The Montgomery advertiser., 1909-05-03
CONFIDENCE
REINSTATED
Prices Recover In Stock
Market.
EASING OF MONEY SITUATION
The Cali And Time Loan Rates
Recede.
A Decisive Factor IN Improvem<nt Of
speculative Sentiment was Cea-
yictioa That the steel Industry
/ Was Improvins.
EASING OF MONEY SITUATION

new YORK. May z.--The speculative
sentiment as reflected in the action Of
the stock market underwent some UNI
settlement in the early part Of last
week, but price recoveries later indi-
Gated reinstatement Of confidence.
II 10 quite generally recognized that
the present position. owes much to the
money situation and the waverfng of
prices was traceable to this influence
to a large extent. The close OF the
preceding week had presented q hard
ening in the call money rate to 8 per
cent. the highest since the. frst week
In January OF this year. The bank
statement made II clear that the de-
mand for credits in connection 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 $2.000,0oo gold
for the shipment to France pointed to
o new force Of depletion OF banking
supplies At the same time II was
known that preparations must be made
for financing the May payments and
1t was supposed that an advance In the
call money rate during the week might
be expected. The effect was manifest
especially in q number OF stocks of
comparatively small volume and sub
tect to control by stock market pools
which have been violently moved up
ward in the recent past. Withdrawal
Of support left them open to rapid de-
clines on small sales. Suspicion was
aroused towards the market as whole
by this evidence of artificial conditions
in special stocks. In some instances
there were blunt deniais made by Of
ficials of rumors of intended dividend
increases, which had been used In
forcing up prices in such cases. The
fnaI stages Of the transition OF the
sovereignty in Turkey caused sorne un-
easiness abroad which was reflected In
the local market. A heavy tone de-
veloped In the coalers. when II was
pointed out that q large surplus o.
anthracite remained to be sold IN the
event OF the expected settlement with
the miners Of a wage agreement.
The revival Of anxiety over the pros
meets of defay in the enactment OF the
tariff revision measure contributed 70
the depression. Another factor against
the market was the unfavorable weaih-
err conditions for the wheat crop, when
gained influence from the renewed up
turn in the price of wheat
a powerful factor in the Soothing
Of these gapprehensions was the easing
Of the money market. The increased
requirement here had the emect OF at
tracing funds from outside sources
and of putting a stop to the gold AK
| port movement. Not only did, the cali
| loan rate recede, but the time loan
rates. after being marked up frae-
tion. reacted. The stock market was
nronnpt TO respond to the evidence that
the easy condition OF the money mar
ket was not TO be disturbed 'mmedi-
A decisive factor in the later i'm
nrovement Of speculative sentiment Yves
fha conviction that conditions In the
steel Industry were undergoing turn
FOR The better. The publication OF the
limited States steel earnings Tor the
0rst quarter of the year helped to this
feeling as those earnings proved SONG
what better than the preliminary ese-
OF greater erect was the reDort Of a
e.iyenin9 OF ptiees Of several classes
~ .teel products. Reports were some
whst condicting as to the extent to
which this had gone, but that the POL
sev Of indiscriminafe price cutting to
secure new business had been Aband On
ed was known.
The effect to follow this tentative
noI,cv In bringing In demand walt
trg Tor a definite turn In the situation
xvsa awaited with great interest. Great
srrnortance would be attached to the
Navelonpnent OF a new demand for steel
rrodueta 10 n point which woul5 over
kaIarcs the offerings. The hopefulness
y, this matter was helped by the plac-
ing Of a number OF orders for railroad
equipment OF various kinds by several
hfq roads