The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-05-24
TEE FINANCIAL SITUATION.

Throughout the last week but one
q sentiment began to make its influence
%peroeptibly felt in Wall Street that the
stock market was suffering to a greater
or less extent from a surfeit Of good news.
Tho speculative traders. or many Of
them. declared that they we're tired OF
hearing day in and day W reports Of
the oountry's improving business and
that tidings \, this sort had reached the
point where tley no longer stimulated
buying Of stocks. The high prices for
stocks were dwelt upon, and 1t was con-
tended that the market had continued
strong for several weeks and that upon
the mere theory Of ordinary market
action and reaction a considerable recess
sion in value was probable or at any rate
ought to occur. A certain class OF
operators were impressed with the argu-
ment that although the financial skies
were now clear something was bound
to turn up one or later to disturb
their serenity; while others still harped
upon the fact that the period of the year
was ono In which the stock market not
infrequently hesitates. No n denies
that the present Il an important time Of
year as regards the crops. The corn
crop. the country's most important staple.
is as yet barely planted. even although
this planting has taken place under ex-
ceedingly favorable conditions, the aero
age therefor known to be heavily in
creased and the promise a. It stands
for tho largest crop on record. 1t 10
obviously too early yet for any ono to
say that our harvests this year will surely
be satisfactory. As q result Of all these
considerations and various others Of q
vague and indefinite nature a large amount
Of stocks was l~iquidated in the market
in the time to which reference has
boon made: and this selling move
ment continued through the early part
Of last week a. vol. Tho death Of
q. n. Rogers last week was also q
test Of the strength OF conditions, because
although It was perfectly well known that
Mr.. Rogers had not been interested in the
stock market for v two years back In
either . directly or indirectly speculative
way, yet his taking Oh still meant tho
removal from the financial life Of tho
country Of one OF its most prominent
figures. And yet after all this observers
of tho market. and particularly those who
had sold stocks, found that prices were
still but slightly below tho highest levels
Of tho year. An absorbing power from
some source or variety Of sources had
taken without effort all tho stocks that had
been sold. There was Obviously no pres
sure whatever to sell proceeding from tho
general public. The market at its lowest
point became exceedingly dull. Only
one conclusion could DO drawn, and that
was that confidence In the stability Of
values and belief that with fair crops
in the present year the country was
once moro ON the eve Of boom times
was still the supreme feature Of the gen.
eral financial situation. 1t 10 Of course
manifest that the prevailing judgment
Of this sort Is heavily reenforced by the
fact that splendid weather for the crops
has ruled practically throughout the en-
tire year thus far. The shortness Of the
winter wheat crop or what presumably
will be such ID solely due to the ~unfavor-
able drought conditions under which
tho crop was put into the ground last
fall. Tho weather since then has been
pretty nearly perfect for agricultural
purposes. There has been some CON-
plant Of drought in Texas and in certain
sections Of Kansas and Oklahoma, but
last week good rains fell in all these dis
tricts, and from present indications the
Governments next monthly agricultural
report will place all the leading crops on .
higher statistical average than on May I.
The upward movement in the price OF
grain has continued. but this rise has been
exclusively caused BY renewed evidences
Of the reduced quantity Of last years
supplies Of wheat and by the exceedingly
poor outlook for the. foreign wheat crop
in the present year. Reports are becom-
ing definite from England. France. Aus
tria and pretty nearly all the European
countries that this year the wheat harvests
there will be decidedly smaller than they
were in 1908; and such q development 10
the reverse Of q bear argument either
in our own grain or security market.
1t is Aso indisputable that a distinct
reason for the strength Of the stock mar
ket latterly has been the cumulated proof
OF a development Of the country's iron
and steel business that is exceeding all
previous anticipations thereof in the
higher circles In the steel trade. The
out in the list price Of wire products made
only . short time sinoe-this being the
only branch OF the trade with the eIcep-
ton Of steel rails in which q large read
justment OF prices has not been made
brought out such a volume OF now business
that all the wire companies were deluged
with now orders and were soon forced
to restore prices to the former level. In
other lines the m~anagements OF one great
mill after another found hat they had
booked orders sufficient to carry them at
pretty nearly full capacity throughout
the present year. all this coming too at
the season Of the year when ordinarily
tho demand for iron and stool products
slaokens. The first public Sign Of what
was going on was afforded in the action
taken by q large number Of tho indspen-
dent steel producers in tho Pittsburg dis
trict restoring wages OF employees on
June 1 to the old figures from which they
were reduced a few months ago; and 1t
not take long under such circum-
for Wall Street to conclude that
the time was>yet not at hand when some-
thing might be expected to turn up