The Paducah evening sun., 1910-02-07
Easier Condition Is Apparent in the
Worlds Money Market
The Week.
EUROPE BUys SECURITIES

port from the market. InlS left
prices at the mercy of every passing
unfavorable current. The suspension
of a prominent bond house spread
unnecessary lack of confidence. A
series of unfavorable railroad re-
ports came out, such as might have
been expected in view of recent in
terruptions to traffic by bad weather.
The antl-corporation agitation al
Washington and an exaggerated fear
of unfavorable supreme court decis-
ions also tended to weaken conf
dence. Still another disturbing ele-
ment was the effect upon general
business of continued agitation
throughout the country against high
prices. Even the floods in Paris were
used as bear argument. although
that catastrophe can have but slight
indirect influence in this market. The
bear party however, was in the as
eendant. and encouraged by recent
success used every possible argu-
ment TO depress values as far as pos
sibte.7 III
The general situation remains
fundamentally sound. II is doubtful
IL any very injurious legislation will
be passed during the present session
of congress. The issues there are so
many and so complex as to Illustrate
precipitate action. President Taft's
policies are not likely to go through
without much resistance and consid-
cradle modification. The supreme
court decisions are still some distance
away, and IL experience based upon
previous cases is of any value, the
action of that august body is not
likely to be drastic or ruinous. When
the time arrives for these decisions
it win be no surprise II their effect S
not found to have been fully discount
ed. as was the experience in the
famous northern securities case. AT
least they will put an end to paralyz-
ing doubts. When 1t comes to the
technical position of the stock mar
ket, that. too. il generally sound. Sc
curhties as a rule. are now well un-
der control, and there are fewer
weak speculative accounts in the
market than usual Moreover,
stocks the last few days have drifted
into stronger hands, and the indica-
tions are that the market leaders are
quietly absorbing good securities
whenever offered at a sacrifice. Add
ed to this there has been a fair in
II - mo nf Il NJ f..e. -
the better grade stocks, which viii
soon be found to have strengthened
the foundation OF the market.
Business.
So far as the condition OF general
business is concerned the agitation
against high prices is unquestionably
having its effect. The outburst OF
popular clamor is being felt by the
politicians. and Is not likely to pass
away without having some effect up
on future legislation. especially con-
cerning tariff and trusts. In some
instances commodity prices have al
ready yielded: and in the public
mind the spirit of economy is taking
the place OF the spirit of extrava-
gance which has ruled for so many
months. Retailers are already feel
ing this new tendency in a marked
degree. and are consequently buying
with much more caution than for
many months past. This hesitancy
on the part of retailers is naturally
reflected in the wholesale markets
and in both the textile and grocery
trades there Is a spirit Of conserva-
tism which Is a marked contrast with
the feeling of a month ago. This Is
not harmful. and will ultimately
prove beneficial There is no doubt
that a halt was necessary in the up
ward movement of commodities. The
consumer had already been pushed
TO the point of exhaustion. and dis
content was spreading. threatening a
widespread labor agitation. The lat
ter Is still a disturbing possibility
and will continue to be so for some
time to come. In all prbablity the
differences between labor and em-
ployers will be settled by lower
prices for many staples. which will
diminish the cost OF living. and by
moderate concessions In the matter
of wages. The index figures for jan
uary should show a decrease, since
many articles have declined in price
during the past month, especially
those which enter most largely into
the cost of living. The agitation
against high prices has not been with
out good effect, inasmuch as ii has
developed a more conservative spirit
in business and probably less extray-
agant habits at home.
Money.
An easier condition prevails In the
money'market. Funds are generally
returning from the interior quite
freely. and the liquidation of the last
few weeks has tended to lessen the
demands for accommodation. The
fall In securities has induced bank
ers to scrutinize collateral little
more closely, but the monetary situ-
alton as a whole Is satisfactory, The
banks have been strengthened by