The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-06-08
FINANCIAL REVIEW
Relief Felt from Adjournment
of Congress Counteracted by
Government Suits.
SHARP PRICE REACTION
Misgivings as to Future Trend of Mar
ket Follow Union Pacific
Bond Issue.

The early strength and the later un
settlement in the securities market
last week were attributed to the cul-
minaton of some of the influences
relied on to advance prices and the
development of some more doubtful
factors in the situation The conclu
sion of the session of congress with
the enactment of an emergency cur
rency law was made the occasion for
quite a demonstration in the stock
market Such a movement had be
come almost a fixed tradition with
the professional element amongst
market operators since tho era when
control and regulation of corporation
affairs has become a prominent sub
ject of legislative attention The adj
journment Of congress Is regarded.
from the point Of view Of that Gle
ment as a promise Of surcease from
threatened activities which are viewed
with more or less nervous appre-
hension by security holders. The re-
ports. later in the week, Of further
prosecution in contemplation against
the Standard OH company and Of pos
sble fines running to a maximum
even greater than those in the for
mer suits, caused r reyulsion Of sem
tment in tho minds Of spectators
who had ass med a period of eXemp-
ton for corporations. This feeling
was responsible, in part. for the sharp
reaction In prices. There was percep-
tlble. also, some revision of opinion
OF the effects to be looked for from
the operation of the new currency
law.
Some of the earlier bullish enthu-
siasm In the stock market was asso-
ciated with the concerted demonstra-
ton in some parts Of the commercial
and industrial world of professed
confidence in the early resumption OF
prospective activity. The placing OF
some large orders in the St. Louis
Ndistrict and the enlargement of pro-
diction amongst the New England
textile mills were effective aids to
this demonstration. It was counter
acted sharply by the announcement
OF a cut In the price of steel bars
which was given formal sanction by
the United States Steel corporation
Official protestations of the intended
strict Limitation Of this reduction did
not allay anxiety over the possible eX-
tension of the movement generally t.
oil lines of products. The involve.
ment IN the problem thus presented
was indicated by the contention Of the
operators I'm the conference between
the Western Bar Iron association anC
the Amalgamated Association or Iron
Tin and steel Workers. connection
Is assumed between the policy Of at
tempted maintenance of prices in thu
steel trade and Of the advance o
freight rates by the railroads anC
the hoped for avoidance Of cuts il
wages in those fields. The develop
ments in the steel trade aroused SOM
fears that wage controversies woulC
be the outcome in both fields
Outside the element OF professional
and habitual stock operators it is dif
fcut to realize how large part IN
expected Union Pacific bond issue ha
played In the movement of the securi
ties market Large operations hav
been based constantly upon the sup
position that the friends of the Unto
Pacific property primarily and bank
ers and capitalists moved by simila
motives have fostcred and protecte
the protected the upward movement G
prices to help on the demand for pro
jected new capital Issues. The actio
of the market from time to time seem
ed to show the powerful control eXer
cised by these forces. With the con
cluslon OF the Union Pacific transac
ton there arose misgivings over til
future action of the market
Conditions in the money market NOV
ed steadily towards greater ease bot
here and abroad The reduction in tn
official discount rate of the lmperif
Bank of Germany marked the final res
ponse to the relaxing tendency wher
it was belated. Money on call in Ne
York loaned as low as one per cen
and rates for time loans, also wer
shaded. Foreign exchange rates, nev
ertheless, yielded in New York and II
end Of the gold export movement wa
believed to be reached There wa
growing confidence also in the Gro
promise, in spite of mixed advices (
weather conditions through the weel