The Birmingham age-herald., 1908-04-06
COURSE OF STOCK
 MARKET IS PUZZLE
Prices Are Affected By Factors
 Below the Surface
DISAPPOINTMENT IS FELT
h7nipulation Has Had Great Deal To Do With Stocks and Market Is Now Waiting For Evidence
 of 5etterment.

l New York, April 5.-A reaotionary tone was evident in the securities market last week. How far the change in speculative sentiment was cause and how far effect of this check to the previous advancing tendency. of prices is difficult to discern. Some explana tion of the reaction is found in the extent to which the advance had run. process which would necessarily, in course of time reach limit in attain ing the level which would adequately rep resent the betterment of conditions on which it was inausurated. Not only this, but in accordance with the invariab1e rule of speculative movements it would be expected to overrun itself and be affected by the realization of holders who had overstayed the movement and felt no disposition to hold through a possible decline
 That some disappointment is entertained over the moderate rate of reouperation in business activity is inferred from the cx- pressions of recognized authorities in va- rious fields Chairman James J. Hill of the Great Northern board gave out a pub lished interview in which he said that spring had been looked forward to as tne period for restoration of business activity and that with the arrival of spring, be was unable to perceive the restoration.
 This view was contested by Comrcis- sioner Lane of the interstate commerce commission, who maintained the eondl- tion of the railroads had not been ma terially impaired as a result of the busi- ness depression. The advocates for the view of check in the rate of recupe1a- ton pointed to conditions in the metal trades as confirmation of their contention. The recognized organs of the iron and steel trade assert that new orders for finished products are on a scanty scale, and do not promise well to outlast the spring influences towards activity. Prices for iron are not we'll maintained, and pos sible reductions continue to be discussed, but without sanction from the represen- tatives of the principal allied interests in the trade. Prices for copper have receded here and abroad and complaints are heard of accommodating stocks of the metal.
 Railroad officials express no enthusiasm over any signs of expanding traffic. Re turns of earnings for the later periods
 
 of economy adopted from the business de- pression in control of rate of shrinkage of net earnings by curtailment of expenses against the decrease in gross earnings. 1 This showing is approved by holders of securities but it leaves for account the decrease in the wages fund and the re- duction and the amount to be expended for consumptive requirements of com modties
 Increasing attention is centerins on the crop outlook since decisive influence is ex- pected in the shaping. of the future from the years field.
 Opinion on the financial situation was shaped by the long drawnout struggle to adjust the difficulties confronting the Erie railroad. The discount in the price of ma turing Erie notes shows the difficulties of that company ln providing for floating 1 indebtedness. Nevertheless in a list of more than two score of note issues by railroad and industrial corporations ma turing at various periods up to four years, the prices at which they are selling show varying discounts in nearly all cases and this, although the rate of interest return is well apove the prevailing in- terest rates for time loans in the money market
 Prospects for the absorption of new is- sues of securities are poor from the indi- cation furnished by this showing. The heavy issue of German and Prussian loans proved disconcerting to investment mar kets in all the great money cenrers abroad. Foreign exchange in News York, in consequence, has moved in a way to suggest a coming outgo of gold. The course Of the United States government revenues makes if evident also that large further withdrawals of government de- posits from the banks are imminent.
 The money market itself is quiet and undisturbed by these prospective require ments, but the tranquil money market fails to afford any stimulation to the ii' vestment demand either for existing s- sues or for proposed new capital issues