The San Francisco call., 1904-07-17

the preceding upward movement and
when the occasional reactions do not
extend to the depth touched on the
preceding downward movement This
has been the record of the successive
movements since the recovery set in
from the low level of the period Of
liquidation which was touched in the
fall Of last year.
The course of the market during the
last two weeks has had the effect of
driving In a large outstanding short
interest which has maintained its po-
sition there with a number Of ad-
vances on the assumption that a pro-
longed period of depression and con-
traction was to be faced. The active
and organized campaign for the rise
was undertaken with a knowledge of
this outstanding short interest and
with purpose to profit by its nee
essities at. the higher level of prices.
But the success Of the campaign is
none the less evidence of the sold out
interest which has been reached and
the hopeful feeling, tempered by some
remaining uncertainties, to which
speculative sentiment had attained.
EXPORTS SHOW DECREASE.
The expectation Of the handing
down Of the Northern Securities de-
cision was an influence which culmin-
ated when it was announced. The Sc
riousness of the view taken of the
damage to the winter wheat crop ul-
timately commanded attention and ag-
gravated the pressure to take profits
in the grain carrying railroads. Even
the stress laid upon the prospects in
other crops served to Offset to some
extent any anxieties over the wheat
crop. The real Importance to our fin
ancial resources of the amount of sur
plus wheat we may have for export
commands attention by reason of the
showing of the foreign trade for the
year.
Out of the last years crop Of 63s. 900.
| 900 bushels, the fiscal years reports have
reached only A, ,OOO, 900 bushels, and the
June exports of wheat fell to the nom
inal figure of 45S,OOO bushels Princi-
pally as a result of the conditions in
the wheat trade the value of domestic
| exports for the fiscal year decreased
more than $7,000,OOO from those of the
| previous year, and only the large in
crease in the value of cotton exports
redeemed the years showing Whether
the rate of increase in our consump-
tion has thus affected the volume of
our exported surplus, a new factor in
the country's money affairs would be
| indicated were this condition found to
be continued in the coming fiscal year
BANK CONDITIONS GOOD.
The week has offered material for
comparison in banking conditions in
| the publication of the Controllers com
pilation of national bank reports
of June 9 and the semi-annual reports
| of New York trust companies. 1t is
| found that the national bank reserves
are well maintained, Notwithstanding
! the years heavy expansion. the excess
reserves over the amount legally re-
quired standing on June 9, this year,
at $104, 1926, as compared with $685.
| 3o7, ,725 year before. But while the ex-
cess reserves last year by the reserve
cities stood at only $40, 235, ,O67. they have
risen this year to $50, ST., ,SS2; and last
years holdings by the country banks,
which stood at s47, ,O72, ,C5S, have only in
creased to $52,5S5,O43 In other words,
a much larger proportion of the coun-
try's reserve is in the reserve cities.
! where it figures as reserve against both
the depositing banks obligations and
those from the holding bank In the
case of the New York trust companies
| there was an increase Of cash of SAL,
900 for the year, but the proportion
| of the increase in cash which is kept
on deposit with New York banks, as
indicated by those companies whose re-
ports specify that point, usually over
60 per cent, these deposits also figuring
in the cash reserves of the New York
banks. This heavy increase in the
ultimate reserve obligations OF the
country in the reserve banks, especial
ly New York banks, goes to explain the
conservatism which has marked the
loan market in spite of the apparent
plethora of money in New York.
Bonds were irregular at times, but
were generally firm. United States 5s
declined Il and the new As coupon Is
per cent On call during the week.