Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-21
The Financial Confidence
Grows Much Stronger
Sharp Rebound Noted from
Decline Early in Week.
Weakening Effects Of False Re-
ports Are No Longer Felt

| New York. Feb. 2o.-F,inanclal con-
| fdence irnroved last week as reflect
ed in the movement towards recovery
| in the stock market. There was iiio-
mentary in. Interruption TO the recovery
which had Set in the week before wien
The week opened by false Reports Wilic'i
had Seen disseminated OF WHAT freSi-
| dent Taft was going To say III MS -Se"
! Yor,, sreech on the Saturday prece"-
ing professional operators VINO hau
| houcnt stocks because ru1iof hau Saiu
that the President would say that the
| 9o,-err,,ept's attitude toward corpora
| ,ions Womb be moderated sold again
| hastily after reading the speech. The
pron1pt rebound from the first sharp
/ declines thus caused. demonstrates
that the timidity caused by the IN
ABILITY Of corporations to meet the law
was losing its force as a speculative
factor. The course OF the week tended
to confirm this feeling. More sober
r,eifar,tior Of the probable course
of procedure of the supreme court con-
yirced careful observers that the
american Tobacco case was likely to
be conside red along with the Stand
ara Oil case, wiz IL 10 SNe ioi eti - -
ment in the middle of March, thus
leaving ar indefinite postponement OF
the decision.
The development of a flaw in the cor
.,o~ation income tax law which rem
dered nugatory the provisions for pub
lici.y of corporations reports until ad-
ditional appropriations were provided.
allayed the apprehension felt by corpo-
rations. Proosed amendments to the
bill to alter the interstate commerce
law were regarded as reassurirg from
the standpoint of the railroads. The
progress of the hearing in the govern
ment's suit to dissolve the Union Pa
cifc and Southern Pacific merger was
interpreted in the stock market as
showing strength for the contentious
of the railroad companies.
The changed views thus implied from
those rampast in the stock market cir
cled so short time before must be
accepted in the light of severe decline
in prices which had occurred since the
first of the year, the effective llqulda-
ton completed in that period and the
offered by the lower prices
established as a result of these facts.
The remuneration of the money mar
ket, partly from the same causes, was
bringing about an investment demand
FOR good securities which offered a
barrier to the efforts of bear opera
tors to force further declines. Last
weeks rebound was based to an i'm
rortart extent upon the needs of the
bears !cft uncovered on the short side
in the course Of the long previous de-
cline.
The rebound in the stock market has
brought with It a more cheerful feel
ing over the trade outlook and greater
confidence that the lull in business was
temporary and to be limited. The play
# action and reaction between finan-
,ial sentiment in the money centers
AMI the securities markets and trade
ard industrial activity is not lost sight
IF. The quoting down of the stock
murket at The end of the week indi-
Gated the DISPOSITION to await the adj
iustnont of a balance between these
Forces for light on the future.