Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-09-27

| New York, Sept. 26.--Thc speculation
| in the stock market WAS kept unsettled
| last week by the inroadS, present and
| prospective, making upon the reserves
of the banks by disappointment of
| speculative predictions III several in
| iluential cases and Ivy u fct ling of dis
quiet over the prominent place given
| in President Taft'S Western addresses
70 the proroseG program ~ Legislation
| for further reform of corporation
abuses. The week started under the
| influence of the large rccrpcr2tjon Of
| the surplus reserve shown by the
| banks IT, the weekly statement whicl,
was published after busn,s ~ for the
| previous week had been finished ut the
Stock Exchange.
This impression proved traHsitory
ana the accommodating evidence that
| higher money rates were in prospect
! thc official discount rate of the I'M
| ocral Bank of Germany operated on
al trc IJreSn money markets and
| served n ,ticc of the leS3encd freedom
with which credits Cor speculative use
| could he sought in foreign money mar
iicts Ey American lorroW crs. Private
Paris and Berlin and the decline in
condition cf the great central banks at
/ those ccnters .lisclos I'd tho oncration Of
forces Of d"plt ton at the great reserve
| &c ltclS.
The enormous contraction in loans
which the New York banks had eff
| fccted the week before was known TO
have been accomplished by large trans
| "a -.
this course of the account of these
pointed to the limitation of this source
| of relief. Some of the weeks liuuida
ton of securities came from abroad
and was an additional factor in stiff
fleming the rate of foreign exchange
| i'm the New York market. The tenn
porary effort on the currency move
ment of the stiffness of money rates
in New York passed away.
New York exchange at Chicago
which had risen to par fell back to 4
discount and the interior renewed its
demands on New York for currency.
There was a deposit at the sub-treas-
ury for Geographic transfer to New
Orleans. vealinG the development o.
| a demand for cash from g, new source.
| The New York banks, taking heed
| Of these signs of further requirements,
| were inclined to curtail their loan ac-
count, ard there was recall OF credits
| from the stock market from time to
| time. The effect on money rates was
restricted only by the liquidation or
stocks which kept pace with the loan
| contraction.
series of rumors. which have been
made effective in speculative advances in
prices were dspreved in rapid success
| sion, and had the effect of throwing Sus-
picion on much of the material that was
| relied on for stimulating demand ana
on the motives of those who had set
the rumors in circulation. The st. PAU
stockholders met and took no action to-
wards granting subscription rights Tor
new securities the Pennsylvania direc-
tcrs refrained from a similar action and.
OF even more effect on the speculation
the directors of the Central Railroad OF
Now Jersey made no increase in the rate
of dividend distribution. There had been
On animated speculation based on the
cxpected action in each of these cases
and the conviction was born in upon the
Ibuvers of the stocks that they had been
Imised.
Ar irregular intervals there were evil
dences of supporting measures in the
market. but they were fitful and ineffec-
five on the general list. although carry
ine. United States Steel at one time to
rev record price at s61a.
News fror: .ha industrial and business
world was favorable to values, with tue
iexception of the damage wrought by tne
GREAT storm in the South which gave
new impetus to the excited speculation
! in cotton Eager buying of iron IN ia'se
volume at rising quotations was report
cd and even the copper market ehJoSeu
some Improvement from an awahe"S,
demand. This stiffened prices ana cause"
homes of a turn in the situation III 'iie
CORNER trade which has been drag OH
the general situation.
Railroad officials reported sustaiiieu
traffic modified to some extent IN the
cotton and corn regions by impaired crop
prospects. The weeks advices from tne
corn crop were encouraging ana estl-
mates Of the probable final yield were
raised The influence Of these factors ""