The Montgomery advertiser., 1909-09-27
FINANCIAL REVIEW

New York. Sept. 26.-The speculation In the stock market was kept unset tied last week by the inroads, present and prospective. making upon the re- serves of the banks, by disappointment of speculative productions in several influential cases and by a feeling of disquiet over the prominent place giv- en in President Tafts Western ad- dresses to the proposed program of legislation for further reform of cor poration abuses. The week started un- der the influence of the large recuper- ation of the surplus reserve shown by the banks in the weekly statement This imprssion proved transitory and the accommodating evidence that higher money rates were in prospect brought convictions.
 The advance in the official discount rate of the imperial bank of Germany operated on all the foreign money markets. and served notice of the les sened freedom with which credits for speculative use could be sought in for eign money markets by American bor- rowers.
 Private discount rates advanced in London, Paris and Berlin and the de- cline in condition of the great central banks at those centers disclosed the operation of forces of depletion at the great reserve centers. Some of the week OI Cdiue from abroad and was an additional factor in stiffening the rate of foreign exchange. The temporary effect on the currency movement of the stiffness of money rates in New York passed away. New York exchange at Chicago. which had risen to par, fell back to dis count and the interior renewed It's de- mands on New York for currency. There was a deposit at the sub-treas- Ro %ala n NavV Orleans. revealing the development of a demand for cash from a new source.
 The New York banks took hee0 of these signs of further requirements and there was a recall of credits from the stock market from time to time. The. effect on money rates were restricted only by the liquidation of stocks which kept pace with the loan contraction.
 A series of rumorS which have been made effective in speculative advances in prices were disproved In rapid suc- cession and had the effect of throwing suspicion on much of the material that was relied on for stimulating demand and on the motives of those who had set the rumors in circulation. The St. Paul stockholders took no action to- ward granting subscription rights for new securities, the Pennsylvania di- rectors refrained from a similar &C., ton. the directors of the Central Rail  road of New Jersey did not increase the dividend distribution.
 News from the industrial and husi- ness world was favorable to values with the exception of the storm dam- age in the South. which gave new impetus to the excited speculation in cotton. Eager buying of iron and large volume at rising quotations was re- ported Even the copper market en- joyed some improvement, which stiff tened prices and caused hopes of a turn in the situation in that trade. Railroad officials reported sustained trafnc mod flied to some extent the cotton and corn regions by impaired crop prospects. The weeks advices from the corn crop were encouraging and estimates of the probable final yield wore raised. The influence of these factors on the stock snecuIation proved of less force than the mere technical consideration Of the miscarriage of speculative tips" and the hardening of the money market