The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-10-04
TRADE REVIVAL
AN AID To STOCKS
Money Market Becomes Mar
row With Higher Rates
RECORDS MADE IN PRICES
Railroad Business Shows Expansion
- With Promise of Increased Divl-
dends and Greater Extension
of Lines.

New York. October S.-The brilliant
trade and industrial prospect was the
stimulating influence in the revived spec
ulation and strength in the stock market
last week. The narrowing resources of
the money market, the inevitable con-
comitant of the expanding business and
crop moving requirements were disregard
ed at the outset of the week, but gained
some influence toward restraint on the
speculation with the rise in the call money
rate.
The. cheerful views emanating from the
iron and steel trade formed a broad I'M
DERIVING basis for the confidence which
permeated all lines of business. The iron
and steel output for September was de-
clared to have exceeded all previous rec
ords, and wave of buying swept through
the iron market that threatened to ex-
haust the surplus supply and leave a
condition of famine. Some anxiety was
expressed over the danger of a runaway
iron market that might beget feverish
conditions and a subsequent reaction that
would alter the course of steady progress
was the appearance of the railroads with
orders for steel rails for next years de-
livery.
The Pennsylvania order for 100000 tons
to be allotted to different companies was
regarded as an important sign of the
policy of the railroads to resume free
purchase of supplies and to end the close
Iax
the financial depression.
The rapid decrease in the number of
surplus idle freight cars reported by the
American Railway association, with pros
pect of coming shortage of equipment,
points to another field of railroad require
ments which promised heavy demands Re-
ports of August earnings of railroads
coming to hand showed heavy expansion
in gross returns, with substantial pro
portion saved for the net through the
lesser increase in the operating cost This
tendency of railroad finances and the gem
eral growth of business awakened expec-
tations of coming increases in dividend
disbursements. These expectations were
diligently fostered by the conductors of
the stock market speculation. The record
high prices touched during the week by
closed the field of operations of these ex-
pectations. The resumption of dividends
on the preferred stock of the Westing-
house Electric and Manufacturing COM
ing made a strong appeal to sentiment as
representing the quick regeneration from
the depression which was being effected.
The copper industry showed some signs
of improvement and of coming up from
its tagging position, but was still subject
to some unsettlement.
The New York money market was slow
to respond to the obvious forces of de-
pletion of banking supplies which was at
work The effects of the large sums
brought to New York in connection with
the Hudson-Fulton celebration was given
some responsibility for this. The increased
speculative activity and the heavy with
drawals of cash, Joined with the neces-
sary preparations for the disbursements
incident to the October settlements, ult-
mateIy affected the money market. The
call loan rate rose to ~ per cent, the
highest touched since early in 1908, after
the decline from the stringency INCIDENT
to the panic, with the exception of a
furry In December last year The in
terror continued to withdraw large sums
from the New York banks, and there
were shipments in addition to Canada.
The sub-treasury operations made a
heavy exaction on the banks throughout
the week.
In foregn money markets discounts rose
from day to day, giving warning of the
protective measures there against further
dema rdsl from New York borrowers.
The restraining effect of the money de-
velopments on the stock market specula-