Omaha daily bee., 1909-05-17
Some Fear that Part of Buying is by
Spectators.
FOREIGN INFLUENCES FAVORABLE
stock Market for the week II
Animnted and Makes an
Occasional show of
strength.

NEW YORK. May 16-A feeling of conf
dence over the progress of business ana
Industrial development prevailed In the
financial community last week. That events
were shaping towards a restoration or pros
perity was the general conviction. In the
securities and money markets the effect Oh
this conviction made itself felt, but was
tempered by the extent to which the ahuci'
patton Of this condition had already gone III
the speculation Hence the uneVenins'
Irregular price movement which left the
tone Of the stock market confused and un-
certain
Evidences OF business Improvement came
from practically all sections. Special I'M
portance was attached to the advices from
the metal trades The April statistics OF
the Copper Products association showed
that flhe deliveries had taken care of all
but less than 100000 pounds OF the months
production. while the rate of production
was fully maintained over all previous
months. Reports OF continued heavy sell
ing of refined copper promised turn In
the heavy accumulation Of surplus stocks
OF copper which has been going on for
months and depressing the market and the
outlook for that metal. insufficient specu-
latlve condition in the stock market caused
tlfe copper securities themselves to sell off
on the publication of this encouraging ex-
hibit, owing TO the large buying of those
stocks which has been done in anticipation
of this showing. Iron and steel trade
authorities gave testimony to the growth Of
sounder conditions In that and growing
hopefulness over the future. There was,
however, some apprehension in this trade
that recent buying represented, to some ex-
pA atockiun M
future needs that would leave a dull period
TO follow In the trade.
Conditions governing the crop prospects
were regarded as little improved, owing to
the state OF the weather. Returns of rail-
road earnings : Indicated expansions in.
freight traffic. Expanding bank ciearings
and an increasing supply Of mercantile
paper offered to bankers were another in
dex Of the reviving tendency of trade.
Foreign Influences Favorable.
Influences from abroad were favorable,
the London market taking encouragement
from the large applications for the London
county council loan and embarkng on an
animated speculation in Kaffir mining
stocks. The restricted scope of the strike
Of French government employees and the
evidence of control of the situation by the
authorities quieted an anxiety that more
sinister events might grow out Of that dis
turbance.
The stock market OF the week was anil
mated and made an occasional show OF
decided strength. The advances were so
broken by reactions, however, and the per-
slsting rise was so confined within a few
stocks that close analysis Of price move
nnents In details shows long list of i'm
pcrtant securities that were little changed
by the weeks operations. The coalers
supplied the sensational feature of the mar
ket and gave IL the most of it's buoyancy
and strength. The spectacular rise In this
group was not accounted for by any actual
happening, but by abundant rumors al
leging a project to disappropriate the coal
properties and distribute the proceeds TO
stockholders OF the railroads. The restraint
/ on the general price movement argued a
large speculative liquidation. The motive
for these realizing sales was sought in the
high level TO which prices have attained,
compared even with the past periods OF
speculative initiation. The average price
level is computed to exceed any touched
since January OF 1907. The buying which
has brought about these high prices is
founded on banking credit to an impor-
tAnt degree, Loans OF the New York clear
Ing house banks are close to the highest
figures in the history of the institution.
Mercantile demands for banking facilities
are growing and great corporation loans
remain to be provided for. Lenders of
money for fixed periods are raising inter
est rates I'm anticipation OF the overweight
ing Of future demands measured to the
supply. Diversion Of money Tor such needs
would prompt Withdrawals from employ
ment for speculation and might force SELL
In . nf