inherent values of American sacuH ties, even in the event Of a European war
 The strength in the grain markets was evidence of the increased demand expected for at least a portion of thr counHys copmodlties. Forepp de- rland for some other lines would of course he certain on tho s.la ar tna securities narl-tt in part llar there is the likelihood that. anar l"1u tho carly liquidation from foreign haukin- and financial sources to supply war funds, there would hc some flow af foreign investments capital into American securities after being dis placed from foreign enterprises imme- diately threatened with the damage from an outbreak of war Enterprise in America as being safe from this danger would attract an inflow of for eign capital on the ground of security alone The effect to he expected from withdrawals of gold from the New York market is more obscure. The great present ease of the New York money market and the prospect of abundant supplies for normal fall TO- quirements seem to promise mini mum of disturbance from any inrood upon gold holdings that should seem probable What would give ground for uneasiness over gold outgo would be the sustained redundance of the country's bank note circulation and tho possibility Of added niocliln Into tho currency by resort to the emergency currency law, which might operate to displace gold In the cur rcncy and give cXpulsive force to its export, The course of affairs at home was almost ignored in tho domnntine influence of the foreign situation There remained, however, a strong undercurrent of confidence in 'ho progress of improvement in business and in the prospect of it's acceleraton after the elections. Many indUs.riaI lines report q holding back of intani- cd orders pending the elections Pail road earnings show growing advau- tage in the comparisons with last years showing Orders for finished products of steel are stll moderate but the rate of iron production oa Oc- tober 1 had been restored to tWo- thirds of the actual output for tho banner month of October last year The months government crop reports are accepted as showing abundant grain crops already harvested ann definite assurance of plentiful crop with markets for all at profitable fg ures,