The Birmingham age-herald., 1909-08-09
Prices Are Above All Records
 Since Early In 1908
CROP OUTLOOK VERY GOOD
Prosperity of the Farmer Is Real Basis of Strength and In Spite of Re- ported Shortness In Some
 Crop Outlook is Good.

New York, August S.-Last week in the stock market saw prices carried to the highest average level touched since early In 906 when the highest prices in the history of the New York stock exchange were touched. There Is considerable list of prominent ac- tive stocks which made absolute rec ords, including representatives of such various groups as Union Pacific, United States Steel and Reading. The com parison of the average price of the 20 most active railroad stocks and the 12 most active industries shows high point last week of 132S5 for railroads and 10s for industrials com pared with 13s.ss for railroads and 103 for industrials in January of 1908.
 Retaliation of the close approximation thus made to the market level during the speculative anticipation of the country's most prosperous period in duced a cautious spirit in the specula- tion last week and prompted some to a capeful analysis of the extent to which the business recovery had actually fgone as warrant for such prices of securities. There were cited in support of the validity of the price level a number of striking facts. First prom thence is held by the brilliant outlook for the countrys agricultural produc- tion. The conviction holds that this will exceed in value that of any pre- ceding year. The early shortcomings of the winter wheat nave been lessened by succeeding developments and the excellent promise for the spring wheat keeps up the hopes of a total crop of good volume. Expectations of the corn crop steadily grow and the government crop report to be given out at the open ing of this week is confidently looked for to confirm he sed prospects or the cereal crops. Last weeks cotton crop report left no room for question of the serious impairment of the prob able yield of the crop and the dis advantage of high prices for cotton products which will result is recog- nized.
 High prices for wheat also will count for agricultural prosperity.
 The stock market recognizes no broad CT and surer foundation on which to rear stock prices than the prosperity of the farming communities. The free move ment Of wheat to market corroborates the hopeful sentiment regarding the grain crops and insures abatement of the sur plusage of idle freight cars. This infiu- ence spreads into the steel industry and large orders for new equipment are com Ing from the railroads to that branch of the industry. Sentiment regarding the great basic iron and steel industry Is most sanguine. and constitutes an important factor in the speculative position in the stock market. record output of iron by the United States Steel corporation for July is a fact relied on to buttress this sentiment The great confidence pre- valent in the steel trade neutralizes the less cheerful conditions in the cop per trade, where sustained production keeps ahead of actual consumption
 In general mercantile lines a quicken- ing of activity is already manifest in the heavy bank clearings throughout the country and in the increasing volume of mercantile paper offered to bankers for discount. It is believed that the actual passage of the tariff bill will release large orders from merchants which have been held back In the desire to know def mite results before making business ven lures.
 The money market position and outlook gains increased interest on account of speculative position, which Is largely de- pendent on 1t. The beginning of the with drawal of funds for use in the interior which Is seasonable at this time of the harvests, is making its 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 f1otations is considered 1t is expected that demand from foreign in- vestors will aid in solving that problem The export of agricultural products also Is relied on to make exchange and bring relief to the money market In case of threatened stringency, which is not ex- pected to develop.