The Birmingham age-herald., 1911-09-11
STOCKS LOSE
 EARLY GAINS Moroccan Situation Had Big
 Influence DEPRESSION
Over Extension of Credit in Germany Calls Forth Restrictive Policy. Outlook Sentiment Appears
 Much Confused

New York. September 10.-Prees of stocks made a further recovery in the first part of last week In continuation of the movement of the end of the previous week. Hesitation and weakness again developed before the end of the week, however, and gains established on the rescovery were cancelled. Professional operators explain the movement as be- ing due to failure of buyers who support ed the market at the low level reached in August.
 Such action in the course of an extend ed decline Is an unusual feature, even with no other forces at work than the purely technical causes thus indicated. Last week explanations were to be found also in the course of the news for the temporary advance. It had been feared that crisis might have been reached in the Moroccan dispute that might conceiv- ably have provoked war. Danger of such an outcome appeared to be lessened. Hopes were felt that a peaceful settle ment might be reached of the dispute between western railroads and their shopmen. The recurrence of the markets depression in the latter part of the week was taken to show the remaining possi- billties for trouble on both these ac- counts.
 The conpicuous part played by sales of stocks for foreign account pointed to for eign sources of the depression. Evidence corroborative of this view was found in the extraordinary percentage of the re- serve maintained by the Bank of Eng land the rise in the private discount rate in Berlin, and the policy pursued by the Bank of France to protect its gold hold ings. There were events beyond the Mo- roccan negotiations which indicated in- dustrial and commercial causes also for the depression abroad. The British for eign trade return for August demonstrat- ed the heavy cost of the railway strike.
 Riotous demonstrations in France against high cost of foods proved the ex- istence of an economic trouble similar to that in this country last year. Over extension of credits in Germany called forth a restrictive policy by the Rechs bank several months ago. forcing up the private discount rate in Berlin and driv- ing borrowers to resort to other money markets, including New York.
 Some very broad generalzatons find a
 
 market, owing doubtless to the confu- sion of sentiment over the outlook. For instance, the coming effect of competition from the Panama canal is urged to ex plain the decline in the transcontinental railroads. Attention was given to a pa per read before the British association alleging the great output of gold as cause for high prices and the unrest of labor.
 The blast furnace output in August and the furnace capacity active on Sep tember l showed notable expansions for the month Bank clearings for the month outside of New York made favorable comparisons both with last year and the year before The action of the cotton market failed to bear out reports of fur ther deterioration. The government crop report proved corn to have improved dur ing August, but showed serious further decline in spring wheat.