The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-18
FINANCIAL AND COMMERCIAL.
SATURDAY, June II.

could happen ended YEARLY to-day In Two
hours OF very nominal trading. The total
OF transactions was something over $4,000
shares. Prices sagged languidly, and the
LIST OF net changes was made UP largely
Of fractional losses. II there was uneasi-
ness either here or abroad over the state
Of relations between France and Germany
1t was not reflected in any selling OF stocks.
There was no pressure upon the market.
Lately speculative sentiment has been
as unresponsive to news from which II
would be possible to extract bearish in
SEPARATION as To that Of the contrary import.
Thus In a further sharp rise in wheat OPP
tions to-day and In an Unexpectedly large
increase OF loans reported by the Asso-
ciated Banks the bear element discovered
no incentive for attacking the market.
Recent operations on the bear side have
been as poorly rewarded as any on the
bull side. Owing to the sold out condition
OF the market it is extremely difficult Tor
the bear cowd to dislodge stocks, and the
bull crowd Is equally unsuccessful in its
efforts to arouse sufficient general interest
to support advances of even one or two
per cent. In these extremities professional
activity all but disappears from the market.
So far as the at ock market was concerned
tho principal event Of the day was the ap-
pearance Of the bank statement, with its
puzzling expansion Of SIS 900 in the loan
account. There was a gain OF 81 ,495 GOO IN
cash holdings, reflected together with
loans in an increase Of $l6 ASP 900 in de-
posts. This enlargement Of deposits re-
suited In an increase OF 81, ll3, 900 in reserve
requirements, from which the increase OF
81, 495, 900 in cash, or actual reserve, Is de-
Quoted, leaving a shrinkage OF $2,6ls,OOO IN
the surplus reserve. This brings the total
surplus reserve down to $7,209, 500, which
is more than so, 900 900 under the surplus
for the corresponding week Of last year
and nearly "a, 900 900 under that for the
corresponding week Of 1908. There was no
satisfactory explanation Of the loan ex-
pansion. It could not be accounted for in
a stock market SO utterly stagnant. When
unex pected changes in the bank statement
are not otherwise to be accounted for they
are vaguely referred to transactions be-
tween the banks and trust companies.
That explanation serves in this case. 1t is
not unusual for loans to increase as the
period approaches for making the mid
year dividend and interest disbursements,
but so large an increase as this with fort
"Rut you luleiNcililiS anu WIN NV oNSi''
investment demand for securities in evil
dence is somewhat unusual. 1t is twice
as large. for example, as the increase for
the corresponding period OF last year when
there was a very active investmont de-
mand in anticipation Of the disbursements
Nothing has occurred this week to abate
confidence in general conditions. 1t is
noteworthy that pessimism in Wall Street
- anral
conditions as upon others, more localized,
inimical to bullish speculation in the
stock market. Nobody has said that
business is not good. The most that any
conservative commentator has said is
that Its further expansion will depend
upon the outcome of the crops. The bear
element made great deal Of capital Of
slackening in the demand for steel products,
but there has been nothing like break
ing down in that industry and the lioui-
dalton In Steel stocks appears to have run
its course leaving United States Steel
preferred we'll above 90, or higher than the
average price of its original distribution to
the public. One Of the most encouraging
signs In the stock market of late has
been better and more confident kind Of
buying in the Steel shares, together with a
cessation OF struggling liquidation from
speculative followers OF the recent bull
campaign.
Bank clearings for the week show an in
crease Of % per cent over those for the
corresponding week of last year. The
earnings of ninety-six railroads for the
month Of April show a gross increase of
5.916,9s and a net increase Of 81 .766 Ols.
For the four months ended April 30 the same
roads show a gross increase Of $2l 81 ,957
and net increase of s8,s42, 504. Gross
earnings are better indication than net
earnings Of the state Of general business.
There must first be the gross earnings to
keep books with. Optimistic commentators
rest in the confidence that general conditions
sooner or later must assert themselves in
the market, and tia. these conditions will
improve greatly with bounteous harvest.
Although crop advices this week have
been in the main favorable, following
a monthly report from the Government
published after the close of business a
week ago to-day, indicating the largest
yield of wheat in the country's history,
grain prices have been steadily advancing.
Il il vel to remember that wheat options
are not being pulled on crop conditions
alone. The expert who so far has made
the lowest estimates and whose following
is committed to the long side of the grain
market does not predict short crop He
says, Of course, that the crop is being
overestimated and that it will fall con-
siderably short OF the record, but it should
nevertheless be good crop, he thinks,
and command high prices. The worlds
market position of wheat is remarkably
strong. The prospect for American
farmers is that Of a 6 ood crop at high prices,
and the prosp ect for the country is that
Of having surplus for export at high
prices.
The most notable Incident Of the week
In our security market was the advance
Of the Japanese ~ per cent. bonds to the
highest price touched since they were
issued. There has been big market for
these bonds throughout the week at prices
that would let every original purchaser
out at handsome premium. This has
greatly relieved congested speculative
condition In the bond market. 1t has also
served to advertise the bond market favor
ably, which is desirable at this time, when
an active demand for investment securities
would be Of more benefit to Wall Street
generally than big stock market.