The Birmingham age-herald., 1909-02-15
STOCK MARKET
 NEEDS MORE LIFE In Spite of Dullness a Firm
 Tone Has Prevailed NO CAUSE FOR WEAKNESS Fears That Depletion of Cash Re serves Might Affect the Market.
 Bears Cautious But This
 Proves Needless.
NO CAUSE FOR WEAKNESS

New York, February 1.-The semi staRnant stock market of last week re- fiected the growing torpor of the specula- tive spirit and the determination to await the clearer outline of the business fu- ture before entering on further stock mar ket commitments. The extreme dullness of the trading proved to be not incom- patible with a firm tone, from which 1t is inferred that owners of stocks were content to hold them for lack of oppor- turity to market them on favorable terms ard while awaiting a revival in business and speculative activity. Such strength as last weeks market showed was att tributed largely to the demand from the bears to cover up the short commitments made the week before on the supposition that a pinch in the money market might follow the heavy depletion of the cash re- SCI yes of the clearing house banks ana also that the ant-Japanese agitation m California might afford subject for dis turbance of the markets As these sup positions were snown to be groundless the hears covered their shorts and prices ros.
 The transfer of cash from the clearing house banks to the trust companies vaults, while it depleted the margin or the surplus reserve in the official hg- ures, was known to strengthen the real position so substantially by removing the dependence of the trust companies upon their demands on the banks for their ultimate reserve requirement that con- fidc ,eo in the position was corresponding ly eJllalced and credits accorded with corresponding freedom. Instead the de- mand for credits Is so meagre with pros pect of continuance of this condition un- til more active trade shall develop ana the forces of replenishment or reserves so considerable by reason of inflow from the circulation to the custody of the banks that any feeling of anxiety over money market conditions is prevented. The fiscal operations of the government offer the only likely course of disturb ance.
 AS for the Japanese question, the rise in Japan government bonds day after day while tho discussion was in progress was taken as the truer index of the situation by the financial world. The final action of the Cs lifornia legislature was accepted as full acceptance of this opinion.
 Foreign influences were distinctly en- couraging, the visit of the British mon archs to Berlin, the disbandment of the Bulgarian reserves and the agreement be- tween Germany and France over Moroc- co all serving to dissipate anxieties over international relations which have been a dormant influence on foreign markets ever since the Bank of France began its long process of gold accumulation last sum- mer.
 Money markets abroad rapidly relaxed wi.h the realization that political mo- tives were not to be assumed from the policy of the French bank The clearing of the foreign money market situation re- lieved the New York market of very in- sistent although moderate, source of pres sure of liquidation of foreign holdings of American securities.
 Financial opinion has settled down to an acceptance of period of delay in trade revival Returns from practically tivity The iron and steel business is as- serted by the leading trade authority to be living in part on orders taken in November and December. Orders are held up pending the adoption of the revised duties on imports. The same complaint comes from many other mercantile lines. Estimates of refined copper in hand pub lished by the newly organized Copper Producers association shows a less for midable surplus than rumors had ndl- cated. but the January production was shown to be 22.00O0O0 pounds In excess of the deliveries, and the stocks in smelters hands were said to be not included in the estimates to be very large. The lethargy of the stock market Is regarded as due to these conditions.
 Meantime the meagre banking facilities in. commercial lines leave room for large bond operations and constant new issues succeed each other in the market and are readily absorbed