The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-01-04
FINANCIAL VIEWS
ARE OPTIMISTIC
High Prices of Securities
Promise Upward Progress
DEMAND FOR BOND ISSUES
With Excellent Investment Demand
and Ample Resources at Hand the
Outlook Is Good for Develop
ment of r. r. Properties.
DEMAND FOR BOND ISSUES

New York, January dissatisfaction with
the solid achievement of the year and
confidence in the promise of the future
are the feelings of the financial COM
munity on the threshold of the new year.
The effective expression of this feeling is
found in a level of prices of securities
near the highest for the closed year and
higher, in fact, than for 20 months past.
The depth of dependency from which
the financial world was but barely emerg-
Ing a year ago, needs only to be consid-
cred in general way to realize the wide
progress toward betterment which present
conditions represent. AS register of the
measure or this past achievement, the
stock market possesses less interest than
In its function of anticipating by specula-
ton the course of events to come
That the past achievement is fully re-
flected In the extent of the advance of
prices which has occurred is the &C.
cepted opinion of all competent observers.
the problem of the market turning rather
to question Of how far the Improvement
in conditions justly to be executed in the
future has already been covered in the
speculation The brightest hopes are based
on the complete restoration of credit
which has occurred and the resulting good
investment demand for capital flotations
The rapid absorption of new bond is
sues and the large demand in the open
market for older bond issues of all grades
is the substantial evidence of this condi-
ton. 1t is a condition of vital import
ance to the further work of rehabilitation
to be done before the full measure of for
mer prosperity is restored.
The period of depression of the past
pruning of expense accounts at every
point, both by limitation of Improvement
and extension and by postponement of
every possible outlay for keeping up
equipment on the part of the railroads
and probably there is much of such outlay
which is simply in arrears and must ulti-
mately be met With the excellent de-
mand for investment now established and
the abundant money market resources,
which are looked for early in the new
year. very large resources are expected
to be placed at the command of the great
railroad and industrial corporations for
resumption of suspended and postponed
OUTLAWS. The quickening effect of this in
duence Is expected to be felt throughout
the world of industry and business in
erhaLced consumptive demand for all
grades of products and merchandise The
stock market for some time past has been
full of rumors of changing control of
MINOR railroad systems, which the coming
period of bond fotations Is expected to
disclose
On this side of the speculative position
there is presented the possibility of exag
geration which would reveal excuses in
the future movement of prices With the
future presenting such potential prospects
of growth and improvement 1t is not to
be supposed that far-seeing and deeply
Informed capital interests should have
waited for the actual event to prepare to
take advantage of 1t. That there have
been enormous accumulations of securi-
ties on behalf of the largest capital inter-
ests all through the past year, and that
the advance In prices has been encour-
aged and fostered by every device at the
command of these powerful interests has
been the prevalent conviction in Wall
street for orths. What will be the dis
position of these large accumulations in
the progress of coming events is an i'm
pei tant question in the solution of the
future Price of movements. Large par
ticiln ton in coming new capital issues on
tie ,art of these interests Is to be ex-
peti.d. A process of conversion from
present holdings into these new issues
would be plausible supposition.
Preparations to take advantage of the
good investment demand and the coming
ease OF r.orey have been very large, both
here and abroad, and the measure of the
resources to meet these positions will
have to be adjusted. In the New York
me ney market there will have to be met
tho needs of the trust companies to bring
up Their cash reserves held in their own
vaults from 10 per cent to is per cent
by February 1. to comply with the law,
and 1t IS estimated that this will call
, for some s45.0O0,0O0. The extent to which
the revision of the tariff in prospect may
serve 10 unsettle business and halt de-
mand for products in expectation of price
CHANGES Is subject of some uneasy
conjecture.
The European political outlook is not
left out of consideration owing to the
current of uneasiness, lest, with the OPEN
ing of spring, the unquiet conditions in
the Balkans may cause an outbreak. The
condition of winter sown grains Is not
fully satisfactory and brings into view the
always important influence of the coming
years agricultural product. There IL
feeling that the property losses of the
Italian calamity may call for future ad-
iustments In the financial markets. The
situation thus briefly summarized shows
the inevitable ambiguity at all times ex-
listing in a financial prospect.