The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-08-23
REVIEW OF WEEK.
IN STOCK MARKET
Severe Declines Are Noted In
the Leading Issues
RISING TIDE IN BUSINESS
Money Shows Tendency To Go Higher
and Bond Dealers Are Figuring
on an Active Market
For Securities.
RISING TIDE IN BUSINESS

New York, August 22-Transactions
averaging well above 100000 shares is the
record in brief for the week on the stock
exchange. Prices of dozen of the more
important issues receded from to IS
points. The severest declines were re-
corded by the Hartman issues Mr.. Har-
riman's state of health was the pivot
around which the entire market gyrated
in rather spectacular fashion.
1t cannot be said that the declines bore
any relation to the general business OF
the country, but rather that they fol-
lowed too rapid discountng of prosper
ity and proposed financial and railroad
deals
Just five issues-Union Pacific Southern
Pacific, New York Central, Reading and
United States Steel-have made up the
great bulk of the weeks active opera
tons. Prices now average about points
lower than a week ago, and to that ex-
tent the market is so much better off
The best opinion is that 1t needs to settle
down before 1t can absorb and digest
stocks offered
The general trade outlook is most en-
couraging, the volume of and orders in
the hands of merchants and manufac-
turers being probably greater than at any
time since the fall of 1907. There is every
prospect of a rising tide in business and
Of unprecedented activity, this coming
winter If not before. The enactment of
the new tariff has been followed by
release of orders sufficient to raise total
activities 10 to % points above the level
of July The transportation companies
are bending their energies to meet the
coming revival of trade and the demand
for new cars and engines has led to
some large equipment orders in the past
fortnight. In the last week contracts for
10000 tons of steel rails also were
awarded. Traffic officials of western
roads are assembling cars at all the grain
centers, and it is their stated belief that
October will bring a car famine.
Movements of merchandise are steadily
increasing, while railroad earnings, after
some declines in June and the early parts
of July. again are rising, and now are
well in advance of last year The feature
of the returns for the fiscal year is the
large expansion shown in net earnings
in comparison with the small gross earn
ings. To cite a case in point, the Louis
Vile and Nashville railroad, with about
100000 more revenue than in 1907-0S, re-
ported a surplus of over $4.441 ,00O as
against a deficit, after dividends, in the
previous year, of $4,000.
Money shows a further tendency to adj
vance. Loans maturing at the end of the
year, as well as five and six months, are
being made at 4 per cent with lenders
more careful as to the character of col
lateral. The feature of the market is the
increased mercantile demand. New York
exchange at Chicago has been 30 cents
discount, with western bankers drawing
down their balance here, preparatory to
even greater demand when the crop
movement gathers full swing. 1t is be-
lieved, however, that money will not be
more than moderately firm at the end
of the year, and bond dealers already are
figuring on an active market for invest
ment securities in the coming months on
the basis of loan rates.
Gold exports to South America and Can
ada were feature last week.
Foreign exchange is still subject to the
influence of sales against future exports
OF grain and cotton and of security bills.
The July foreign trade statement again
was unfavorable in that imports exceeded
exports by nearly sSo.OOo,0oo Europe is
said to be exhibiting some uneasiness
over the amount of American borrowings
in London and Paris These have been
estimated as high as $500. 100000. which is
probably more than double the amount
OF our obligations.
Much encouragement Is derived from an
exhaustive report on American railroads.
issued by the London "Statisti." The re-
port is more optimistic and offers numer-
Gus reasons for believing that this coun-
/ try Is on the eve of a period of unex-
ampled prosperity