The Birmingham age-herald., 1909-09-27
FINANCIAL REVIEW
 FOR PAST WEEK Speculation In Stock Market
 Is Unsettled SOUTH WANTS CASH Storm Damage Gives Stimulus to Spec .ulation in Cotton = Iron Market Is Very Active - Even Cop
 per Shows Improvement.
SOUTH WANTS

New York, September 26.-The specula- ton in thS stock market was kept un- l settled last week by the inroads, present and prospective. making upon the reserves of the banks; by disappointment of specu- lative production in several influential cases and by a feeling of disquiet over the prominent place given in President ! Tafts western addresses to the proposed l programme of legislation for further re- form of corporation abuses. The work started under the influence of the large recuperation of the surplus reserve shown by the bank since the weekly statement. This impression proved transitory and the accumulating evidence that higher money rates were in prospect brought convictions.
 The advance in the official discount rate of the Imperial Bank of Germany oper- ated on all the foreign money markets and served notice of the 1essened freedom with which credits for speculative use could be sought in foreign money mar lIets by American borrowers.
 Private discount rates advanced in Lon don, Paris and Berlin and the decline in condition of the great central banks at those centers disclosed the operation of forces of depletion at the great reserve centers. Some of the week S liuuidation of securities came from abroad and was an additional factor in stiffening the rate of foreign exchange. The temporary effect on the currency movement of the stiffness or money rates in New York passed away. New York exchange at Chicago. which has risen to par, fell back to a discount, and the interior renewed it's demands on New York for currency. There was a deposit at the sub-treasury for telegraph ic transfer to New Orleans. revealing the development of a demand for cash from a new source.
 The New York banks took heed of these signs of further requirements and there was a recall of credits from the stock market from time to time. The effect on money rates was restricted only by the liquidation of stocks which kept pace with the loan contraction.
 A series of rumors which have been made effective in speculative advances in prices were disproved in rapid succession,
 
 on much of the material that was relied on for stimulating demand, and on the motives of those who had set the rumors in circulation. The St. Paul stockholders took no action toward granting subscrip- tion rights for new securities, the Penn sylvania directors refrained from a sim liar action, the directors of the Central Railroad of New Jersey did not increase the dividend distribution. There had been animated speculation based on the ex- pected action in each of these cases.
 News from the industrial and business world was favorable to values with the exception of the storm damage in the south, which gave a new impetus to the excited speculation in cotton. Eager buy ing of iron and In large volume at rising quotations was reported. Even the cop per market enjoyed some improvement, which stiffened prices and caused hopes of turn in the situation in that trade. Railroad officials reported sustained traf- fic, modified to some extent in the cotton and corn regions by impaired crop pros poets. The weeks advces from the corn crop were encouraging and estimates of the probable final yield were raised. The influence of these factors on the stock specula ton proved Of less force than the mere technical consideration of the mis- carriage of speculative tips" and the hardening of the money market