Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1892-06-06

ascendeney. Early ia the
week London became free seller on
tnis market, 40 some suppose partly on
+. shott" account, and Principally on
Ioulsyille a Nashville, about whose
financial condition foreign holders are
reported TO have received advance IN
formation. This opened = new weak
spot, 10 which the 'beaTs" gave prompt
attention. temporary injunction 10
sued in New Jersey against Reading
sIso caused some selling of that stock
which, however, wac found to be well
suppofted. The professional traders
paid some special attention also 10
Rock Island and Burlington 4 Quincy,
probaply To offset the fact of both
stocks being very largely oversold.
These, however, were incidents OF no
great intrinsic Importance, and the
matter of chief interest IN connection
with them MAS that the ''bulls" should
nave permitted them 10 have the effect
they hal upon the tone oil the market.
On Thursday, however, a change cane
over the spirit of the dream OF the
bears" The leading seller seemed TO
have concluded that the "short" in
terest was growing quite dangerously
large, and hence there WAS general
buying movement TO cover those con-
tracts. News of favorable change
in the weather throughout the great
crop belt was accepted as q warning
against being caught short, and that
being the one condition necessary TO
give courage to the "bulIs" the market
stltfened at once and took an upward
turn. Should the weather reports con-
tinue to be- of the same tenor, the
market is likely tn respond In the form
of better prices.
Sales OF stock for London account
during the first half OF the week
strengthened the foreign exchange
mark ct, and TO that source Of demand
for bills must be added the usua! re-
auirements for the June settlements of
balances. Thss: facts have led 10 the
renewal of moderate exports of gold ;
but that being an ordinary incident of
the June exchanges. has already been
anticipated as to its effect upon the
market. With a surplus Of S2I ,5oO, 600
OF bank reserves, against s. ,50U. 900 u
year ago, the export OF n few millions
of gold can be a matter OF little import
ance To the local money market; while
by increasing still further the extra
ordinary plethra OF money at London
and on the continent, its ultimate effect
can only be favorable to reviving the
foreign demand for our securities.
The supreme condition affecting the
| stock market is the crop prospect as in
| fiuenced by the current weather; and
that factor is now less uncertain than
it was n week ago. Expectations as to
the wheat crop are improving, but are
still strictly moderate. AT the moment,
it seems probable that in some sections
the crop may be poor. whils in most it
may prove fair, and in few really
good; still. these probabilities may
! easily change wIthins few days for bet
ter or for worse. Tine June report of
the de epartment of agriculture will be
| forthcoming in few days, which will
| afford more definite data than any
thing yet forthcoming rs to the pros
poets of winter wheat. The prospects
OF spring wheat and Of corn must re-
main IN the dark until those crops have
reached the earlier stages of develop
ment. But accepting the most moder-
ate current expectations as TO the wheat
crop, the heavy surplus left over from
last year may be expected to bring up
the exportaDle supply to about average
| deminslons. That cannot yet be said
of the corn crop, and that is the fac,
which weighs most heavily on the stock
market