The Birmingham age-herald., 1908-06-15
INTEREST
 IN STOCK MARKET Political Activity Takes Prece-
 dence Over Finance
DULL TIMES ANTICIPATED
General Conditions Indicate Progress Toward Betterm ent In Prices and Crop Reports Have a Reas-
 suring Effect on Trade.

New York, June 14.-Untn after the middle of last week the stock market was in a condition of stagnation and the dull resistance of prices while this lasted and the apparent absence of selling pressure. in spite of the leth- argy of the demand was taken as good augury of the technical condition of the market.
 A change followed the announcement of the plan for funding the Erie bond coupons and the closing of subscrip- tions to the Union Pacific bonds and acute weakness developed. sThe ap- proach of the convention period for the great political parties has an in fuence in expressing speculative ac- tivity owing to the traditional belief in the tendency toward a waiting at titude in the general business world during the progress of national polit- ical campaign. Besides this general considera tion making for dull markets, there were a number of incidents in the weeks events having an important bearing on the shaping of the future.
 Cut In Steel Products.
 First place in this respect is ac- corded by financial opinion to the cut in prices of steel products which was formally announced through the of ficials of the United States Steel cor poration. The abandonment of the policy of rigid maintenance of prfces of steel products in face of the pros tration of the consumptive demand meets common approval in financial circles where, indeed, the policy has been the subject of varying criticism for months past. The openly expressed doubts of recognized trade authorities as to the suficiency of the efficacy of the cut to revive active consumptive demand accounts for the depressing ef- feet which has followed the announce ments Consumers are reported to be still holding off in the conviction that further reductions must be conceded, and such other concessions are alleged to have been made by Independent in- terests in steel bars. The prospect of wage adjustments to meet the reduction in prices realized for steel products and the danger of wage controversies with the complicating factor of the political campaign are not relished as possible speculative factors.
 Weight on Market.
 Another weight on the market was the uncertainty over the market policy to be pursued by powerful finacial in terests when the Union Pacific bond Notation was once fairly concluded.
 The importance attached to this transaction was the outgrowth of the popular assumptions of the extent of the preceding marke activities de- signed to lead up to and foster this f1otation assumptions which attributed almost the whole of the operations for the advance for many weeks past to those sources.
 The assistance preferred by the head of the Union Pacific system to the Erie by purchasing that company's note 1t a time when a receivership for that railroad seemed inevitable was sup posed to be directed toward the same general purpose of conserving confi- dence for the purpose of furthering plans for needed financing of other railroad projects. The closing of the subscription lists of the Union Pabnc bonds and the plan for the funding the interest of the Erie bonds in view of the admitted insuffcieney of earnings to meet that requirement were an- nounced simultaneously and gave a sin ister. impression of a patching up and tiding over of an embarrassing situa tion while the new capital flotations were being effected. The apparent ab sence of previous supporting measures in the stock market after these an- nouncements added to this impression.
 Progress Shown.
 General conditions show progress to ward recuperation and confidence on that side of the situation has grown. The government crop report of June has reassuring effect with a promisa of wheat crop estimated at over 688 00O, 900 bushels Mercantile lines re- port moderate expansion and the re- duction of 22,000 in the number of idls freight cars for the two weeks en14ng May 27, was counted an accurate index of better traffic conditions.
 Money continues to accumulate in all the great reserve centers of the world with a resultant downward ten dency of interest rates. The money market at New York was unaffected by the continuance of gold withdraw als for export by the expectation of further call for repayment of gov ernment deposits and by the accumu lation by the trust comne nies in prep aration of an additional reserve re-
 s,1,1