The Birmingham age-herald., 1909-05-03
CONFIDENCE IN
 STOCK MARKET
Prices FIuctuate Rapidly But
 Advance For The Week
WAITING ON THE TARIFF
European Situation and Delay in Set ting Tariff Matters Keeps Mar ket Constantly Changing
 and Unsettled.

New York, May 2-The speculative sentiment as reflected in the action of the stock market underwent some unsettle- ment in the early part of last week, but price recoveries lated indicated reinstate- ment of confidence. It is quite generally recognized that the present position owes much to the money situation, and the wavering of prices was traceable to this influence to a large extent. The close of the preceding week had presented a hardening in the call money rate to per cent, the highest since the first week in January of this year. The bank state ment made it clear that the demand for credits in connection with the syndicate subscriptions to new bond issues had en- croached on supplies to an extent that had made bankers more cautious in ex- tending accommodations for speculative purposes.
 The withdrawal of s2,0o0,000 gold for shipment to France pointed to a new force of depletion of banking supplies. At the same time it was known that preparations must be made for financing the May payments, and 1t was sup posed that an advance in the call money rate during the week might be expected. The effect was manifest, especially in a number of stocks of comparatively small volume and subject to control by stock market pools which had been violently moved upward in the recent past. With drawal of support left them open to rapid declines on small sales. Suspicion was , aroused toward the market as a whole by this evidence of artificial games in special stocks. In some instances there were blunt denials made by officials of rumors of intended dividend increases, which had been used in forcing up prices in such cases.
 The final stages of the transition of the sovereignty in Turkey caused some uneasiness abroad, which was reflected In the local market A heavy tone de- veloped in the coalers when 1t was point ed out that large surplus of anthra- cite remained to be sold in the event of the expected settlement with the miners of a wage agreement The revival of anxiety over the prospects of delay in the enactment of the tariff revision meas ure contributed to the depression. An other factor against the market was the
 
 wheat crop. which gained influence from the renewed upturn in the price of wheat.
 A powerful factor in soothing these ap- prehensions was the easing of the money market. The increased requirement here had the effect of attracting funds from outside sources and of putting stop to the gold export movement. Not only did the call loan rate recede, but the time loan rates, after being marked up frac- tion, reacted. The stock market was prompt to respond to the evidence that the easy condition of the money market was not to be disturbed immediately.
 A decisive factor in the later improve ment of speculative sentiment was the conviction that conditions in the steel in- dustry were undergoing a turn for the better. The publication of the United States Steel earnings for the first quar- ter of the year helped to this feeling, as those earnings proved somewhat better than the preliminary estimates.
 Of greater effect was the report of a stiffening of prices of several classes of steel products. Reports were somewhat conflicting as to the extent to which this had gone, but that the policy of indis- criminate price cutting to secure new business had been abandoned was known.
 The effect to follow this tentative policy fin bringing in a demand waiting for a definite turn in the situation was awaited with great interest. Great importance would be attached to the development of a ne wdemand for steel products to a point which would over-balance the of ferings. The hopefulness in this matter was helped by the placing of a number of orders for railroad equipments of vari- ous kinds by several big roads,