The Montgomery advertiser., 1909-03-01
FINANCIAL REVIEW

New York, Feb. 2s.-The stock mar ket last week underwent further vio- lent readjustment to the new condi- tions in the steel trade disclosed by the throwing open of the market to eager competition for business and the week. although a short one. was filled with turmoil and confusion.
 While 1t was not clear that the re- adjustment had been completed at the close of the week. obviously much had been. accomplished toward that end aud substantial rallies had followed. Esti- mates of the future were conflicting both as to the shaping of th> trade prospect and as to the speculative po- sition in the stock market. Uneasi- ness over the copper trade and, by in- ference, other metal trades. was added to the puzzle of the steel trade devel- opments. In none of these had there been lack of previous knowledge of 8 very unsatisfactory condition 50 far as present demand was concerned, but the necessity for a violent cut in prices and damaging scramble amongst pro- ducers to bring out business came ap- parently as a shock to speculative sent iment. This shock seemed to be felt not only by the general speculative public but by important interests in the trades themselves and the charac- ter of the selling of the stocks gave the impression of very substantial liquidation. This caused a belief that the new conditions. were unforeseen by the leading steel interests and that those interests had characterized a genuine hope that the centralized con- trol, which had been achieved in the steel industry, would be able to obvi- ate the usual course of unsettlfng price ruht tAh v,t tad previous proceeds of depression. The week saw no definite settlement reach ed for a new basis of prices and the determination was avowed by the great producers to adhere to the new policy to such lengths as should prove neces- sary to bring out orders.
 Wage reductions. possible strikes. the steel trade while awaiting the framing of a new tariff of duties on steel. the probability of demands on the railroads for lower freight rates on steel products and unnumbered oth- CT phases of the problem were talked of day after day in the excited stock market. Foreign holders of the steel industrials were as much disturbed as the owners at home and sent some heavy offerings to market. The cop per stocks came in for pressure almost as severe late in the week, although they showed some stability at first on account of a supposition that the suc- cessive reductions which have been go- ing on in the price of copper might have accomplished more gradually what was being done spasmodicaly in the steel trade. The demonstration thus afforded, of the futility of the great centralized control In separate indus tries as a means to obviate the former upheavals in the process of adjustment of changed forces of demand and sup ply threw all the industrials into some disfayor. The railroad stocks were late in yielding to the weakness and arguments were offered of benefits to accrue to them as consumers of steel materials from the cheaper prices for them. Other influences ultimately broke down the railroads, the most im- portant growing out of Government prosecutions. The undsturbed ease of the money market was intellectual to save the stock market from its periods of demoralization. but was an import ant factor in the comparative immu- nifty enjoyed by the bond division from weakness The banks met easily the very heavy demands upon them. in cluding the withdrawal of the $30,0O0,- 900 Government deposits recalled by the Treasury Department. large mart of this payment was effected by the interior banks by drafts on their New York correspondents. The weeks outgo of gold to South America also proved large. Bankers are not with out expectation that money rates will be affected in the future by the fac tors.