The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-09-21
FINANCIAL REVIEW
Maine Election Used as Excuse
for the Expected Politi-
cal Scare.
LEADERS, TALK DUBIOUS
Disavowal OF Supposed Backcrs oi
Market Turns Attention to
Actual Condition.

Tho pronounced reactionary tone
which developed In the securities
market last week was generally at
tributed TO what the financial district
called a political scare" After the
result of tho Maine election became
known on Tuesday the struggle to
maintain prices became manifest and
its success diminished as the pressure
OF this liquidation increased and the
perception of this liquidation grew.
e. II. Hartman and James ]. Hill,
newly returned from prolonged stays
In the west. gave public utterance 10
views expressing a feeling of doubt
over the outcome of the elections and
dissatisfaction with the languid inter
est I'm tho campaign manifested by
voters. Coupled with this tone OF ad-
monition against the assumption cur
rent in Wall street on the political sit
uation were other circumstances which
intensified the impression that these
accepted financial authorities found
something to crltcise in tho course to
which the speculation has run. lm-
mcdiately on his return to tho flnan-
cial district from his western trip, Mr.,
Hartman denied many of tho rumors
which had been In circulation regard
ing his properties and his plans. This
action cut away the ground from UNI
der the speculative position Of the
most active element In the market OPP
cratons and implied tho disapproval
of tho man credited with lending all
his power and influence to the move
ment
When It was realized that the sup
posed responsibility for tho course of
the market was being practically dis
avowed there was a quick turn to
more attentive consideration of some
of the unfayorable factors in tho sit
uation, Amongst these It was not lost
sight of that enormous obligations for
call loans presumably employed in
market operations, were controlled by
the financial institutions holding close
relations with the wealthy group cred
tied with tho leadership in the stock
market. The dependence of the spc-
1lI3tlve position upon this relation was
a cause OF uneasiness This was ag-
gravated by the course of the Nancy
market. The process Of piling up idle
reserves In the New York banks mani
testify had come to pause with tho
beginning Of the flow of currency out
of New York bank reserves and into
western and southern channels of
trade. Tho persistent frmness of the
foreign exchange market in face of all
the conditions making for New York
control of the exchanges kept alive
discussion of gold exports and gave
warning Of the burden OF keeping M
securities prices at a level which was
attracting foreign holdings TO the
home market
Railroad earnings were so far from
showing the hoped Cor recovery that
dividend prospects came in for revived
discussion The slowness of the re-
covery In the iron and steel trades
was reported to be emphasized and
further reductions In the price OF
copper extended the uufavorahle in
f1uence into other fields of the metal
industry. TIL anxiety over the droutll
was but partly relieved by tho amount
Of precipitation and decrease in the
ultimate yield Is taken into the roclt-
oning.