The Montgomery advertiser., 1909-09-06
FINANCIAL REVIEW

New YORK. sept b-Wnen puBlnosS
began in the stock market last week
evidence had been accommodating over
Sunday which served to dissipte the
anxieties which had been keeping the
market unsettled and excited.
More exact information Of e. H.
Harriman's state of health Quiet0d the
hysterical alarm on that subject which
had been felt ever since the seclusion
into which the fnancier had retired on
his return from abroad and the en-
tire reticence observed by all having
knowledge of his real condition. A
personal statement from Mr.. Hartman
himself late on Monday, confirmed the
more rational impression of his health
and the subject thereafter dropped al
most into obscurity and did not hRure
more than casually In stock market
consideration.
This retirement Of the subject from
prominent consideration by no means
ended it's influence as factor on
prices, as there was q residue OF UNI
covered short sales of stocks based on
the expected Ill effects OF the declining
strength of the president of the Union
Pacific and the interruption to be caus-
ed to the vast financial projects which
he is supposed to be pursuing.
The short interest In the market was
a substantial influence throughout the
week, even after the urgent and al
most panicky buying for that account
at the opening of the week.
The approach of a holiday interval OF
three days~at the end OF the week In
tensified the disposition to close up
speculative contracts and increased the
demand for the short interest. With
the clearing away OF the anxieties
caused by Mr.. Harriman's illness tho
way was opened for resumption of In
ffuence by the very favorable factors
In the general situation. OF these pri
mary Importance was accorded the iron
and steel trade situation. as was seen
by the aggressive leadership of United
States Steel in the recovery of prices
This was sufficient to place the price Of
that stock at a new record level.
Trade advices all pointed to the ex-
banding demand for iron and the ex-
traordinary activity In all lines OF nm
ished steel products. Various trade
and financial authorities gave extreme
ly sanguine estimates OF the probably
unprecedented volume of the product
Ion next year.
The Influence of the steel trade ad-
vices was not supplemented efrectual-
lv from the copper trade. owing prtn-
cipally to the statistical position of
that metal Re-eales Of copper metal
and a further accumulation of stocks
in European warehouses suggested the
Inference that speculative buying had
heen a large factor In such increase In
demand as had occurred. while the sus-
tanned rate of production argued a diff
fculty in sustaining the price for the
metal.
The agricultural prospect suggested
some cause for anxiety. The govern.
ment report of the cotton condition
showed so heavy a deterioration as to
bring 1t to a percentage lower than
ever before at this season. 1t needed
full allowance for tho compromising
influence of the enlarged acreage for
the crop and the heavy reserves im-
piled by the showing of last years un-
precedented crop to mitigate the bad
effect of this showing.
The lack of moisture for the corn
crop and the conviction that 1t was
going back. had to be faced. Some
warning notes were heard also from
sources which command respect in the
| financial community of q danger OF
over estimates of the wheat crop IL"
self.
The money market is subject to close
| scrutiny. owing to the known factors
at work there to effect the future. but
| the actual effect on rates has not been
sufficient yet to become an active IN
huence in the speculation. The inte-
rioT is drawing funds from New YORK
for seasonable use. The prospect OF the
| government borrowing at an early date
becomes clearly defined.
Several large railroad loans are to
be financed. The foreign exchange
outlook is unusually perplexing, with
| the complication of enormous Indebted
ness to be met on account OF bankers
| borrowings and the problem of the
chandise imports and of a short cotton
/ crOn on eXDOrtS.