Daily Kennebec journal., 1908-12-07
PLENTY ON MONEY. ADMIRAL C0CALAN
II O. f:oo QuddorI, ooIurd..
Capital Seems Waiting For
Chance Of Investment.
Big Issues Of New Securities
Are Rapidly Absorbed.
Several Factors Restrain, But Do
Not Stop Speculation.

New York, Dec 6-The stock market
as a medium for the expression of
speculative opinions showed the play
OF strong contending forces during al
most the whole of last week. There
were days of marked strength and days
of acute weakness and other days
when opposing movements We're going
on at the same time in great ccnfu-
sion. The opposing opinions ranged
themselves broadly on the conserva
tive view of danger from over-specula-
ton on the one side and in ccnfidc nee
in the security of abundant money and
banking resources to sustain the spec
ulation on the other. The latter view
vas not altered materially by the in
creased firmness in the money market
caused by the absorption cf resources
il. many directions.
The principal avenue of absorption
Of available resources at present is
through the issue of new securities
which have succeeded each other ili
rapid succession to the extent of sew
eral hundred millions of dollars in the
last few weeks with prospect of i'm
pOrtant issues still to come. The read
mess With which these new issues have
been absorbed and the large resources
of capital awaiting investment thus
indicated have been pointed to as one
of the strongest features of the situa-
tion Means are thus assured for re-
sumption of projects OF improvement
involving outlay for supplies which
must stimulate greatly the consump-
tive demand for extensive lines of COM
&c,
there is the modifying consideration
that a large proportion ;)f the recent
new financing is in the form of refund
ing of spot time obligations which
We're put out by the great corporations
in the period of financial stress from
which the country is emerging and for
which eX1ravagant rates of interest
were being paid.
The new financing reveals material re-
lief from the onerous rates paid on the
earlier temporary obligations. but the
prices at which the new securities are
sold fail tc demonstrate the full re-estab-
lishment of the former easy terms of bor
rowing even for long fixed periods. The
lower prices offered for the new securi-
ties constitute an attraction for capital
which prompts some diversion of holdings
out of existing securities at the current
high level of prices into the new partic-
ipations.
Interior demands upon New York for
currency were extraordinarily light
throughout the autumn and the fact that
the treasury department was withdrawing
funds from the money market and is still
doing SO, in contrast with the practice of
many years of measures of relief for the
money market, throws further light on
the unusual conditions existing. This con-
dition is due. of course, to the fact that
the huge injection into the circulation to
meet the panic requirements last year
the activity of trade has not been re-
stored to a degree that makes anything
like the former requirements for currency
or credits.
The reported lull in the iron and steel
trade, the reactionary tendency in the
copper market, the halt in the increase in
railroad freight movement with the early
approach to completion of the grain and
cotton movement and the moderation of
the rate of expansion of bank ciearings.
servative attitude. The coming - tariff
revision and suggestion of labor disputes
in the anthracite regions and on the
Pennsylvania system west of Pittsburg
We're additional factors of restraint, but
not of prevention Of the speculation