The times., 1899-07-10
THE STOCK MARKET OUTLOOK.
Temporary Conditions Thnt May In
duce SaEEing Prices.

Temporary Conditions That May In
duce saEging Prices.
New York, July 9.-The outlook for the
coming week in the stock market is the
subject of much comment owing TO the
| unusual advance made in prices recently
followed during the latter part of last week
by slightly reactionary tendency There
is an inclination in conservative quarters to
| believe that the temporary halt In prices
| may be continued, or at least that the level
may not advance Immediately. The season
of the year is an unfavorabe one for
protracted upward movement, especially
when the short interest having been elm
mated almost entirely, the bears make an
| other concerted attack as they seem to
have done yesterday is re
The record of past years shows an al
| most unbroken record of dull and declin-
ing markets in July. Last year was the
notable exception, and the conditions in
July, 1898, were entirely exceptional also.
Brokers and large operators are in the
habit of taking this month for their holi
day, and Newport and Saratoga usually
contain more financial kings that Wall
Street at this season. lse3t
Another condition inimical to further
| activity and strength at this time is the
, temporary tightness of call money, which
| has been a marked feature during the
| past week. The statement of the New
| York banks yesterday showing the small
est reserve at any time in recent years
and large increase in loans, lis a healthy
indication of activity in general business
| but it Is not such a technical condition as
| is conducive to advancing prices in stocks
These are the arguments on the one side,
on the other hand there is everywhere
the most gratifying business showing, the
continuance of large increases in railroad
| earnings and the immense activity in the
| iron and steel and other industries. 1t is
also to be remembered that the present
year is an exceptional one also. exceptional
in its business revival after years of de-
preston, and also in the optimism and
confidence of the public and in the launch
| ing of new and rejuvenated enterprises
| built on this confidence The formation
of the multitude of new trusts" is not,
perhaps to be looked upon at this time as
an incentive to higher prices. The rail-
| road combinations, and consultations, and
| reorganiZations are. And SO also the ad-
ditional business that the new enterprises,
| trust, or Individual make for the rail-
| roads for the business world at large is an
| immediate stimulus.
II is also argued that while technically
and temporarily call money is tight, the
actual plenty of money is unquestionable.
even one of the chief features of the busi-
ness situation; the suggestion being that
the two conditions cannot long exist to-
gether, and that any day may see a return
of the 2 and per cent call rate of week
or two ago.
The prosperity of the country, however.
is general argument, while technical con-
ditions influxnce the immediate fiuctua-
tions of the stock market. 1t cannot be
doubted that prices ultimately will be
much higher than they are at present, but
it is quite within reason to look for tenn
porary laggard tendency.
1t is realized finally that the temper of
the market leaders will probably play the
most important part in the weeks market.
and that if they decide to continue the
boom for another week they will be abund-
antiy able to do SO regardless OF tight
money on the one hand or prosperity on
the other.