The sun., 1909-02-28
FINANCIAL AND COMMERCIAL.
SATURDAY. Feb. 2

uoh otoOh' AS Tekdiucu iscduhB' "
course. there was renewal OF specula
tive apprehension regarding the possf
bility Of an adverse decision in the com
nodities clause by the Supreme Court
on Monday: but conservative opinion or
this point was, as II all along has been. thai
although decision m the case one way
or the other may be announced on Mon.
day. too short time has elapsed since
the argument TO cause reasonable antici-
patious OF pronouncement by the court
on the first day of next week. The court
may hand down its decision on Monday
and Il may not for weeks or months hence,
the seeming probabilities favoring a
longer delay. Considering this fact and
also that the relation Of the Reading Com
pany to the case now before the Supreme
Court seems at the most remote there
are not q few observers who maintain
that the particular heaviness OF Reading
recently--the stock being one that has
shown less resiliency than any leading
issue In its recovery from the market de-
morslization on Tuesday--is due to other
causes than those in any way connected
with legal proceedings. II Is we'll known
that the coal business, both In the anthrax
cite and bituminous industries has been
particularly depressed this winter. and it
would surprise nobody. although no OFF,
cial or semi-of1cial intimations Of the
adoption OF such policy have been af-
forded. II the Reading management
should take steps TO stop the overpro-
duotion Of GOAL that Ia now manifestly in
progress. Such an act might also abate
somewhat the feelins1of the coal miners
that the present is an advantageous time
TO force an issue with their employers
on April upon the questions Of higher
wage scales, shorter hours Of labor and
the like. Nevertheless to-day. despite
the pressure upon Reading. the general
market with only two or three exceptions
closed at an advance: and the buying was
rather commonly attributed to the fur
ther retirement Of what is now conceded
20 be an extended short interest in the
market that was created earlier in the
week. There was no news Of consequence
beyond the weekly bank statement which
was distinctly Of the class known as
.better than expected As against yes
terday's prevailing estimate Of loss In
cash Of 5000 900. owing to the Govern
ment's call for a return OF deposits. the
Clearing House institutions exhibited
neither by the actual nor average figures
OF the return loss of over 81, 900 900. the
average figures indeed showing a loss Of
less than 81 600 600. Bank loans de-
creased rather less than it was thought
they would In view Of the stock market
liquidation in the last few days. so that the
bank surplus underwent no material
change.
The break in the stock market this week
was concentrated In the first business day
OF the week. and since that time the ten
dency Of prices has been in the main up
ward. IL was obvious that a great deal
Of the selling which had made thesiolent
drop in prices was due to bear opera |
tions. and as the week passed a sentiment !
slowly gained ground that the campaign |
OF this nature had been overdone. The |
impression was also formed that the tech |
nical position OF the market had been |
helped through the removal OF a large |
quantity Of stocks from the financial dis
trlct by means Of investment purchases |
made upon scaled buying orders in the
course Of the decline, and it was definitely |
known that on Tuesday there was an |
enormous execution OF orders for odd lots |
OF stock by small investors. AS the week
ended. too. it seemed as II light was
upon the iron and steel situa-
tion 70 this extent. that the surprisingly
large reductions in prices made by the
United States Steel Corporation had had
the effect Of driving many Of the shall |
steel producing concerns out Of the mar
ket. II this Is true 1t means that what
ever warfare In the trade has existed Ia
Mt an end or pretty nearly 30. The cues
ton still remains to be settled, however,
how much new business will be created
by the cuts in prices made and how In
dustry not only in the steel trade but over
the country In general will be affected by
q possible reduction Of the wages OF en-
pfoyees that may have TO he made by the
iron and steel producing concerns. There
10 naturally much discussion concerning
the wisdom Of the policy Of the Steel Cor
poration In maintaining prices no long
at fixed figures; but many Of the criti-
cisms Of the Steel Corporation that have
been heard are In the nature Of that shind-
sight which Is often found 30 wise on such
occasions as the present. The question
is at best an academic one, just as the in
quiry Of what would have been the effect
upon the trade six months ago IL the Steel
Corporation at that time had adopted a
policy OF gradual reduction Of prices.
There are many who think tn at the pur-
suance Of the last PANIED course would
have resulted In greater trade demorali-
zation than the course actually followed.
One matter that complicated the market
last week was the renewal Of
in Europe over affairs in the Bal
kans, the trouble taking the form at this
time Of the prospect OF a struggle between
Austria and Servia; but at the end OF the
week 1t seemed as IL the efforts Of the
buyers to adjust the matter had been
successful. Trade and business in the
as a whole this week were un-
affected alphabetically In
some degree by the upset in STEEL Never
theless, the railroads continue to report
very favorable statements Of weekly
and these statements undoubt-
edly have had much to do with keeping
railroad stocks in the security market
strong-and in n way regard
Iess Of the heavy pressure brought TO bear
\ gainst the industrial shares.