Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-01-04
.Financiers Like the Out
look For Present Year.
They Are Also Pleased with
Business Of Past Year.
Growth and Improvement Seem
Likely for the Future.

New York, Jan. dissatisfaction with
tho achievement of the year past and
confidence in the promise of the future
are the feelings of the financial commu-
i.ity on the threshold of the new year.
me effective expression of this feeling
VA found in level of prices of securi-
lies near the highest for the closed
lar and higher in fact than for 20
'"Nnths past The depth of dependency
= ON which the financial world was but
barely emerging year ago needs on
"A tn be considered in a general way to
r-al'ze the wide progress towards bet
,rfuent which present conditions rep
r's"llt AS register of the measure OF
This last achievement. the stock mar
hot Possesses less interest than in its
r'nc;ion of anticipating by speculation
t1c course Of events to come.
That the past achievement is fully
reelected in the cXt2nt of the advance
- prices Which has occurred is the ac-
r'ptod opinion of all competent observ-
rs, the problem of the market turning
rather to the question how far the inn
M ovement in conditions justly to be
nxpected in the future has already been
tvered in the speculation. The bright
est hopes are based on the complete
rn> toration of credit which has oc-
CURED and the resulting good invest
ment demand for capital flotation
which is evidenced. The rapid absorp-
ton of new bond issues and the large
demand i'll the open market for older
bord issues Of all grades is the sub
stantial evidence of this condition. 1t
is condition Of vital Importance to the
further work of rehabilitation to be
done before the full measure of former
prosperity is restored. The period of
depression of the past year has been
gi,-en over to a drastic pruning of eX-
pense accounts at every point both by
limitation of Improvement and extern
sion and by postponement of every
possible outlay for keeping up equip
ment On the part of the railroads es-
pecially there is much of such outlay
which is simply in arrears and must
ultimately be met With the excellent
demand for investment now estab-
lished and the abundant money mar
ket resources which are looked for
early in the new year very large re-
sources are expected to be placed at the
command of the great railroad and
industrial corporations for resumption
OF suspended and postponed OUTLAWS.
The ouickening effect of this influence
is expected to be felt throughout the
world of industry and business is en-
HANGED hy comsump tive demand for all
grades of product and merchandise.
With the future presenting such po-
tential prospects of growth and I'M
it is not to be supposed that
far-sceing and deeply informed CAPT.
tai Centers should have waited for the
actual event to prepare to take adj.
vantage of it, That there has been
enormous accumulation of securities on
behalf Of the largest capital interests.
all through the past year and that the
advance in prices has been encouraged
and fostered by every device at the
command of these powerful interests
has been the prevalent conviction in
Wall Street for months. What will be
the disposition of these large accumu-
lations in the progress of coming events
is an important question in the solu-
ton Of the future price movement.
Y .arge participation in coming new cap
i'aI issues by these same interests Is
to he expected. Preparation to take adj
vantage of the good investment de-
mand and in the coming ease of money
have been felt here and abroad.
In the New York money market there
viii have to be met the needs of the
trust companies to bring up their cash
reserves held in their own vaults from
10 per cent. to Is per cent. by Febru-
arv first to comply with the law and
il is estimated that this will call Tor
come s45,O00,O00. The extent to which
tnc revision of the tariff in progress
may serve to unsettle business and
halt demand for products in expecta-
ton of price changes is subject or
some uneasy conjecture.
Tie European political outlook Is not
left out of the consideration owing to
the current of uneasiness lest, with the
opening Of spring the unquiet condi-
lions in the Balkans may issue In an
outbreak
The condition Of winter sown grains
is not fully satisfactory and brings
into view the always important infiu-
ence Of the coming years agricultural
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