The times., 1899-08-07
THE MARKET OUTLOOK
Views Regarding the Probable Eff
feet of the Bank statement

| feet of the Bank Statement
| New York, Aug. 6.-The weekly state
ment of the New York banks yesterday was
decidedly unfavorable and further consid-
Grafton of the figures does not dispose
financial people to see it in any better
| light. The large loss of cash seems to
make 1t certain that money will be tighter
| in New York this week. This being grant
| ed, however, it is evident that conserva-
| tive people do not expect any tumble in
| prices tomorrow, or this week such as n
similar showing would have caused in
other stock market times. 1t is thought
that there may be some showing of weak
ness at the beginning of the week as small
holders realize their profits, but 1t is safe
to say that the majority of market people
expect the end of the week to be stronger
than the beginning. The faith of the
street is in the fact that very large part
of the stock. ordinarily dealt in on the
exchange is now out of the street and in
strong hands and will not be sold now
any more than it has been before.
An analysis of the statement indicates
several interesting matters It's unfavor-
able nature was due largely to the heavy
losses Of gold to Canada. AS the demand
Tor gold in Canada is only temporary and
the shipments were mainly precautionary
on account of the financial crisis in Mon
treal, 1t IS expected that the return flow
Will begin very soon. The system of av
erages used in the compilation of the
statement was again responsible for a
showing of the banks which was really
worse than the exact conditions. Early
IN the week the banks lost to the sub
treasury which losses appeared for the
IuIl SIX days, while their gains from the
subtreasury on account of interest nav
ments on the national debt were. in the
closing days-of which less than half ap
peared IN the statement-on the average
plan.
The statement shows, however no mat
ter how it is looked at, that the movement
OF gold between the interior and New
YORK is at present against New York.
lt seems probable, too that this move
nent viii not be reversed for the present.
1he country is too prosperous or, in other
words. too much in need of money with
winch to do its tremendous business.
Ihere is a very fair chance that Lon
uon VIII be obliged to send gold to New
York in the near future and if such proves
to be the case it may give a solution of
the difficult money situation here. The
fall in exchange at New York is felt in
the London money market. With demand
exchange at 4.S6, this country is declared
TO De IN strong position, especially in
view OF the fact that sterling at the prin-
elpaI European centres is strong and high.
The Bank of England will clearly have to
take measures to prevent heavy flow
OF gold TO America, and may not be able
to accomplish this purpose. Wall Street
people, however, are not relying on the
nope OF receiving British gold in making
their plans. 1t IS not believed that
slightly higher money rates will prevent
the buying of stocks and a strong market
before the end OF the week. Many are of
the opinion that an active bull market is
probable before September. -
Business conditions all over the country
are most prosperous with railway earnings
continuing TO increase, the corn crop. i'm
mense, the wheat crop promising, and
manufacturing and trade generally better
even than during the past months