The Birmingham age-herald., 1911-08-07
SECURITIES SHOW MARKED REACTION Strong Pressure Caused
 Many Beliefs SEV VERAL CAU s ES Correction of Spectators Over-Ex- tension in Stocks-Policy Paris Money Market-Reports Rail
 road Earnings
NERAL CAU s s

New York, August 6.-Marked reaction was shown by the securities market last l week, prices receding from to 10 points or more in a number of active issues' The extent of the pressure gave rise to the belief that some occult causes were at work beyond the obvious factors in business, industry and agriculture. 1 It was assumed, for one thing. that speculative over-extension was in course | of correction both in stocks and com 1nodities Some of the selling was ascribed 10 cotton market sources, and the vio- lent rebound in the price of that com- for that market.
 Another source of financial pressure was the policy of the Paris money market to strengthen it's reserves by calling home foreign credits. This policy has been in force toward the German money mar ket ever since the Moroccan question became acute The effect was said to have extended to the New York market last week in the form of calls on a specu- lative group, which borrowed money in Paris.
 The government policy toward corpora tions was cited as an influence on the stock market. The heavy fall in quota tions for Standard Oil and American Tobacco shares attracted fresh attention 10 the consequences of the enforcement of the antitrust laws. Steps which have been taken by those corporations toward compliance with the supreme court rul- tl,a rit int fo much confusion of mind as to their posi- tion under the proposed plans.
 The condition in which these corpora tions find themselves is taken to point the results in other cases. The activity of various government departments to- ward affairs of corporations keeps alive expectation of these results. The ques- tion of the standing of the National City company and it's holdings of shares in other banks has brought the leading financial institutions of the country into the scope of this influence.
 Reports of railroad earnings for June brought under review railroad results for the six months and the fiscal year. The results proved to be irregular, as shown in the returns even of roads in the same field An increase in gross earnings for the year by Atchison, with a good part of the increase conserved in net, con trasts with heavy falling off in gross and Is aggravated in the net decreases of the Hartman lines, New York Central for six months lost but small pro- portion in gross, but reduced net by ad- ditional operating cost, while Pennsylva- nia's severe contraction in gross is mod flied in the net by cutting down cost to the extent of half the gross decrease Railroad officials speak in tones of con- servative hopefulness of the future. The crop situation continues dominant factor on estimates of values. The gov ernment report on cotton amply confirmed 1 the feeling of confidence regarding that | crop Wheat and corn were affected by persistent reports of damage in the north
 west and by insufficient moisture for 1 corn Trade and industrial reports were
 "spotty." Advices of mill resumption in
 New England were mixed with those of | further curtaiment there and in the
 southwest increased sales and growing
 mill activity are reported in steel, but
 their influence last week was qualified
 by a yielding tendency in prices of some grades