The Montgomery advertiser., 1909-05-17
FINANCIAL REVIEW

New York, May LEA feeling OF
confidence over the progress OF rail-
and Industrial development prevailed
In the financial community last week.
That events were shaping towards
restoration of prosperity was the gem
eral conviction. Ii, the securities and
money markets the erect of this COM
viction made itself felt but was tenn
pered by the extent TO which the anti
cipation of this condition had already
gone In the speculation. Hence, the
uneven and Irregular price movement,
which left the tone of the stock mar
ket confused and uncertain.
Evidences Of business Improvement
came from practically all directions
Special Importance was attached TO
the advices from the metal trades. The
April statistics Of the copper produce
ers association showed that the deliv-
cries had taken care of all but less
than a million pounds of the month 8
production while the rate of produc-
tion was fully maintained over that of
previous months. Reports of contin-
ued heavy selling of refined copper
promised to turn in the heavy accu-
mutation Of surplus stocks OF copper
which has been going on for months
and depressing the market and the
outlook for that metal. 1t was sig
nificant of the speculative conditions
In the stock market that the copper
securities themselves sold OF on the
publication of this encouraging ex-
hibit, owing to the large buying of
those stocks which had been done in
anticipation Of this showing and ac
companied moreover, by exaggerated
reports OF the Improvement to be
shown. Iron and steel trade authori-
ties gave testimony to the growth of
sounder conditions in that trade and
growing hopefuiness over the future.
There was, however, some apprehen-
sion in this trade that recent buying
represented to some extent specula-
ton and a stocking up for future needs
that would leave a dull period to fol-
low In the trade. Conditions govern
ing the crop prospects were regarded
as greatly improved. owing to the
state of the weather. Returns Of rail-
road earnings indicated expansion IN
freight traffic. Expanding bank clear
ings and an increasing supply OF nler-
camille paper Offering to, bankers was
another index of the revfving tendency
of trade, The stock market was ami
mated and made an occasional show of
decided strength. The advances were
so kbroken by reactions, however, and
the persisting rise was so confined
within a few stocks that a close an
alysis Of price movements in detail
shows a long list OF important securi-
ties that were little changed by the
weeks operations. The coaiers sup
piled the sensational feature OF the
market and gave 1t the most OF its
semblance of buoyancy and strength.
The spectacular rise In this group
was not accounted for by any actual
happenings, but by abundant rumors
alleging "a project near maturity to
the coal properties and
distribute the proceeds to stockhold-
ers of the railroads. The restraint on
the general price movement argued a
large speculative liquidation. The mo-
tive for these realizing sales was
sought in the high level to which
prices have attained. The average
price level is computed to exceed any
touched before January Of sl07 The
buying which has brought about these
high prices is founded on banking
credits to an important degree. Loans
OF the New York clearing house banks /
are close to the highest figures ia the
history of the institution.
Mercantile demands for banking IA
cilities are growing and great corpor-
alton loans remain to be provided FOR.
Lenders OF money for fixed periods are
raising interest rates. a. ,htesrs &