Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-06
Confidence in Outlook.

Opinions of conditions and outlook have
been generally confident and the languid
demand for stocks has not caused any i'm
portant pressure to sell Holders are SEEM
ingly content to wait results, confident in
the security of their holdings The pas
sage of time through the critical period of
the crops in itself makes for safety, and
news of crop conditions has been favorable
with the exception of cotton. The govern
ments report on the condition of that sta
pie revealing further deteriora ton, was
accepted as adding to the likelihood of
shortage, which might impair the prosper
Gus conditions of the southern territory.
The progress of yellow fever and the re-
sultlns Interruption TO traffic by Quaran-
tines have also been regarded with anx-
Lefty. But in spite of these special fac
tors bearing on that portion of the coun-
try, railroads In that territory have been
strong in the stock market and some of
the important industrials working in that
region have shared in this strength. The
winter wheat crop has passed out of con-
sideratlon and occasional reports of black
rust damage to spring wheat have not I'M
settled the general faith in favorable out
come of that crop.
The Corn Crop.
Confidence in the corn crop is also taking
shape. although the critical period for that
crop is still awaited. Railroad traffic Off
Gals report the freight movement we'll sus-
tanned. and confident commitments for the
future by merchants throughout the west
based on the hopeful feeling regarding the
crop Outturn. From the side of the metal
industries reports are of continued large
orders for steel products. and the consump-
tion OF copper is reported on scale to abb
sorb freely the available output.
Misgivings recently felt over the labor
outlook in the coal mining industry have
been allayed by published expressions of
confidence coming from influential repre-
sentatives of both the operators and the
miners and the prospect for an active de-
mand for anthracite at the advanced win
ter schedule of prices has given conspicuous
strength TO the coai-carrying railroad
stocks.
II is probable that the hesitation and
dullness manifest in the stock market are
due more to the problem of the money mar
ket of the next few weeks than to any
other cause. The present extreme ease of
money is felt to be possibly precarious and
due to conditions subject to unexpected or
unheralded interruption. With large crops
and active business activity in the country.
there is little expectation that the demand
for funds upon the reserve centers viii be
less than usual.
The Volume of Loans
The outstanding volume of loans is known
To be large the country over, and
some contraction is apprehended to be es-
(sental even in the pormal course of BUSH
mess The condition of the government rev.
euues gives warning that measures of relief
by the treasury for the money market,
which have become customary in the fall,
may roe made difficult But still more inn
psrtance is attached to the part played by
foreign funds IN the present case of our
money market and possible developments
which may affect it.
II is from this point of view that the
peace conference opening at Portsmouth
has its greatest interest to the financial
world. The great European money centers
have accumulated very heavy reserves, and
something Ike redundancy has resulted
there Surplus resources have been placed
temporarily in the New York market. 1t
IS accepted u fact that ..-ese accumula-
tons are I'm preparation for expected Rus
stan and japanese loans which will neces-
sarIly follow either peaceful or bellig-
eut outcome of the negotiations.
The fotAtions OF such loans would lead
to Withdrawals from our market Very
large sums OF Japanese funds also are on
deposit in New York and placed in our
loan market.
Itemittances of these funds abroad are
believed TO be making from time TO time
and the whole is subject To withdrawal on
The order. OF the Japanese government.
There has been some improvement in the
demand for bonds during the week. but the
effect ON prices was smali.
L. :. new As registered have advanced
!. per cent on call during the week.