The sun., 1904-06-12
FINANCIAL AND COMMERCIAL.
SATURDAY june

The higher prices received to-day from
the American quarter OF the London mar
ket--at least one stock advancing in that
market to higher price than was reached
in the subsequent trading here-were not
conclusive evidence OF that response from
abroad to our markets improvement
which has been somewhat impatiently
awaited The weekend session OF the
London stock market is but nominal
affair. and Saturday Is the day OF the week
when American stocks are most easily IN
fiuenced by few orders .tldiciously placed
from Wall Street. The London quotations
were used in this market, however, as
basis for further operations on the iong
side OF stocks prior to the appearance OF
the hank statement. Perhaps the most
encouraging feature of the market from
a superficial point Of view was that the
proft-taking by traders on the crop report
was on 40 moderate a scale, showing that
the weeks improvement in prices had not
been based as largely As some people sup
posed on expectations that the Govern
ment's report would be as favorable
as 1t was The volume of transactions
to-dny compared favorably with the
total of yesterdays trading. I'm
mediately after the publication OF the
weeks banking results prices cased of
moderately under professional realizing
pnd then recovered sharply in the last few
minutes of trading and closed ct advances
over the final quotations of Friday. Wall
Street sentiment was undoubtedly infu-
encrd favorably by the Governments 8
June crop report. 1t had moderately
besrish effect upon wheat prices. An
analysis of the report shows that in the
FIVE principal spring wheat States the acre
age is almost as great as that of last year,
whilc the condition. although 2.5 per cent.
under that of the corresponding period OF
last year, is within a per cent of the average
condition for ten years. Four railroads,
namely, the Chicago Great Western, st.
Louis ard Southwestern, Texas Pacific
and Missouri Pacific, report increases Of
gross earnings for the first week OF June.
the Missouri Pacific showing the very con-
siderable increase Of Slo5, 900. Those who
are Interested in the railroads of the West
and Southwest have been expecting earn
imgs 10 fall of gradually during June and
possibly curing the greater part OF July,
and these increases reported for the hrst
week of June, therefore, are very encourag-
ing.
The bank statement would seem to call
for very little comment. The only sur
prise in ii was an increase of S5,52S 100 IN
loans. There was a gain of S6.4096OO in
cash, s5,Ol9,l 100 of it specie The expansion
in loans and increase Of cash together re-
suited in an increase of $lO,432 800 in de-
posts, increasing reserve requirement to
the extent of o.. COS ,075, but as the increase
in cash, or actual reserve, was SO, 400, 800,
there was s3,s0l SOS left as surplus This
increase in surplus reserve offset any dis
appointment that might have been felt
over the expansion of loans.
General developments in the stock market
curing the week were not many. but were
all in the line of restoring financial con-
nd,nce and creating higher security val
uos The temper of speculation, which
has been bearish. Is by no means yet assured
OF "A permanent advance in prices, but
t,at vague though potent influence Of
-better feeling" among professional oper-
ntorS has been much in evidence, and wall
Street knows very we'll that this will precede
rather than follow an exhibition of popular
interest in stock market affairs. The
buving of Ontario and Western stock,
which was, no doubt. either desire on the
laIt of the present management of the
conrany to increase its holdings OF stocks
70 dis to make suitable showing in any
court proceeding, or the anticipation of
+, s,sc,;lators that a dissolution of the On
tario and Western voting trust was likely
aud that. therefore. the shares would pos
Sos, an additional value, gave a little
flip to the general market and called
attention, particularly, to the present
Gtnll Ia I,,.; hat tIx,
art iracite coal roads are doing. In the
sdvancn in the Reading issues that followed
discovery "as made that offerings Of stocks
were few and that prices rose easily on
small transactions. and this lent confrma
ton to the theory which had for some time
been gaining ground. that the market
generally was pretty thoroughly liquidated.
The announcement of the successful term-
nation of several bond syndicates. the con-
tinusd strength of the bond market-the
d nland for high grade bond issues being
now OBVIOUSLY greater than the supply
thereof the fall in the price of wheat and
cotton and other staple articles that ind-
Gated that the long deferred and greatly
needed readiustment in the cost of COM
noditiGs was taking place, the better ex-
hihit made by railroad earnings and the
cessation Of gold exports all helped mat
tcrs on the Stoc! Exchange. The state
nent still holds and has been reinforced
that the crop outlook is better than it was
last year. The weather latterly has been
too cold and wet to be called ideal crop
weather, but it still has not been bad, and
all the private crop bureaus aver that
the leading crops have made satisfactory
progress since the first of the month. We
must lie careful, of course, not to judge
the crop situation by the weather locally.
The coast storm which rose of Hatteras
Inst week did not lother the Western grain
6clds
ono of the most pleasant aspects of the
present condition of financial affairs is, GER
tainly, II at no great question OF political
social or even of generally financial nature
troubles our peace Always, or nearly
always, heretofore III period of business
reaction like the present the business diff
rultics themselves have been complicated by
lhe acute discussion of some great issue
Ike tie tariff or the money standard, which
n it was not settled satisi actorily and set
tlec. soon would be source OF grave danger
The tariff and silver-what a responsibility
was that laid AT their door in the hard years
from 1891 10 1898. These and similar evils