Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-05-10
Decision on Commodities
Clause Has Its Effect.
Decided Evidence Of Improved
Trade Conditions.
Hardened Tone In Time Money Mar
ket.-.Record Bank clsaFings.

New York, May 9.-The long
ed decision of the supreme court or
the validity OF the commodities law D
the Hepburn act proved the key which
unlocked the speculation in stock:
from the bonds which had been holdin.
it The mere feeling Of relief that thu
subject was disposed of played larSt
part in the effect, since the halt il
the market with each recurrence u
decision day of the court testified
the restraining effect which the sus-
pense was exercising. The advantage
to the coal roads from the practica
notification of the intent OF the act
to compel them to Inappropriate tbs
coal mining properties was sufficiently
obvious.
The stock market lawyers also rush
ed to some sweeping and loose inter-
pretations of the bearing of the de-
cision on the whole subject of corpora
ton control, reading into it practlca
immunity from the power of the gov
eminent to prevent combinations and
mergers and a repeal, in effect, of the
provisions of the antitrust law. These
assumptions were made to play nc
small part in the outbreak of specula
ton during the week and the effect
was especially marked in such securi-
ties as are affected by the exercise OF
the holding company" device. in which
class United States Steel and Union
Pacific are conspicuous. Reports dur
ing the week of proposed amendments
to the Hepburn law to make its pur-
pose effective and of cabinet confer
ences on the subject had some modi-
flying influence on the stock market
sentiment.
Another effective influence on Specu-
lative sentiment was the evidence o.
Improvement in trade conditions. not
ably in the great basic steel industry
and in other metal trades. The arrest
of the downward course of quotation
of steel products was not universal.
wire products coming in for further
cut, but it was sufficient to shape a
conviction that the expansion in tn"
demand induced by lower prices had
reached point to shift the balance
against the offered production.
The fact that bank clearingS
throughout the country for April es-
tablishes q new record is advanced as
evidence of the expansion of business.
with allowance necessary for the ac-
tive speculation going on in various
lines.
These presages of awakening trade
activity direct attention to the conSe-
uuences to enSue to the money market
of growth in the demand for funds
for mercantile uses The hardening
tone of the time money market during
the past week was in response to this
prospect. rather than to any actual
development of such demand. Lenders
are holding out for higher rates. al
though borrowers are reluctant to
acuuiesce in these demands. Plethoric
supplies of money have figured, to an
important extent, in the strength or
stocks and a restriction of supplies
might affect market quotations. even
while the more active mercantile do
mand for money would be construed
favoraby to values of securities.
The stock market showed little evil
dence of disturbance over the large
acreage of winter-killed and abandon
ed wheat fields shown by the govern
ment's report on the crops. The warm
wave which overspread the country at
the end of the week went far to re-
assure sentiment on the crop respect.