The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-03-01
REIMBURSEMENT IS
RULE OF The WEEK
Caused By New Condition In
Steel Trade
IMPROVEMENT EXPECTED
Many Things Conspire to Shake Sta
biity of Stock Market During the
Week-Banks Meet Large
Demands Easily.

New York. February 2S.-The stock
market last week underwent a further
violent readjustment to the new con-
ditions in the steel trade disclosed by
the throwing open of the market to
eager competition for business and the
week, although short one, was filed
with tumoil and confusion. While it
was not clear that the readjustment
had been completed at the close of
the week obviously much had been ac-
complished toward that end and sub
stantial rallies had followed. Esti-
mates of the future were conflicting
both as to the shaping of the trade
prospect and as to the speculative
position in the stock market Uneasi-
ness over the copper trade and, by in
ference, other metal trades, was added
to the puzzle of the steel trade de-
velopments.
In none of these had there been lack
of previous knowledge Of a very I'M
satisfactory condition so far as pres
ent demand was concerned but the ne
cessity for a violent cut in prices and
damag ing scramble amongst producers
to bring out business, came apparently
as a shock to speculative sentiment.
This shock seemed to be felt not only
by the general speculative public but
by important interests in the trades,
and the character of the selling of the
stocks gave the impression of very
substantial liquidation. This caused a
belief that conditions were unforeseen
by the leading steel interests, and that
those interests had cherished a genuine
hope that the centralized control, which
had been achieved in the steel indus
try would be able to obviate the usual
course of unsettling price movements
which have accompanied previous
periods of depression.
No Definite Settlement.
The week saw no definite settlement
reached for a new basis of prices and
the determination was ayowed by the
great producers to adhere to the new
policy to such lengths as should prove
necessary to bring out orders
Wage reductions, possible strikes, the
danger of prolonged stagnation in the
trade while awaiting the framing of a
new tariff of duties on steel, the proba-
bility of demands on the railroads for
lower freight rates on steel products
and unnumbered other phases of the
problem were talked of day after day
in the excited stock market. Foreign
holders of the steel industrials were
as much disturbed as the owners at
home and sent some heavy offerings to
ct mo In fo
pressure almost as severe late in the
week, alth ough they showed some sta
bility at first appearance supposition
that the successive reductions which
have been going on in the price of cop
per might have accomplish ed more
gradually what was being done spas
medically in the steel trade.
Centralized Control.
The demonstration thus afforded of
futility of the great centralized control
in separate industries as a means to
obviate the former convulsive uph
in the process of adjustment. of changed
forces of demand and supply threw all
the industrials into some disfavor. The
railroad stocks were late in yielding
to the weakness and arguments were
offered of benefits to accrue to them as
consumers of steel materials from the
cheaper prices for them. other in
f1uences ultimately broke down the
railroads, the most important growing
out of government prosecutions. The
undisturbed ease of the money market
was Intellectual to save the stock mar
ket from its periods of Generalization,
but was an important factor in the
comparative immunity enjoyed by the
bond division from weakness. The
banks met easily the very heavy de-
mands upon them, including the with
drawal of the $40, 900 government
deposits recalled by the treasury de-
partment.
The weeks outgo of gold to South
America also proved large. Bankers are
not without expectation that money
rates will be affected in theNuture by
these factors.