The Birmingham age-herald., 1911-08-21
REIMBURSEMENT IN THE STOCK MARKET. The General Outlook Was
 Responsible SPECULATION IS DULL Cash Transfer of $50,OO0,00 and Financial Conditions Abroad
 Have Effect as Dis
 couraging Factors
SPECULATION IS DULL

New York, August 20.-With occasional intervals of resistance and recovery. prices of stocks were forced last week to new levels for the year, although a substan- tial rebound set in before the end. The volume of selling gave rise to constant surmise as to it's source and varying ex- plantations of it's motives. A conspicuous fact was the enormous congestion of the dealings in a handful of stocks, which have served as counters for the principal speculation for months past, especially Union Pacific, United States Steel and Reading. The former particu- larly was the subject of intending gos- sip of internal dissension, selling out of holdings of retiring capitalists or estates and coming dividend reduction.
 Outside the turmoil of the Stock Ex- change causes are dscernible for the decline of more general application A contrast of the businesA outlook and promise with that of the early year in itself accounts for much of the readiust- ment that has taken place. The fact that an ill-judged speculation was persisted In despite warming events up to the latter part of July, when highest prices for the year were made, goes to explain the vulnerable position of the, market under necessitous liquidation.
 The transfer of over $50,000, 900 cash from bank reserves to the government vaults in payment for the Panama canal bonds upset calculations of money market re- sources. The Moroccan crisis and labor disturbances in England, converging on financial position abroad liable to strain, have prompted large marketings of for eign holdings of American securities and advanced bids by foreign borrowers to induce American credits to be left un- ment at home.
 From an early promise in May and June for bumper crops of wheat and corn, deterioration had brought down the promise of August 1 to deficiency of S70,0OO0O0 bushels In yield of wheat, corn and oats, compared with last year Bank clearings, mercantile returns and steel trade statistics, instead of the rapid trade recovery looked for, have disclosed only gradual progress and in some cases, sta- tionary conditions.
 These conditions dulled the speculative appetite and left speculative buyers un- able to dispose of stocks at the high level to which their operations had car ried prices. The series of congressional Investigations of corporate affairs, the commerce commission decisions adverse to railroad rate increases, and the pros pect of tariff legislation the coming win ter were additional dscouraging factors. Reports of concerted demands from rail- road laborers for higher wages threat ened trouble in another directions
 The fall in stock prices from the high level of July is accepted as an accurate measure of the disappointment of earlier hopes of the rate of the revival whic! was to take place in business industry. It cannot be said that confidence is im- paired that the recovery is to take place, in spite of it's delay
 { The brilliant prospects of the cotton crop remain as an offset to the deficient grain crops.
 Improvement in corn is still hoped for.
 The July foreign trade figures show the carrying over of last years favor able conditions into the current year. The banking position of the country is pointed to as almost unprecedentedly strong Credits are not extended and mercantile stocks are said to be uni yersally low as consequence of hand to-mouth buying for long period. Financ- ing on an extensive scale has been ac- complished since the first of the year and corresponding resources for outlay supplied. e4 't.oe