The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-22
FINANCIAL AND COMMERCIAL.

,.'' FRIDAY, July 81.
The weight OF professional sentiment
was against the stock market to-day, and
it's impression upon prices may be seen IN
the list OF net changes from yesterdays
closing quotations. In this list fractional
declines predominant. Reading made the
extreme decline OF any active stock. The
strength Of a bearish demonstration against
the general market In the last hours trading
conferred upon Reading, and 1t suffered q
maximum reaction OF 2 6-S per cent.
Traders sold stocks steadily on one pre-
text or another almost from the opening
on the markets lack OF response to bullisf
influences, on the advance In wheat. on
the theory that II prices would not go ur
they could 20 down, on impulse and on gen.
eral principles. The violent rise IN wheat
futures, on reports OF rust In the spring
wheat country, was perhaps the most
serious and plausible argument put forth
in favor Of trading position on the bear
side Of the stock market. The Western
element in Wall Street has been leaning
somewhat to that side for several days or
the strength Of this rust talk, and to-day
its selling became moro aggressive A
good deal OF it, no doubt, has been for the
short account The impression here has
been that the Western contingent was pretty
we'll cleaned up on the long side OF the
market.
This is the first time that the stock mar
ket has been influenced perceptibly by
movements in the grain market. Ar
equally violent advance in wheat options
little while ago was dsregarded on the
Stock Exchange. This particular grain
market incident. however. happened to
coincide with a professional preference
for the selling side of stocks and the beai
element made speculative capital OF it.
The selling was not confined to the stocks
of railroads serving the spring wheat terri
tory. On the contrary, 1t was heaviest
and most effective IT, Reading. coaiei
stock, which is perhaps least OF all railroad
stocks affected by rust in wheat. Inc
speculative position OF Reading possibly
was more vulnerable than that Of some
of the granger railroad issues. Northern
Pacific, in which point fluctuations coca
sion no comment, declined only points
Great Northern preferred showed a me-
decline of only ~ per cent
Trading was listless and uninterestine
during the greater part of the session. i
was in the last hour that the bear elemen
began TO make some Roadway. On thu
declines buying orders appeared and thu
market broadened perceptibly, as, fol
example, in Union Pacific, for which there
was a much broader market at 1913 thar
there had been at 1920. Speaking merely
of the superficial phases OF the market
it ia the opinion of men whose judgment u
these matters is generally Trustworthy tina
on drives such az the one made at the mar
ket this afternoon the bear crowd does no
induce enough genuine selling to reward
its efforts. The supply of stocks out o
which to cover contracts is not MATERIAL!
increased and when bear traders seei
to buy back what they have sold the stock
are not there. This has been their e1
perience hitherto. 1t is ono thing to de
press prices in dull and narrow marke
and quite another thing TO cover shor
contracts at profit.
1t must be admitted that the market
response to what the Stock Exchange call
| good news" has been more or less dis
appointing. Amalgamated Copper to-da!
advanced on fair volume Of trading &c
s4n, fell back to s2T and closed at 1917
showing a net decline Of 4 per cent. Tn
effect upon the market OF influences whicl
are intrinsicaly favorable depends to
greater extent than the average man ma!
suppose upon what use the so-called oil
interests choose to make Of them. On rar
occasions the public will interpret thing
for itself but generally it devolves upol
those who are handling the market to max
| their ammunition effective. There is who'll.
lacking in the market at the present tim
the kind of initiative on which the publ
will act, and the only possible inferenc
is that the more influential interests O
Wall Street are not in any haste to promot
general speculation on the bull side OF tn
stock market. Lack of response to goo
news, however, is without any prejudice
whatever to further Improvement. Iw
things that Wall Street had been looking
forward to as influences that would stimu
late the market, viz, the Equitable settle
ment and Japanese naval triumph, wer
announced on one day, and prices advance
sharply, only to react again Immediately
and traders said that if that was all tn
response the market could make Their
must be something wrong with it. On tina
reason they sold stocks, and when the
were through selling tn, market starte
UP quietly and advanced steadily for severs
weeks. Advances OF to 10 points an
even more have occurred 81 nee the specula
tive contingent voted the market sal
because it did not respond rightly to tn
double announcement of the Equitabl
settlement and the Russian defeat in tn
Japan Sea.
Surmise as to what the bank statemer
will show tomorrow is somewhat miIec
Well informed persons would not be SUI
prised to see large increase in bank loans
The reasons for such an expansion ar
easily comprehended. In order to en-
ploy the money received with subscril
tions to the Japanese loan, the banks ha
to lend it out on call. This caused the ca
interest rate to decline to point whore tn
trust companies withdrew from the mai
ket and hence there must have been
large shifting Of call loans from the trut
companies to the banks. The bank
therefore. are likely to show an expansio
of loans which will be misu Understood unles
the fact is borne In mind that the loans {
trust companies have decreased CORE