The Montgomery advertiser., 1909-08-09
FINANCIAL REVIEW

torks Aug. S.-Last week in
70 the higher average level touched
since early in 1905, when the hirhesf
PPtdces In the history of the New York
~ S.ock ca Excsnange were touched. There
TIVE tive stocks which made absolute fec-
ords. including representatives of such
s statea s groups as Enior Pacific. United
Sar;sen steei and Reading. The COM
twenty most active railroad stocks and
the twelve, most active industrials
shows high point last week Of
'dustrials, compared with 1855 for
railroads and los for tndustrials in
January Of 1906.
.,d Realization LIZA. q the close spproxima::
during the speculative anticipation OF
the country's most prosperous period
induced cautious spirit in the specu-
iation last week and prompted some
TO careful analysis of the extent to
which the business recovery had ac-
tually gone. as q warrant for such
prices OF securities. There were cited
ms, IN support Of the validity Of the price
prominence is Held by the brilliant
outlook for the country's AGRICULTURAL
production. The conviction holds that
p pns aim ss T Tsus sst of any
Of the winter wheat have been less
sened by succeeding developments and
the excellent promise for the. spring
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 conn.
prospects Of the cereal crops. Last
weeks cotton crop. report left no
room for question q the serious Inn
crop and the disadvantage Of high
prices for cotton products which will
result. is recognized.
High prices for wheat also viii
The stock market recognizes no
broader ana surer foundation on
which to rear stock prices than the
prosperity of the farming communi-
market corroborates the hopeful sen.
timent regarding the grain crops and
insures abatement of the surplusage
of idle freight cars. This infiuence
large orders for new equipment are
coming from the railroads to that
branch Of the industry. Sentiment re.
garding the great Great basic iron and steel
stitutes an important factor In the
speculative position in the stock mar.
ket. A record output of iron by the
July is fact relied on to buttress
this sentiment. The great confidence
prevalent in the steel trade neutralixes
the less cheerful cOndltion9 IN Ih0 cop
per trade, where sustained production
keeps ahead of actual consumption.
In general mercantile lines q quick
ening of activity In already manifest
in the heavy bank cleartngs through
out the country and In the increas-
ing volume OF mercantile paper offered
to bankers for discount. 1t Is be-
lieved that the actual passage OF the
tariff bill will realize large orders
from merchants (which have been held
back in the desire to know definite
results before making business ven-
lures.
The money market position and out
look gains increased interest on ao-
count of speculative position, which Is
largely dependent on It,. The Begin
ming of the withdrawal Of funds for
use in the interior, which IL seasonable
at this time of the harvests. 10 making
it's influence felt on bank reserves
and on time money rates.
Demand for time loans carrying
over the end of the year has become
active and bankers expect to see rates
rise from this time. until then. The
possible complication OF requirements
for large new capital hotations is con-
sldered. 1t is expected that demand
for foreign investors will aid in soly-
ing that problem. Tie export of agrt-
cultural products also is relied on to
make exchange and bring relief to
the money market in case OF threat
ened stringency. which is not expected
to develop.