The Montgomery advertiser., 1909-10-11
FINANCIAL REVIEW

New York, Oct. 1o.-The develop. ments in the banking position were s' curred in the stock market last week The vulnerable speculative posNioE. E
 which these developments uncovered IT United States Steel had lively senu- mental effect on the whole specuiatiVe
 Consideration was jared by the dem. onstration that the movement Tn Unite. States Steel was subject to the usual laws of the unbridied speculation of following given to reckless excessef without sufficient resources to protect their positions In case, of setback, Undue reliance on borrowed capita! and a growing credulousness of favor able rumors, however extravagant worked their usual consequences
 When the banks began to call loan; and hard-pressed borrowers ran the cal loan rate to per cent there appeared to below %. many of whom had at eagerly bought the stock up to s< 7-S on Monday, the accompaniment of con fident predictions that the price would
 To justify this confidence. there war emitted vague predictions of some ine which was to happen and which woulc offer rich profits to stockholders in ar accumulated form. It was asserted also that the resources of the pool which was accommodating United State, Steel were so enormous and their in. formation of coming events was so ac. curate that there could be no mistakt marked out. The power of the conduc. tors of the United States Steel move. ment had been so often demonstrated in the course of the almost continuous rise in the price of the stock from thr forties to above ninety. that their in. vulnerability had come to be regard : ed almost as an article of faith with san element in the speculation. When lAw day to 90 l-3, after having touchsc % T-s on Monday and then on Wed. nesday to s7 1-2. the whole market was thrown into considerable disorder financial powers backing the Unitec States Steel movement asserted theiY ability and came into the call loan market with millions of resour urcer of liquidation and the fall in prices.
 The violent break in foreign ex. change rates coincident with this ap- pearance of a new supply of credifs In of the point of resort for securing these credits- The inference was con. nrmed by the prompt action of the Bank ot England in raising the officiai cent. The effects were at once mani- fest throughout all money markets. probable further advance by the rm- perlAi Bank of Germany was discussed L\0n00n that . further advance in the rate would be made if necessary to stop the drain of gold from the London mar ket.
 The placing of obstacles tei addition. al borrowing abroad complicated the speculative position fin the stock mar ket in view of the continued demand upon the New York banks incident 10 ekpanding trade and crop movements tn the interior Interest rates rose in air departments 10 the highest level touched since the stringency of the after-panic perfod&
 The frightening of the money market took away the effect on securities of any favorable developments such as the record activity in the iron and steel trade. the increase fa the Atchison and other dividenda and the more cheerful feeling over the corn crop promise The dying down of demand from con- sumers for refined copper and evidence of renewed accumulation of surplus stocks of that metal gave occasion for much dissatistaction. The serious im- pairment of the cotton crop shown by the Government report of condition made another diBcordant note in the general harmony of trade, induRtrfat and agricultural Rdvices.