Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-23
Financial News Letter
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BY W. G. NICHOLAS.
,cial Correspondence of The Star.

Special Correspondence of The Star.
NEW YORK, July 30, 1905.
= The whitening heat melted bears and bulls
alike, incapacitating both for hard work.
The physical effect of boosting prices was
too much for the buying party and condi-
tons deferred aggressive campaigning on
the down side. AS a result price changes
were erratic and no decisive tendencies de-
veloped. The business situation remains
comparatively free from new disturbing in
ffuences and the outlook is, on the whole,
encouraging. although the great banking
interests advise moderation at this time In
all speculative operations. The general
crop outlook is favorable. but 1t is yet too
early to become unqualifiedly enthusiastic
over harvest results. Just as well wait
until the season is further advanced, say
the conservatives. At the same time the
banking interests do not really anticipate
marked change from existing conditions in
either the international or domestic mar
kets. In order, however, to make them
selves perfectly safe they are making ex-
tensve arrangements to utilize American
credit abroad to provide funds for the great
autumn movement of crops. By this pro-
cedure serenity is guaranteed and the
country is given reasonable assurance
against important advance in interest rates.
On the whole it can be said that securities
values are stable and give promise to MAIN
tenance around current levels. The bear
element finds little encouragement and 1t is
probably true that the short interest In
stocks is not as large as usual. This leaves
the market technically weak. but as the
floating supply is concentrated in strong
hands there is seemingly small prospects
OF pressure from any quarter. Those who
hold stocks are. q rule. quite willing
to sit on them and they wait the normal
developments of the market. In the natural
course of events prices should begin. to ad-
vance before long, and 1t Is the prevailing
belief that patience will be rewarded by
just that kind of a market movement within
the next few weeks. although immediate
activity Is not looked for.
The great volume of established dividend
paying stocks has passed into the hands of
the investing classes and Is safely locked
up in strong boxes. The number Of people
able to buy and put away securities has In
creased amazingly in the last Ave years,
and even those in the best position to OBJ
serve this phenomenon confess that they
do not half realize the absorptive ability
has grown SO rapidly that nobody has been
able to keep up with the cold facts. Every
city OF consequence has long lists of Million
aires and multi-millfonaires and today there
are more owners of big blocks of securities
ten times over than there were decade
ago. This fact accounts for the disappear
ance from the street Of many high-prieed
railway issues. The floating supply OF div
idend payers is daily diminishing guam
tity and the attention not only of specula-
tors but of far-seeing investors is perforce
turning to the cheaper and lower priced
stocks. The moneyed classes are almost
unanimously willing to take a chance on the
continued prosperity of the country. They
see stocks disappearing frona view that q
few years ago they could buy for SO to $50
a share, stocks which then possessed no
gre intrinsic SNeGuiatiya yxaluA M
those that are now obtainable at the same
figures.