The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-30
GENERAL ADVANCE
IN STOCK MARKET
False Alarm Over Corn Crop
Aids Values of Stocks
RAILROADS ARE BUSY
Makes Traffic for Railroads and
Helps Prices of Such stocks
In Wall street

New York August 29.-The ground
work for the rise of prices of stocks
which occurred today was laid last week
in the overselling by a group of pro-
fessional spectators, prompted by the
false alarm of frost damage to the corn
crop The disapproval of this report,
and the later advices over Sunday of
favorable weather for the corn crop,
quoted apprehensions and had the eff
feet of reviving confidence in the i'm
provement that had been going on in
the condition of the crop since the date
of the last monthly government report.
The very large movement of wheat to
the market last week was another ele-
ment of the confidence felt of the crop
prospects
Sales of cotton at the New York ex-
change for August delivery for 20 cents
a pound were treated as merely SEN
sational market episode during the i'm
perative requirement of an uncovered
short interest. The crossing of the rec
ord price made in the Sully corner, and
the establishment of new high record
since the Civil war, were demonstrations
of successful manipulation and success
full market manervering with very little
bearing on the problem of crop yield or
intrinsic value.
The approach of the end of the month
and of the period of delivery on untitled
contracts made the explanation and the
indifference of other options to the ex-
element marked the limitations of it's
influence.
The weekly interviews with traffic
managers of the great railroad systems
bore out the reports of the rapid move
ment of grain to the markets. The TAX
ing up of the idle surplus of freight cars
in progress as q consequence had its
effect in encouraging the hopes of rail-
road equipment The traffic report point
ed to a large proportion of agricultural
implements in the traffic movement This
was regarded as a favorable harborng
of agricultural prospects and a sign of
the present prosperity of the farming
community. Reports of some increased
demand for iron supplemented these in
fuences in causing cheerful tone to
speculation.
The rapid movement of grain to mar
ket carries with it the corallery of need
for currency to effect this movement The
demand on the interior banks at the
reserve centers for this purpose is said
to be large and is reflected from the New
York banks. Shipments of currency to
the interior and Canada and from here
continue active by express, and there
were deposits at the sub-treasury today
for transfer to New Orleans These
forces of depletion of bank reserves may
have accounted for slightly f1rmer
tone of call loans today the rate OPEN
ing at 11k per cent -andT rising to 2 per
cent. The higher rate is effective in
bringing out funds that have been kept
idle. A frmer tone characterized money
markets in london and Berlin as well
as where preparations for the monthly
settlement are in progress
Foreign rates have yielded quite sharp
ly apparently in response to the f1rmer
tone of the money market. The tenacity
with which three or four of the largest
banks are holding to excessive surplus
reserves in face of the rates a meager
son for some uneasy discussion as a
possible indication of expected unfavor-
able developments of some kind The
demand for stocks today seemed to be
professional in it's origin buying by
shorts being supplemented by the oppos-
ing tactics of a bull party on the floor
of the exchange. or the aggregate sales
of 337, 700 shares, y. s. Steel Reading and
Union Pacific made 252, 300 shares
Bonds were firm; total sales, par value.
$745.OOO.
United States As advanced Il on call.