Omaha daily bee., 1909-05-03
SMALLER ISSUES ARE. z7TED
Withdrawal Of Support L eem
Open to Quick DeclYs
MONEY SITUATION BIG /,
Withdrawal Of Gold for Export
Causes Rise in Rates.
IT EASES LATER IN WEEK
Funds Come from Interior aad After
Month-End Requirements Are Met
Rates Decline---Rise in steel
Is of Good Eject.

NEW YORK, May 2-The speculative
sentiment as reflected in the action OF the
stock market underwent some unsettle-
ment in the early part of last week, but
price recoveries later indicated a reinstate-
nent of confidence. 1t is quite generally
recognized that the present position is
much to the money situation and the wav-
ering Of prices was tracesble to this in
huence TO q large extent. The close of the
preceding week had presented a hardening
In the cali money rate to 3 per cent the
highest since the first week In January
or this year The bank statement made II
clear that the demand for credits in CON
nection with the syndicate subscriptions to
new bond issues had encroached on supplies
TO an extent that had made bankers more
cautious in extending accommodations for
speculative purposes. The withdrawal of
s2.ooo,0OO gold for shipment to France pointed
20 new force of depletion OF banking sup
plies. At the same time It was known that
preparations must be made for financing
the May payments and It was supposed
that an advance in the call money rate dur
ing the week might be expected.
Smaller stocks Affected.
The effect was manifest, especially in a
number OF stocks of comparatively small
NuiuHlo SUBJECT 10 control by stock
market pools, which had been violently
moved upward in the recent past With
drawal of support left them open to quick
declines of small sales Suspicion was
aroused towards the market as a whole by
this evidence of artificial conditions in
special stocks. In some instances there
were blunt denials made by officials of
rumoTs of intended dividend increases
which had been used in forcing up prices
In such cases. The final stages OF the
transfer OF sovereignty IN Turkey caused
sou'e uneasiness abroad which was reflected
tn the local market.
heavy tone developed IN the coalets, who
pointed out that large surplus OF anthra-
cite remained to be sold in the event of
tho expected settlement with the miners
of wage agreement The revival of the
tariff revision measure contributed to the
depression. Another factor against the
market was the unfavorable weather con
ditions for the wheat crop, which gained
influence from the renewed upturn in the
price OF wheat.
Money Market Easier.
A powerful factor in soothing these ap-
prehensions was the easing of the money
market. The increased requirements here
hade the effect OF attracting funds from
a
gold export movement. Not only did the
call loan rate recede, but time loan rates
after being marked up fraction, reacted
The stock market prompt to respond
10 this evidence that the easy condition
OF the money market was not to De dis
turbed Immediately.
A decisive factor in the latter improve
ments of speculative sentiment was the
conviction that conditions in the steel in
dustry we're undergoing a turn for the bet
ter. The publication of the United States
Steel earnings for the first quarter of the
year helped TO this feeling as those earn
ings proved somewhat better than the pre-
liminary estimates.
steel Prices Advance,
OF greater effect, the report of a
stiffening OF prices on several OF the steel
products. Reports were somewhat conflict
ms as TO the extent to which this had
gone, but that the policy of indiscrminste te
price cutting to secure new business had
been abandoned, was known The effect
20 follow this tentative policy in bringing
in a demand waiting for a definite turn
in the situation was awaited with great in
terest. Great Importance would be at
tached 10 the development of new demand
for steel products TO point which won Id
overbslance the offerings. new stage
in the progress OF restoration of normal
trade conditions would be recognized in
such a condition. The hppefulness in this
matter was helped by the placing OF a
number of orders for railroad equipmen,
portsnt railroad systems.