Omaha daily bee., 1909-02-15
Market Reflects Grow iorpor of
Speculative
FIRM TONE is ~ NED
Holders of Securities Seem I'd
to Await Revival Of Dem
JAP SITUATION CLEARS
JAP SITUATION
Rise of Bonds in Europe Real Index
to Situation.
HALT IN BUSINESS ACTIVITY
Merchants and Manufacturers Are
Buying spariuEIy Because OF
Prospect of Revision of
TarIn Duties.

NEW YORK, Feb. H.-The semi-Stag
nant stock market Of last week reflected
the growing torpor OF the speculative spirit
and the discrimination to await the clearer
outline OF the business future before enter
ing on further stock market commitments.
The extreme dullness of the trading proved
to be not incompatible with firm tone.
from which It was inferred that owners Of
stocks we're content TO hold them for lack
Of opportunity TO market them on favorable
terms and while awaiting a revival in bust
ness and speculative activity. Such strength
as last weeks market showed was attrib-
uted largely to the demand from the bears
to cover up the short commitments made
the week before on the supposition that
pinch in the money market might follow
the heavy depletion of the cash reserves OF
the clearing house banks, and also that the
anti-Japanese agitation in California might
afford subject for disturbances of the mar
ket. As these suppositions were shown to
he groundless the bears covered their shorts
and prices rose.
Transfer of Cash.
The transfer OF cash from the clearing
house banks TO the trust companies vaults.
while 1t depleted the margin of the surplus
reserve IN the official figures. was known
to strengthen the real position so substan-
TALLY by removing the dependence OF the
trust companies upon their deposits in the
banks for their ultimate reserve require
ments that confidence in the position was
corfespondlngy enhanced and credits ac-
corded with corresponding freedom. In
stead the demand for credits is so mesger,
with prospect OF continuance of this con-
dition until more arrive trade shall develop
and force the replenishment OF reserves so
considerable by reason of inflow from the
H. 80 la, NAoA
any feeling OF anxiety over the money mar
ket conditions is prevented The fiscal op-
erations Of the government offer the only
likely source OF disturbance.
Japanese Bonds Rise.
AS for the Japanese question, the rise
In Japanese government bonds day after
day, while the. ,discusaion was in prog-
ress. was taken as the truer index of tn
situation by the financial world The
final action OF the California legislature
was accepted full confirmation of this
opinion. Foreign influences also were dis
tinctly encouraging. the visit OF the Brit
ish monarch to Berlin, the disbandmeut
OF the Bulgarian reserves and the agree.
ment between Germany and France over
Morocco all serving to dissipate anxietles
over international relations which have
been dormant influence on foreign mar
kets ever since the Bank of France began
it's long process of gold accumulation last
summer. Money markets abroad relaxed
with the realization that political motives
were not to be assumed from the policy
of the French bank
The clearing of the foreign money mar
ket situation relieved the New York mar
ket OF every insisteut, although moder-
ate. source of pressure OF liquidation Of
foreign holdings of American securities.
Delay I'm Trade Revival.
Financial opinion has settled down to
an acceptance of period OF delay in
trade revival. Returns from practically
all departments confirm the halt in activ-
ity. The iron and steel business is as
serted by the leading trade authority to
be living in part on orders taken in No
Vember and December. orders are held
up pending the adoption of the revised
duties on imports. The same complaint
comes from many other mercantile lines.
Estimates OF refined copper on hand pub
lished by the newly-organized copper pro-
ducers' association showed a less formida-
BILE surplus than rumors had indicated.
but the January production was shown TO
be 22, 600, 900 pounds in excess of the de-
Iiveries and the stocks in smelter hands
were said 10 be not included in the esti-
mate and TO be very large. The letharey
of the stock market is regarded as due
10 these conditions.
Meantime the meager demand for bank
ing facilities in commercial lines leaves
room for large bond operations and con-
stRnt new issues succeed each other in !
the market and are readily absorbed.
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