The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-11
FINANCIAL AVN COMMERCIAL.
SATURDAY, June 10.


day. and on this burst of activity prices
enjoyed the most pronounced recovery
that has taken place for several weeks
The adrances ranged from to per cent
throughout the active list. Tho only cause
to which this abrupt change in the aspect
of the stock market could be Immediately
referred vss the announcement OF a solu-
tion of the Equitable case, upon which
Wall Street was inclined to place favorable
construction. As Is 80 frequently true IN
matters OF this character. many OF the
.umors which had pr eoeded the disentang-
ling developments by only few hours
were Of the most gloomy and discouragng
inport. circumstance which doubtless
served to intensity the feelings of relief
entertained to-day in the financial COM
n,inity. The weight Of the Equitable affair
had been resting heavily upon the market,
and Wall Street had so distressed itself by
steadily regarding Its calamitous posi-
bilities that any positive stops to avert them,
n O matter under what auspices, could hardly
have failed TO elicit an immediate response.
Under certain technical and other con-
ditions It is needful only for one favorable
infIuenoe to assert itself In the market TO
r,ake others operative. and doubtless the
relief proceeding to-day from the changed
status Of the Equitable's affairs permitted
influences to act upon tho market when
previously had been ignored. Speculative
sentiment, for example. had been ngularly
unresponsive until to day to rumors OF peace
The continued progress Of peace neeotia-
tons between Russia and Japan ndoubt-
edly contributed something to the increase
OF good feeling. The announcement that
both belligerents had accepted President
Roosevet's suggestions was not made
until after the close OF tho market. This.
however, Is not likely to take the financial
markets OF the world by surprise. The
only possibility Of a surprise was in COL
lapse Of the peace negotiations
After the first hours trading the market
began to hesitate. the advance In prices up
10 that point having been pretty rapid,
without any great increase IN general or
outside buying to support It, but there
was fresh inspiration in the bank state
msnt, and it was in the last half hour
that tho highest prices Of the recovery
were made, A week ago to-day the banks
made very puzzling exhibit and con-
servauve persons gave themselves concern
over the disappearance OF large amount
Of cash and very considerable shrinkage
Of the surplus reserve. 1t was possible,
thew thought, that another week OF I'M
favorable banking results would wipe out
the surplus entirely. On the contrary,
to-day's statement showed an increase OF
Ss.777 rs. In surplus reserve. This was
brought about almost exclusively by means
Of reduction in loans, for there was but
nominal gain OF cash holdings. The de-
-. foA to and
deposits decreased 1884, 300. This de-
crease In deposits served to reduce the
reserve requirements by ss.lel ,225. to which
there u added q gain Of Ssl6 900 in cash. or
actual reserve, making an increase in the
surplus OF $s,777, 225. The total OF surplus
reserve. however, is still low. amounting to
only % s27 300, "a compared with S34 400
Tor tho corresponding week Of last year
Dor the corresponding week Of 1908 It was
Ss.4n,f1b. Wall Street. placed q favorable
construction upon the bank statement
because the surplus reserve, instead of hav-
ing been wiped out, was increased. but from
the distribution during the week among
local bankD and trust companies of $50 ,O0O.-
600. representing tho last instalnent OF
the japanese loan subscriptions, larger
gain Of cash than reported was generally
expected. Those who are committed to
optimistic predictions concerning the future
Of the stock market are counting conf
IDENTITY upon the continued accessibility Of
money to Wall Street borrowers at the
rates that have prevailed in the last few
months. Any serious Tightening Of money
market conditions would upset their calcu-
lations.
1t cannot Be said that the commission
house element supported to-day's recovery
IN prices to any gr extent. Such
support will come If at all. after the in
fiuences which acted yesterday upon pro-
fessional sentiment produce their effect
upon outside opinion. The technical posi-
ton Of the market for some time past has
seemed to favor demonstration against
the short interest and it was largely the
buying for short account. no doubt. which
created an active demand for stocks at
the higher prices. 1t is not to be sup
posed that such short interest as has
existed In the market could be eliminated
by a recovery of two hours duration.
Further aggressions upon te position
would doubtless be feasible with a moderate
amount of outside interest manifested in
the market The publics response to the
Equita BILE arrangement and, in more specu-
lative sense TO the Improvement brought
about to-day in quotations will be awaited
with good deal of curiosity 1t is the
opinion Of some very careful commen-
-tators that the influence of the Equitable
affair upon outside sentiment has lately
deprived the market OF the outside specu-
lative support which could otherwise have
been expected.
The Governments monthly crop report,
giving conditions a. they were on juno I,
which was published several hours after
the close Of trading to-day. was perhaps
= little disappointing In respect to winter
wheat showing the average condition Of
:, that crop to have been S5.5 ton days ago,
a. compared with condition Of s25 on
the LIST Of May. but an excellent showing
was made for spring wheat, the condition
Of which is given as es7. The winter wheat
yield indicated by the condition Of s5.5
Ia ~ ,oco.co bushels. comparing with an
indicated yield On May of 4eo.oooooo
bushels 90 . condition d e2.s 1t was
senetally knows, of course. that there
had been some deterioration in the crop,
which always must be the case. Since
these percentages were made up climatic
conditions have bean rather moro favorable
to winter wheat than were the avera ge