Omaha daily bee., 1909-08-09
HIGH PRICES
In WALL STREET
Average Level of Values of Leaders
Nesrs Record Mark Of Three
Years Ago.
DEALERS BECOME CAUTIOUS
Belief That Favorable C are
Already Largely Dis ~
WHEAT OUTLOOK is n
Improvement Stimulates Nov
of Iron and Steel. =
Improvement Stimulates Nov
of Iron and Steel.
EFFECT OF NEW TARIFF Law.
General Expectation That Large
Orders which Have Been Held
Up Pending It's Passage
Will BE Relieved.

NEW YORK, Aug. s-Last week in the
stock market saw prices carried to the
highest average level touched since early
In 1905. when the highest prices in the
history of the New York Stock exchange
we're touched There is a considerable list
of prominent active stocks which made
absolute records, including representatives
Of such various groups as Union Pacific,
United States Steel and Reading. The COM
parison Of the average price Of the twenty
most active railroad stocks and the twelve
most active industrials shows high point
last week Of 1925 for railroads and es. 30
for industrials, compared with 1886 for
railroads and 1903 for industrials in January
of 1904
Realization OF the close approximation
thus made to the market level during the
speculative anticipation OF the country's
most prosperous period indicated eau
tious spirit In the speculation last week
and prompted TO some careful analysis of
the extent to which the business recovery
had actually gone as a warrant for such
prices Of securities. There were cited in
support of the validity of the price level
a number of striking facts. First promi-
nerce is held by the brilliant outlook for
the country's agricultural production. The
conviction holds that this will exceed in
value that for any preceding year.
wheat have been lessened by succeeding
developments and the excellent promise for
the spring wheat keep up the hopes Of
total crop OF good volume. Expectations
Of the corn crop steadily grow, and the
government crop report. to be given out
at the opening of this week, Is confidently
looked for to confirm the good prospects
OF the cereal crops. Last weeks cotton
crop report left no room for question of
the serious impairment OF the probable
yield of the crop, and the disadvantage
of high prices for cotton products which
viii result is recognized. High prices for
wheat also win count. Tor agricultural pros
pertty.
wheat Helps steel.
The stock market recognizes no broader
and surer foundation on which to rear
stock prices than the prosperity of the
farming communities. The free movement
of wheat to market corroborates the hope
full sentiment regarding the grain crops,
and insures abatement Of the surplusage
of idle freight cars, which has been most
persistent in the grain-carrying box cars
This influence spreads into the steel in
rnent which are coming from the railroads
to that branch of the industry. Sentiment
regarding the great basic iron and steel
Industry is most sanguine and constitutes
an Important factor in the speculative posi-
tien In the stock market. A record output
of iron by the United States Steel corpora
ton for July is a fact relied on to buttress
this sentiment The great confidence prev
alent in the steel trade neutralizes the
less cheerful conditions in the copper
trade where sustained production keeps
ahead OF actual consumption, as shown by
the continuous growth OF warehouse stocks
of refined copper in Europe.
In general mercantile lines a quickening
OF activity is already manifest in the
heavy bank clearings throughout the coun-
try and in the increasing volume of mer-
camille paper. Offered to bankers for dis
count 1t Is believed that the actual pas
sage Of the tariff bill will release large
orders from merchants, which have been
held back in the desire to know definite
results before making business ventures
Effect of Tariff Bill.
The passage of the tariff bill marks a
period which was set year ago as the
probable end OF the uncertainty and re-
straint upon business which might hold
ended, As the final terms of the new law
shaped themselves and the evident dis
position OF the country to proceed with
It's affairs became manifest, the stock mar
ket. as we'll as other business activities
set about with the law enacted. Knowing
that this process had been going on, the
actual enactment OF the tariff law brought
some natural hesitation in the market 10
measure the outside response by the buy
ing Of stocks which is relied on to COM
plete the profits Of the speculative ad-
vance IN stocks.
The money market position and outlook
gains increased Interest on account of the
speculative position. which Is largely de-
pendent on It. The beginning OF the with
drawaI Of funds for use In the interior,
which is seasonAble at this time Of har-
vests, is making itself felt on bank re-
serves ana on time money rates Demand
for time loans carrying over the end OF
the year has become active and bankers
expect to sec rates rise from this time
until then. The possible liquidations OF
requirements for large capital flotadons
il considered. II is expected that the
demand from foreign investors will aid
in solving that problem. The export OF
agricultural products also is relied on 10
make exchange and bring relief to the
money market in case OF threatened strin-
gency. which Is not expected to develop.
u Ella GinEIes off for Ireland.
CHICAGO. ILL.,, Aug 6-Ella Gingles.