Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-02
Bulls Made Effective Market
Demonstration Yesterday
OVER ARRIVAL JULY l
DATE FOR HALF YEARLY DISTRI-
BUTTON ACCRUED PROFITS.
Speculative Interest Conferred in the
Fries and in Brooklyn Transit
Future Prospects.

NEW YORK, July There was rather
thin representation at the stock exchange
today. as was to be expected in view of the
exodus of yesterday on the part of members
intending to stay away over the coming
holiday. But the bulls made rather an eff
fective demonstration N honor of the ar
rival of July 1. which Is the date of the
distribution of the half years accrued prof
its. upon which they have counted to de-
yclop an investment demand for securities.
The movement was largely sentimental. as
the expected demand did not make its ac-
tuaI influence felt yet. Loans made on the
stock exchange on Friday carry over until
Monday, so that there is no loan market
on Saturday. The promptitude with which
the money market Will relax from the tight
ness, due to the July / disbursements.
therefore remains to be seen.
Stock market operators. however. were
evidently disposed to demonstrate their con-
fidence that accumulated funds will prompt
~ return to the money market and the in
vestment demand for stock make itself felt
Speculative interest centered specially in
the Fries and in Brooklyn Transit. and
dividend rumors continued the potent infiu-
ence to move prices The bank statement
was rather less unfavorable than had been
anticipated. Instead of decline in cash
81 81. 700. and the $4,000 900 loan expan-
sion no surprise. in view of the weeks
preparations to meet requirements.
The decline of s.. 435 500 in the surplus
was viewed with entire equanimity on
count of the relaxing tendency which al
ways follows the turn of the half year.
Outside events had no influence the
days market Some realizing at the end
made the closing irregular. but a good
showing of gains remained
Total sales of bonds. par value, si51j,OOG
Operations to Sustain Prices.
Operations to sustain prices of stock have
been actively pursued this week. In continu-
alton of the speculative campaign inaugu-
rated last week. AS the level of prices
rose the selling to realize increased in force
and resulted in periods of hesitation and
backset. but prices have been considerably
higher than last week. There is rather
surprising accord In the admissions that
the rise in prices has been largely fictitious
and aided by manipulatve tactics.
1t IS explained that the purpose of such
operations is to adjust prices to level
which the designers consider more in accord
with the promise for future values than
that before existing. and the buying orders
which have caused the advance were admit
tedly designed more to lift prices than to
accumulate stocks. Confidence was felt
that real holders of stocks would be as
little inclined to part with their holdings
at measurably higher prices as they had
persistently shown themselves to be at the
low prices at which the dull market had
long hung. The selling pressure on the
advance was, in fact moderate in most
cases. and the conductors of the campaign
have shown confidence and the possession
of sufficient resources to effect a good alb
sOTption of these offerings
Grounds for Confidence.
They profess the grounds of their con-
ftdence several specific conditions. including
the prospect Of uninterrupted ease of the
money market. the promise under present
conditions of good volume of crops to be
moved by the railroads and marketed con-
1idenee in a quick revival in the iron and
steel trade and increased demand for
investment as result of the heavy divi-
dend and interest disbursements in July
Importance attached to this hoped-for in
vestment demand is indicated by the stress
laid upon prospects for higher dividends in
the current speculation.
Prices of railroad stocks have ruled at
level which reduces the rate of return for
investment at present dividend rates to a
figure which proves a small attraction for
Investment. An effort to attract this de-
mand Is perceptible in the predictions OF
coming increases in dividends on special
stocks. These predictions have no official
sanction and they received a notable con-
tradictiOn in the action taken Louisville
and Nashville by the declaration of the reg
ular dividend The recent increase i'm the
dividend Reading was made the basis
for assumptions of other Increases. Read
Ing has enjoyed the benefit OF a continued
speculation since the increase on the pre-
dicuon that 1t was but preliminary to a
further increase. Talk OF dividend in
creases of this nature have proved the most
potent factor In the speculation both in
railroad and Industrial stocks. In the bond
market there has been rather conspicuous
lack OF the usual preliminary demand for
investment and activity In that department
was greatly congested in the japanese gov
erUments.
Showed Some Sensitiveness
The market showed some sensitiveness to
the hardening OF call loan rates late in the
week, incident to the preparation for the
July settlements. But this was not sufn-
Client to impair the confidence In continued
ease Of money on which the present specu-
latiye movement counts. The report of
the controller under the call of May -,
however. has been the subject OF some
rather sober discussion. Compared with
June last year, the nearest CORES ponding
date. the figures show growth In deposits
OF national banks OF S471.21S. 6J3. and this
Notwithstanding the large reduction in the
interval OF government deposits with the
banks. against which the maintenance of
cash reserves is regarded a less essential,
owing 70 the security of government bonds
deposited against them
The loan expansion in the same period
has reached the prodigious figure OF S04.-
1Jb,s6l. In the meantime there has been
a shrinkage in the account OF specie and
legal tenders held a s a reserve of 81. I29. 26).
The proportion of reserves TO liabilities the
country through was therefore unusually
low. But the shrinkage IS all found in the
eastern section including New York. the
decline in cash In that section running to
81 1865 as against Increases for all other
sections.
Trust Companies Showings.
The showing of New York state trust
companies in the return to the state bank
fenartuent ia n inheritance the
similar tendency shown by the COMPARE
sons. Conditions on June compared with
q year before show an increase in deposits
with these institutions OF s246,3l5724 and
AZ expansion in the loans on collateral and
bills purchased of S273. 1856. 749. while the
cash on hand has fallen A.531.STO below
the figure Of year ago. and the cash on
deposit with other institutions shows
shrinkage of SIC 9S9. 1888. Light is thrown
on the Judgment OF securities during the
market liquidation of the past year by the
increase reDOrted i'm securities held hy the