The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-25
FINANCIAL AND COMMERCIAL.


at all in view Of the reluctance Of many
speculative followers cr the advance to
carry stocks over the end If the week al
the risk Of having full grown war scare to
face on Monday, their uneasineiS on TINS
score being increased by the continuei
selling here for foreign account. Inc sur
prise was that the luarket should nave
shown the resistance it did on Frlday uhder
the combined pressure Of foreign selling
and professional prof, taking. In the race
of to-clay's further tlnscttlenent OF Elro-
pean opinion it would have been bad tacilcs
to force the market higher, The wiser and
more conservative course was pursued.
The market continued to show capacity
for taking stocks and prices held within
an avera ge Of about per cent. Of their
highest for the week Transactions were
not specialized in any conspicuous manner
On the contrary, the market exhibited the
same eVenness that had chara cterized 1t
throughout the weeks Improvement in
prices
The bank statement made better show
ing than Wall Street had been counting
upon II was. nevertheless, puzzling
exhibit Of averages. Last week. with no
stock market worth referring to. loans
increased s534lC0O For Il is week, after
five consecutive DAYS OF advancing prices
In the stock market, enta!ing a substantial
increase in the volume of transactions.
loans show decrease of S20is2Go. An
increase OF 50 SIP 200 in the cash holdings
of the banks reflects, Of course. the ac-
emulation of funds with which to meet the
July interest and dividend disburse men to-
Deposits show an increase of S6,5oS,loo,
bv which reserve requirements are in
creased 81 1927 OPS Deducting the increase
OF reserve requirements from the increase
OF cash, or actual reserve, there is left
$7SS5l75 to ne added to the surplus re-
serve. bringing the total Of that fund up to
$l5,o94675
It is believed that the mid-dis burse-
ments can be financed without any serious
disturbance of the money market. Bankers
are looking further ahead than July for
q real tightening of money. Interest rates
are expected to rule at about this level
until the beginning of autumn. unless in
the meantime bullish speculation in the
stock market should assume unexpected
proportions The weight of banking opinion
Is on the side Of easy money during
the months of July and August. Predic-
tons Of change after August would not
attract enough attention at this time Sc
riously to interfere with speculative opera
tons for the advance. other things being
favorable for Wall Street does not look
two months ahead.
Something is always happening 10 inspire
dstrust OF a rising stock market. 1t is
particularly unpleasant for fresh olouos
to appear in a sky which ha"ing been over
cast for long time was but beginning 20
clear up. No sooner had Wall Street begun 20
find cheer this week in signs of a concerted
initiative on thu bull side of the stock market
than all Europe became suddenly preoc-
cupied with political affairs Of somewhat
menacins nature. Our stock market con-
tinued steadily to improve, cisreGardins
the complications between France and
Germany, but 10y Friday the s'ration
abroad had become so disturbing that the
markets Of London. Paris and Berlin were
acutey affected. Heavy selling Of Ameri-
can securities b. London and through
London for the Coatinnn. resulted. Paris
sold English securities in London and
London sold american securities here. 1t
SO happened that ours was the best market
In the world to sell stocks on. Consols
declined in London again to-dar ana rentes
declined in Paris.
Our bankers have refused so far to take
alarm over the foreign situation The,'
admit that it will lear close watching aud
that developments which would adversely
affect this market are Of course possible.
but they have preferred to take tho hopeful
view Of probabilities L j. easily under
stood, Of course, why Wall Strce,', fer, ign
following has been so Indifferent to the
weeks Improvement here. This was dis
appointing TO thcae having interests on The
bull side. u was expected thai London
would respond really TO the kind If leaf'cr-
ship that has been shown in tto marRa:
since MonGay and probably; unGer normal
conditions II wouli have coro 80. but as
conditions were olr market presented the
spectacle OF advancing for five Gays con-
unuousl: With acute reakness vai'ing
In all the financial markets Of Europe
1t was evident from the manner in wlich
the market Vas supported on FRIDAY that
an effort would be made to continue the i'm
provement IN the coming week There wcs
perhaps a triAe more uncerta inty in to-
days short session, nut the market never
theless was we'll supported. Those who
have been buying stocks SO contideltly-
in the last few DAYS expect. Of course, 10
have a market e little later on II which TO
distribute the surplus of their accnmuls-
tlons A real war scare in Europe might
interfere seriously win their plans. 20
attempt is being made to disguise the fact
Barring onlinous developments in til.
foreign situation, however, a continuation
Of the upward movement is reasona bly, TO
be expected, At no time during the week
has there been market broad enough to
permit of any distribution worth consider
ing, and it is fair to infer that those who
committed themselves to the bull side on
Monday and continued steadily in ono
direction through the weel; re still so COM
mitted, and that the weight of their ACTIVITY
and influence will continue for vEile o be
on the side Ct higher prices
The bond market l. not improving as
rapidly as could no wished for. The best
that anyhcdy expects now is a Moderately
actiFe Gcm40i Tor iAve: tmcnt securities
incident tn the mi!ycar Il ,hursament>.
Tho response OF the market, outside
following 70 the weeks Improvement in
price,, although mnnihGsc ,tic. has rccn
about all tlg; could tc o%;rc'ed The
marie, ras rAar!c Worry la~sc!- within WILL
Street, HLar pro;c-s !onal snnt mont tcc, mo