Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-16
Wall Street Falls Into Leth-
argic State.
FEW PRICE CHA N GES
BANK STATEMENT SHOWS HEAVY
CASH ACCUMULATION.
Larger Than Indicated by Preliminary
E3timates-General Stock
News.

NEW YORK. July 1J.-rhe stock market
fell into athargy today, and only insigni1-
cant charges resulted from the days small
business. The heavy accumulation of cash
revealed by the bank statement was much
larger than indicated by the preliminary
estimates. hut this was supposed to be due
To the rcctidcation OF last weeks unex-
pcctcdly urge decrease by the working out
of the computation Of d lilly averages. AS
This building up OF the reserves is for the
purpose OF providing for the repayment of
the $1l.tt1ou0 OF government deposits call
ed for today the money market is not ex-
pected 10 benefit from il. The ease of call
money during the past week had evidently
been due to the temporary employment of
these funds. The contraction in loans re-
lieved any apprehension that the subscrip-
tons for the japanese loan had made any
undue urolds upon available credits. The
absorption of Union Pacific set afloat re-
newed c0Hjcctures to the coming divi-
dend action upon which has been expected
from day to day during the week
The Financial Chronicles estimate of the
expansion in railroad gross earnings at
tracted attention, returns from 125 rail-
roads partly estimated indicating in
crease for the first half of the year over
the rather unfavorable showing of the first
half of last year of approxima tely $4,000
r1D while the comparison with the first six
=
expansion of some $40 C00.oOo. The buy
Ing of Union Pacific held the market firm to
the close. Total sales of bonds, par value,
81 G2S.ON
The process of digesting profits, which
was manifest last week in the stock mar
ket, eliminated early this week in a sharp
break In prices, coupled with the announce
ment of coming vacation departures of
some of the accredited leaders of the re-
cent speculative campaign. The market
for the rest of the week showed the benefit
of some of the favorable developments in
affairs. but lacked the important operations
on the part of skilled organized parties
which had formed the backbone of the pre-
cediug advance, and which had been fos-
tered in the confidence that market would
be found for holdings accumulated on the
advance as a result of the reinvestment of
tho large sums disbursed as half-yearly
profits on July l. Such strength as the
market showed In the latter part of the
week was taken advantage of constantly to
complete the profit-taking on the part OF
the market followers of the leadership
which was retiring. Evidently the appre-
heusion existed that the future facilities
OF the money market might become mar
rowed To the disadvantage of those using
borrowed funds for speculation.
The underlying feeling of confidence In
conditions which establish values of secu-
rites was fostered by a number of Incl
dents. OF most far-reaching effect prob
ably was the prospect for the grain crops.
The government report of condition as of
y L
regarded warranting every encourage
ment 10 the hope of a prosperous outcome
TO the Couutrys cereal crop. The estimate
yield based on the conditions there shown
of a wheat crop of over TOO,000.000 bushels
and OF a record corn crop was supplement-
ed in Its effect by the more Immediate news
OF the week, reporting favorable weather
conditions and good progress in growth
and harvesting. The fact that the govern
meDts estimates were accorded their usual
authority also relieved the anxiety lest the
cotton leak scandal should serve to dis
credit all the governments agricultural
statistics. and to serve to leave the basis
of market operations unstable and uncer-
tain. with the threat of resulting unsettle-
ment.
The stock market view OF the outlook In
the iron and steel trade has been one of
growing confidence. Specific assertions of
very heavy orders for structural steel and
Of intended increases in prices have been
an important factor in forming this feel
ing. The statistics of production and con-
sumption for June failed to reflect any
viyal In the iron market. the falling off in
production not availing TO prevent an ac
cumulation of stocks on hand. But the
vast dimensions of the consumption In this
industry for the half year made an impress
sive lesson of the prodigiOus resources for
expansion of the trade and the resulting
profits OF those engaged in 1t. One Of Wall
streets fdvorite maxims Is the Importance
and reliability of the course OF the iron
market an index of the countIy's in
duStry as a whole.
Dividend prospects have continued to play
important part in the weeks market.
The continued expansion in earnings re-
ported by the great railroad systems of the
country have kept alive hopes for a long
time past Of increased disbursements of
the growing profits. But the policy of
large outlay out of current earnings for
bettermentS and even of accumulation OF
surplus to secure less profitable periods
have been advanced as explanations for
conservative views on dividend increases
\ departure from this conservatism Is re-
garced as evidence of confidence in the
future maintenance of the prosperous con-
dtions.
The raising OF the dividend rate on Balti-
more and Ohio following that on Reading
mas had important influence on sentiment.
But hope OF similar action in other cases
stimulated by stock market rumors has
been disappointed. notably in the case of
Union Pacific and of expected large dis
nursements on Northern Pacific and Great
Northern. The failure TO act in those cases
mas caused disappointment and has induced
selling Of the stocks.
The large subscriptions for the portion of
the Japanese loan offered in New York was
feature OF the week. The money require
ments for the applications were of moderate
effect on the money market But the great
eT part of the payments are thrown over
10 the final installment falling due in Oc-
tOber and form an important additional item
~ the calculations of the money require
ments at that time. Preparations have
been making also for the return of over
81 10000 OF government deposits to the
treasury today Rates for time money have
advanced under an active demand for the
six months period and the course of the
fall money markets mas come into increas-
ing consideration.
The influence of the revived discussion
and further disclosures in the Equitable
Life affair may not be ignored. Account
IS taken IN the stock market of the distrust
which may be engendeEed in the minds of
investors by the discredlt thrown upon
names long highly respected and upon in
stitutions trusted by the public confidence
for the wise exercise of discretion and in
tesrity In the placement Of vast sums of
capital In security The scandal regarding
the governments agricultural statistics has
tended to aggravate this feeling and con-
centrates attention on all minor incidents
OF low standard of business morality. with
the effect OF producing an impression of a
general tendency calculated TO cause dis
trust and disturbance of that credit which
IS so important an element in the great en-
terprises of the modern world
Bonds were dull and irregular.
L. S. new fours, registered have adj
vanced y and the coupon Y per cent on call
during the week.
NEW YORK BANK STATEMENT.
NEW YORK Iu1y ncfar