Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-23
SOME WIDE DECLINES
DAYS LOSSES SHOWED A. GEN
ERAL DISTRIBUTION
Foreign Markets Have Shared Our
LethaTgy, and Easy Money Rates
Failed to Stimulate

session, resulting in some wide declines with
the closing weak ana active and near the
lowest The movement was attributed TO
the cumu attire effec; Of growing uneasiness
over the widesprel III reports of damage from
rust in the spring wheat region the discus
sion opened by the head of United Mine
Workers OF the coming struggle over the
renewal OF the agrze ment with operatives
which expires next spring. and the discour-
qsement of advocates of higher prices over
the failure OF the weeks favorable events
to stimulate any-demand for stocks.
Reading bore the brunt of the attack as
was natural on account of its long leader
ship of the speculation for the advance and
the consequent accumulation o. a vulner-
able long interest in the stock. But the
weakness of the list was not local and the
list of the days losses shows a general d s.
tribution in all parts of the market Union
Pacific showed some effective support and
the same was true of Amalgamated Copper.
but these stocks ultimately yielded with the
rest of the list
The weakness in the early wheat market
failed to reassure holders of stocks and
they continued to sell, large selling being
reported from the west. The large loan
Increase was the item of most interest in
the bank statement and was attributed to
the efforts of banks holding the proceeds of
the Japanese loan on deposit to get them
placed III the money market during the
week. The closing was decidedly weak.
Total sales of bonds, par value 5000
Market for Securities Apathetic.
The market for securities has been
apathetc this week and has borne the i'm
press of It's limitation to professional oper-
atoms of the smaller class. Some part of
this is undoubtedly attributable to the ex-
cessive heat. which made all degrees of
human activities burdensome. but 1t Is
doubtful whether this would have prevented
the execution OF orders In the market with
any strong motive in force for buying
selling
Foreign markets have shared the lethargy
of own and growing ease in money
rates has not awaited to stimulate any alb
sorptiOn of securities.
Developments of the week have been in
favor of values and confidence in the sound
ness of conditions and In future improve
ment has been widespread and firmly held.
But the attitude in the stock market has
been in waiting for these conditions to
awaken a demand for securities to cover
the large holdings which had been bought in
The expectation of the Improvement IN the
conditions. The investment demand grow
ing out of the July disbursements has been
Disappointing and has been especially ignl
for the usual investment favoriteS. IN
which stability and security are sought,
rather than large return. First-class rail-
road mortgages and preferred stocks on
which the rate OF dividends is fixed have
reflected none of the customary seasonable
demands.
Prospects of Dividends.
The high level Of prices at which ordinary
share capital was selling prompted the
large stress laid on prospects OF dividend
Increases
The fudllment this week of some of
these expectations IN the cases of impor-
tant representative stocks has revealed the
fact that the coming increases were so def
initely known or confidently foreseen
that much OF the buying had been accom-
pIished before acton was definitely taken
on the matter Former buyers who desired
simply to take a profit by resale therefore
found the demand induced by the good
news mostly exhausted end their efforts to
take profits forced prices backward AS IS
always the case where the speculation
seeks to anticipate an event, the coming
actions proved To have been exaggerated
By the predictions of an element of the
spectators, and those disappointed in this
way also have been sellers when the news
was out.
pected action remains 20 be taken there
has been a remainder Of speculative activ-
ity accompanied with varied rumOrs and
assertions. the truth Of which still are mat
tcrs OF conjecture. But the sharp ad-
vauces in Il few stocks OF this class have
not avaiIed TO hold The market against the
50 Hing OF the kind described. Thus there
was a element among the operators which
profesSed TO expect not only the advance
in the Union Pacific dividend to per cent
but an extra distribution besides and an in
ifial dividend on Southern Pacific.
Copper Dividend Disappointment.
The supposed intention to increase the
Amalgamated Copper dividend to per
cent rate Instead OF to per cent indicated
co,,S. for Acknowledgement RI cn,no IF he
spectators III that stock. On the other
hand rumor continued busy with alleged
purposes 20 make a large extra disburse-
ment on the stocks of the Northern Securi-
ties group and official disclaimers of these
iutcEtious have had little effect.
The substantial Importance of the In
creased dividends to the investment fabric
IS not 10 be lost sight of. In spite of the
larguor of the immediate response in the
stock market. Concrete evidence is thus
given of the growth in earning power and
OF the prosperous conditions existing and a
reliable index is afforded of the confidence
felt by competent financial observers in the
maintenance of such Cond tons for the flu
tUre. The news from the maturing grain
crops has been prime factor In fostering
this confidence although the upward move
ment in wheat late in the week on reports
Of damage TO spring wheat has been a mod
flying influence The cotton market has
been disturbed and subject to further &C
tive speculative influences and estimates of
the cotton crop outlook have continued TO
be unusually confused and obscure. An
other index of Industrial conditions TO
which great Importance is attached. Is the
revived demand for pig iron Indicated by
the placing of some large orders
Reports from the trade also showed some
large orders for future delivery OF steel
rails and some other lines of finished prod
uctS. Forecasts of the report of earnings
Tor the July quarter by the United States
steel stocks, due next week, also, played
part In forming sentiment on the iron and
Steel trade Railroad officials reported a
sustained volume OF trafffce and good
prospects for future movements on orders
prompted by growing confidence in the out
come or the crops.
The money market has offered no oh
stacle 10 the maintenance of prices and has
worked 10 a lower basis during the week,
Dcth Tor call and time loans. Placing of
foreign funds in this market has had Its
part In producing this result. something
Ike redundancy In foreign markets having
followed the half yearly disbursements.
Last weeks withdrawal of government de-
posts from the banks produced no disturb