The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-09
FINANCIAL AND COMMERCIAL.
SATURDAY, July {

StOCR Exchange WIS OeSultOTy uiiu ThoIc VI
less irrelevant. Under the profit taking
OF traders disinclined to carry long stocks
over the end of the week, prices receded
somewhat but the average decline was
trihing, and the reactionary tendency OF
the general list was Offset by an exhibit
ton OF pronounced strength in the United
States Steel shares, which advanced to the
highest prices that have yet been touched
on this recovery the common stock selling
at SAX and the preferred at 1902. The
Steel stocks held their gains, and were
largely responsible for the strong tone Of
the general market ut the closing. The
buying Of the Steel shares, while not par
ticularly ggressive, was perhaps the strong
est that has yet been seen on this move
ment. In the last half hour Union Pacific
recovered nearly per cent. from its low
point for the day, and closed unchanged
from Fridays final quotation of 1905
Reading common reflected throughout the
session the realizing Of timid followers
OF the advance. and closed at a small net
decline while the first and second preferred
stocks closed at net advances Of IA per
cent. each,
The weekly bank statement, showing a
decrease Of s3,70l $50 in surplus reserve,
q !aas Of s5.e34 800 in cash holdings, and a
decrease Of s4,4lO,5Oo in loans, was dis
regarded in the stock market, The loss
of cash would have reflected much more
heavily in the surplus, except for the de-
crease in loans The decrease Of 81 1888 500
in deposits reduced reserve requirements
81, 9ss, 45O, which is deducted from the loss
of s., 1894, 800 in cash, or actual reserve
leaving a reduction OF but S3,7ol $50 in
surplus reserve. The total of surplus
reserve is now s7,o57 SIS, as compared with
$3s,Ol7,725 for the corresponding week Of
last year.
As an objection to bullish comment on
the stock market. it could be said, of course
that surplus reserve of less than IS. COO 600
leaves apparently slender margin with
which to think of financing active specu-
lative operations for the advance, but it
has become so impossible to discover the
actual financial condition Of Wall street
from the weekly returns of the Associated
Banks that certain amount of confidence
must be placed in the assurances of bankers
who presumably do know what that con-
dition Is. They affirm that there is nothing
In the money market at the present time
TO worry about. There is money enough
they say, to finance much more active
stock market speculation. The best in
formed authorities on money market con-
ditions. allowing for the demands Of an
advancing stock market, seem very con-
fident that interest rates will rule on about
the present level until autumn. 1t Is con-
coded that the outlook may begin to change
somewhat toward the end of August.
Tho stock market continued to make
Roadway this week. Its movements were
governed conservatively. Prices were not
permitted to advance faster than was war
ranted by the perceptible development Of
more general interest, Reactions were
frequent enough to satisfy everybody, and
on successive advances the leading stocks
we're carried a little higher each time,
The handling of the market throughout
the week, in short, has supported the Streets
belief in the existence Of a concerted cam
paign in the direction Of higher prices and
broader speculation between now and
autumn. 1t has been called highly pro-
fessional stock market, and has been crti
cized on that ground. but in spite of the fact
that the participation of Stock Exchange
traders in operations for the advance has
been disproportionate to the response Of
the outside public very casual inquiry
suf1ces to show that the professional ele-
ment is not loaded up with stocks. There
are several groups of spectators possibly,
who have taken on some large lines of stocks
recently, but their operations have not
made the market, and the inclination Of
the average professional throughout this
movement has been to seize small profits.
The market has been deriving its inspira-
ton from other than professional sources.
Since the first of Jure the leading stocks
have made advances of to II points, On
June Union Pacific sold at 1919. 1t sold
this week at 1919 On June 2 Steel pre-
ferred sold at 81 and Steel common at 25ls,
and to-day they sold at lo2 and 34H re-
spectively. Advances of points are very
numerous throughout the active list. The
advance of Reading common has been
greater than that Of any other active Sc
curity, but the case Of that stock. of course,
is exceptional. Since the first of June the
market has been advancing steadily on
out any outburst of speculative enthu-
siasm. On all this advance there has been
only one session in which the transact ions
tOuCleu tH6 maj VI IillllDl SidItS.
There has been no distribution Of stocks,
either to commission houses or to profess
sional SPECTATORS. The market has at the
same time been singnlarly free Of wild
r,lmors intended to infame the speculative
ina gination. The Western crowd has re-
Gently been responsible for few, b"t they
we're for the most part harmless. and ex-
cited very little general interest. So far
there has been no desire apparently on
the part Of the prominent bull factors in
the market to distribute stocks. Com
mission houses have been increasing their
lines very moderately OF not at all. II
would be a singular thing for this
movement to eliminate without at least
an attempt being made to distribute stocks.
Steel preferred Is now within points of
the high point reached in the first fortnight
of April, before the break. and yet as COM
Pared with the amount that was held on
mar gins at the elimination Of the last bull
at 104I, commission houses
may be said to be practically bare Of Steel
preferred at the present time. The same
il true Of Union Pacific, which IS selling
q ga above $780, The last advance in that
stock eliminated around 1877, with all of
q