Evening star., 1905-07-30
FINANCE AND TRADE IN
MARKETS OF THE WORLD

lAlAl\l
NEW YORK. July 29-Yesterdays re-
yivsl OF speculative animation on the stock
exchange was not fully maintained. al
Though there was a good volume of busi-
ness and some striking gains were recorded
The market showed the effect to some ex-
tent of the desire to take profits on the
weeks gains and the principal active
stocks were not inclined to advance with
yigor The news of the day was not i'm
portant and was of no apparent effect upon
the prices.
The net result of the weeks operations
on the surplus reserves of the banks was
small but this due to the ofrsettins
effect of some large changes in Individual
items The SIS. .4SO, 700 expansion In loans
was attributed largely to the taking over of
loans by the banks from the trust COM
panies, an operation that always develops
when the call loan rate offers no greater
profit than the rate paid by banks TO trust
companies on their deposits.
Increase Of Borrowing.
1t - surmsed also that the stirring of
speculative interest in the stock market
has resulted in some increase of borrowing
for that account. Inc gam III cdSh VI ~
942 100 was much larger than expected,
and operated to conserve the margin OF tne
surplus Weekly reports of the mercan-
tile agencies helped to foster the cheerful
feeling over the businss outlook which mas
grown up in Wall street.
A feature of the day was the new record
price for Delaware, Lackawanna ana W est
ern at 40 accompanied by rumors of an
other intended extra dividend on that STOCK
The irregular tone of the market continued
up to the closing. Bonds We're STEADY. 10
tai sales, par value, 81 6toooo u
Prices have advanced this week III a uuit
market at first in q creeping and lrfeBu-
lar manner. but with gathering force ana
volume after the middle OF the week. me
dealings have been attributed TO proIes-
sionaI sources to large extent and com
y-iss,on houses have complained of small
business and languid interest on the part
of the public at large.
Public Out of the Market.
The abstention from the market of the
general public and the larger class OF habit
ual operators Is supposed to be due to the
seasonable uncertainty of important crop
out-turns during the critical period of their
maturity. Current news of conditions OF
the crops and of general business condi-
tons has been good and has encouraged
the smaller class of professional operators.
who have made up the market to attempt
to inaugurate an advance.
to time IN the movement Is caused by the
consideration of the comparatively high
level 10 which prices have already been
lifted by previous operations undertaken In
the confidence of the favorable develop
ments which are now occurring.
This condition of the market Is made con-
spicuous in the action of particular stocks
regarding which important favorable events
have been announced.
Dividend Announcements.
An important list of dividend announce
ments leads in every case to a decline in
the activity of the stocks Immediately af
fected and to pause in the upward move
ments in progress before the news was
published. The Erie stocks and the United
States Steel stocks were the conspicuous
instances this week. the former with the
declaration of full years initial dividend
on the second preferred stock, and the lat
ter with its excellent showing Of earnings
for the second quarter OF the year.
The July investment demand for securi-
ties a whole has been called disappoint-
ing. and 1t is the general supposition that
slight distribution has been effected at the
advanced level of prices to which stocks
were pushed in anticipation OF this demand
and of the favorable events which have
occurred.
While this is true of the immediate mar
ket, the Importance of these events is taken
account of and has maintained firm un-
dertone Higher dividend distributions on
such shareholdings as Reading, Baltimore
and Ohio. Amalgamated Copper and the
Eries. and the retention sof what is called
an extra disbursement on Illinois Central
are regarded as imposing instances OF the
improved earning power of respective rail-
road properties and of the confidence felt
by trustworthy and skilled judgment in the
good promise for permanence of the con-
ditions which have yielded these increased
returns.
Showing of Steel Earnings.
ipp nF
United States Steel Corporation has been
of similar comforting effect on conservs
rive opinion. The results for the quarter
are regarded as proof of prosperity In that
industry, Notwithstanding the luIl which is
known to have occurred during the later
portion or the quarter and which Is re-
hected obviously In the shrinkage In the
tonnage Of untitled orders on hand as COM
pared with the beginning of the preceding
quarter when this item reached a record
hgure.
But the reports current during the mast
month are responsible for a feeling of con-
ndence that demand for iron and for nearly
all lines of finished products leading or
" win rams and structural steel. has under
gone marked revival. The yiyifyinp sf
rect OF activity and prosperity in the iron
ana steei Industry on all other branches
OF INDUSTRY Is so invariable a rule as to
make this showing a considera ton of pra.t
importance-in this consideration a nro,,isa
OF the future. p-''e
Crop Discussion.
regarding the crops, the principal discus
sion mas centered about spring wheat Bry-
Ing OF stocks early in the week was attrib-
nted TO demand to cover by shorts which |
mad sold last week when reports were cur
rent OF large damage by black rust CondI-
tons during the week have been reported
favorable to the grain crops An unusual |
amount OF confusion and uncertainty EXISTS
regarding the cotton crop. which is agera-
waited by the dispute over the government
statistics
money has remained very easy in New
1ork ana the foreign exchange rate after
an early advance turned downward again
Inc west reports some hardening of money
rates and a favorable outcome for the
crops ana the expected activity in business
Is looked TO TO increase the usual demand
ior tunds for the crop regions.
Credit Expansion.
With the present great expansion of
credits. 1t is believed that considerable
loan contraction in New York will be ne
cessitated. The belief is growing also that