The times., 1899-06-18

cas- favor in the history of the country,
with one exception, last years. May is
month that almost invariably shows bal
ance against this country, but this year
there is an increase of several millions oyer
last month, and only small decrease com
pared with last year.
The crop reports have been the one dis
appointing feature in the news. 1t is now
acknowledged that the winter wheat crop
will be a small one. Railroad people re-
port that although ii is as yet too early TO
form any very valuable estimates as to the
corn crop and the spring wheat crop, the
prospects are excellent for a very large
yield Of both these grains The definite
items of news which affect the stock mar
ket directly have all been excellent during
the week. Among them were the declara-
ton of a / per cent dividend on Northern
Pacific common stock; the declaration of
the regular dividend on Western Union;
the showing of only small decrease in the
years surplus by this company, although
it compares with the great business of the
Spanish war year; the declaration OF div
idend of Ia per cent on Federal Steel
common, the first in its history, ana a
semi official statement to the effect that
the company has already earned the full
dividend on the preferred stock for the
year and is now assured OF large surplus
Z
dividends on both classes of stock; an in
crease of the dividend on Des Moines and
Fort Dodge preferred TO ! per cent and
various weekly statements of gross earn
! ings which show the usual large increases.
AS TO the technical situation, there is,
OF course, more difference of opinion. Sew
/ eral matters may be considered assured,
however. Flower & Co. and other leaders
sNff
during the entire week in small lots and
apparently without desiring to do more
than uphold prices. The aggregate of their
purchases must have been 900 shares,
at least and it was probably more than
this. The sellers have been the bears
Very little if any long stock has Leen
dislodged. There has been no reason in
the fractional fluctuations of the week
to induce holders of long stock to sell out,
/ for the present holders have already car
ried their stocks to a level many points
| lower than the present without throwing
them over. The bears then have sold
I stocks all the week without doing E'ore
] than cause extreme declines of point or
I two, and an average decline of perhaps
half point in the active list. The short
interest has been largely augmented.
The excessive dullness of the week
makes one thing beyond questionable pub
lie is not buying stocks. II seems reason
able to suppose that it will not do so until
there is a decided tendency to advance
shown In view of the nearness of the
July disbursements of dividends and in
terest, which will be larger this year than
ever before, and in view also of the fact
that the leaders of the market are buying
stocks 1t is believed by the bullishly in
clined that there is plan on foot to ad-
vance prices before the end of the present
month. Such is the usual course of prices
during the two weeks previous to the end
OF the fiscal year. This is entirely aside
from the broader optimism of the bulls,
based on the intrinsically advancing value
of stocks. An item in the weekly bank
statement is considered by the bulls to be
significant technically in this connection.
The increase in loans by the banks vas
over $15,000.000. No such an amount had
been expected by the street. The theory
advanced is that the bull leaders are bor-
rowing money with which to inaugurate
their bull campaign. The advice given by
the people who take this view of the situ-
alton is that stocks should be bought on
all declines and held for several points
advance before the end OF the month.
The bank statement was considered a
disappointment by the street generally. 1t
had no effect on the market yesterday,
however unless a trifling rally during the
last few minutes of the day may be at
tributed to it. The export of gold during
the week is reflected in the decrease of re-
serves. The loan item has been mentioned
heretofore. The figures follow:
Reserves, decreased. 50, $4,000
Loans increased. -...-.....-.------.-- l5,e0z 600
Specie, decreased. ed..--...-.--......... 7,0J5, 500
Legals increased. 10000
Deposits increased. d................... 9,gSs, 400
Circulation, decreased. 3, 100
The Flower stocks were the strongest
during the week. Brooklyn Rapid Transit,
Peoples Gas, and the Federal Steel securi-
ties all show small net gains and Rock
Island and Atchison preferred, although
they have been hammered with the 9th r
granger shares on nearly every day, are
only of from the prices Of week ago a
point or two. The Flower party has been
a persistent buyer of the former stocks,
and it cannot be doubted that a very large
short interest has been created in them by
the heavy selling of the bears.
The statement of the Brooklyn company
to the stock exchange management, made
during the week, is a most interesting one.
especially when it is taken in connection
with the earnings of the company in recent
months. Briefly, it is stated that the cap
the outstanding bonds of the comp my draw
| 81, 500, 100 40 annually; that the total of
rentals augments the entire fixed charges
to 50. l66. 730.40. The gross earnings of the
roads of the system for the year ending
| December 81 last is given as SO. l96, OPS l.
| The facts which may be added to these
| from later knowledge of the business of
| the system are that the gross earnings are
increasing at the rate of $1,000 to 81 600 a
| day or more on the average, and that the
1 operating expenses are about 52 per cent.
These facts show that the company al
ready is in most excellent financial posi-
tion, making no account whatever of the
future certain great growth of its business.
The increase of the company's gross earn
ings this year will make the total more
| than Sl2,000 900, it cannot be said how
much On the basis of that amount and
50 per cent operating expenses, there would
be remaining for the stock after deducting
all fixed charges about 6 per cent.
Much interest has been manifested in
the common stock of the Federal Stee
Company during the week on account OF
the declaration OF the dividend of Ia pei
cent. II may be said in brief that the
stock advanced during the early part oil
the week and declined after the dividend
had been declared, as is usually the case
Neither the advance nor the decline wa:
due TO anything more than manipulation