The Montgomery advertiser., 1909-06-28
FINANCIAL REVIEW

New York, June 27.--The stock mar
ket last week got an effective shak-
ing in the course of which the weak
ness took on an appearance of demon
alization. The second array of this
break was shown later in the effective
rally to a level rather above that at
which the preceding week ended. The
whole episode represented rather a
clearing up of speculative accounts
than the effect of any potent factor In
the course of events affecting values.
The result nevertheless was to cause
settlement Of the speculative sentiment
usual in such conditions and which
finds expression in the varying views
amongst professional operators as to
the healthfulness Of the reaction or its
significance as marking the culmina-
ton of an upward movement The
weak technical position into which the
market has fallen undoubtedly was af-
fected largely by the great profits
which had accrued and which prompt
ed their realization by sales. A distri-
button of speculative holdings into
weak hands had been effected in that
way. Meantime, many of the more
powerful forces in the market had re-
tired for a period for opportunity to
enjoy summer vacations and foreign
travel Such an influence, while apart
from the purely financial considera-
lions governing a market, Is to be
reck oned with in estimating its action.
It may be taken as presage of COM
ing period of abstention from market
operations by such forces which would
promise dullness and quiet. The with
drawai of such force Is a presumption
of some dissatisfaction with promises
for future advantage as we'll as a de-
sire to realize benefits already accrued.
Fears for the stability of prices at the
high level to which they had been
pushed was an element in this dissat-
isfaction. A violent reaction in price
of refined copper caused by the dis
closure of the heavy increase OF stocks
in Europe, was one illustration of the
doubt that existed
A discrepancy was pointed out be-
tween the reports of large orders from
railroads for new freight cars and the
increase in the already large total of
freight cars in the country lying idle.
On the side of the money situation the
persistent ease of interest rates In the
face OF every recruitment and demand.
forms a factor calculated to sustain
the stock speculation. The July set
Elements will be heavy and the exist
ing surplus reserve of the New York
banks is not large. Yet, call loan rates
hang at two per cent or below and
rates for time loans have receded du-
ring the week. Large sums, estimated
at as high as 100000, 900. have been
borrowed abroad and the active demand
for exchange In connection with the
London stock market settlements show
that large amounts of stock are heIu
in London for New York account. Gold
went out during the week. both to
South America and Europe. There are
large new issues OF securities In pros
pect in connection with necessary n
nancing of railroad and other corpor-
atoms.
. Final repressive effect on the specu-
lation came from Washington, account
of the proposed tax on net earnings of
corporations and the incidental effects
to follow from the law. The extent of
rebounds in prices of stocks and the
effect produced by the circulation of
many revided reports OF projects In
tended by several railroad companies,
show the vitality remaining in the
speculation and keep the market two
sided and irregular from day to day.