The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-30
rTNzN6Yzy xND COMMERCIAL.
s--re-S-.f-Y

On q further display Of strength In the
Arst hour OF to-day's Stock Exchange
seesioh : ttSS; ,1Nef essioglal element was
tempt 10 take profits n1sdty. and although
pricee In some instances advanced frao-
tionaIly from Frdays closing the bulk
OF the days trading was done within
very narrow range OF fluctuations. and
tho net changes were nnimportant. Interest
continued to converge upon Union Pacific
md the Steel shares, and the strongest
Of these was Steel common. Union Pacific
ruled above l3i during the great part OF
tho ses. ion, but closed at 1907, unchanged
from Fridays final quotation. Steel pro-
ferred sold a. high as ioSX and no lower
than iO3ts, and closed unchanged at 1884
while Steel common which was the leader
Of the market In point OF activity, advanced
to 85L and closed at q recession OF but
u per cent, or at a net gain OF q. These
quotations wore Of more interest th9n
might be supposed. owing to the fact that
the highest prices touched to-day we're
also the.highest that have been made for
either of these stocks since this improve
ment in prices began. It Ia still a ques-
ton whether this, movement in Union
Pacific Is going to meet with serious oppo-
sition above ,l3i. That was the price at
which II stuck just before the announce
ment Of the increase Of the dividend from
4 to the rate OF per cent. After the ap-
pearance Of the bank statement prices
were heavier than they had been IN the
earlier trading The closing was feature
lose. Commission houses were not al active
as they were on Friday.
The feature of the bank statement most
commented upon was an increase OF SIS,
$50, 100 LII loans. This was Offset, however,
BY an increase Of IS, DAP, 100 in cash holdings.
Deposits increased s22, 346,7OO, and reserve
requirements therefore. wer, increased
IS, $50 875 but a the increase of cash or
actual reserve vas IS ,942.7OO. the banks
we're able to show the nominal increase Of
$3.50, OPS n surplus reserve. The total
surplus reserve Is now SIS ,305 DTS, as COM
pared with SIS, oss ,eos last year at this cor
responding time.
Tho continued and inscrutable ease OF
money IN Wall Street does not square
readily with the attenuated condition OF
the banks surplus reserve, nor with an In
crease Of more than SIS, 900 900 in loans this
week on top OFF, increase Of 5000 900
last week, bringing the aggregate Of loans
up to total the largest but one ever re-
ported by the Associated Banks. The in
crease Of loans report d at the end Of last
week was easily accounted for. The banks
had pressed call money upon the market
until the trust companies withdrew. Call
money continued this week to rule at too
low q rate to make it an object for the trust
companies to reenter the money market,
and the increased demands of the stock
market. therefore must have been supplied
by the banks. On the showing of the banks
alone there would seem to be too narrow
a margin Of reserve for financing a bull
speculation in stocks. but the true condition
of Wall Streets finances is not disclosed
In the weekly bank statement. 1t Is posi-
lively misleading as often as there is such
q shifting Of loans between the banks and
trust com oanies as has taken place In the
last fortnight. Those who possess original
and trustworthy information on money
markat- conditions are not In the least I'M
,asJ 70ver tho eaeleok. Opinion on this
point is almost unanimous There is
great surplus Of lendabls funds In Wall
Street. else money would not be as cheap
as it vs.. :: With tho crop moving period just
ahsid and with the surplus reserve stand
ing at only si6 100000, cali money is pressed
upon the market at 2 per cent and under,
and time money is .correspondipgly &C.
cesstbie., 49,. -.., " .., ...s.,..
The week has witnessed further improve
ment IN stock market, sentiment and also
considerable progress in tho direction of
higher prices. The crop scare on which
q selling movement in the stock market
was iraugurated last week petered out
very abruptly on Monday, and the selling
movement eliminated at the same time.
As soon as the aggressive bear selling
ceased. stocks were hard to buy. No one
who has had position on tho short side
OF the market this week needs to DO res.
minded of that fact. {. When the bear crowd
that had attacked the market aggressively
on tho pretext OF rust epidemic in the
spring wheat crop sought to get back what
It had sold the stocks were not Forthcoming
for the asking; to get them it was necessary
to bid up sharply. 1t is doubtful if all of
the abort. stocks that. were lost in the at
tackhave been recovered even yet. With
the flbsidence OF the crop scare the stock
narlet. began to harden all around, but it
still ,rfmained narrow. On Thursday It
bega& to, broaden .perceptbly. This prob
sblIswas, q response to the announcement
aftsR the close of Wednesdays market
thatahe Erie directors bad put the second
preferred stock on a per cent. basis. The
effeot of this announcement upon general
sentiment indeed, seemed mora pros
noukosda Ne ~ l5slfsss u eifher the Baiti-
more and Ohio. Union Pacific or Anal
gamated Copper announcements in the
preceding fortnight On Friday commits
sion houses began to take hold Of the market
with Increased confidence. and Fridays
market, WAS perhaps the. bgoadest and most
satisfactory in general respects that has
recently developed. The highest prices
of this recovery 80 far from the depression
Of April and May we're made on Friday
and today. The leadership of the market
was in. lhtdr Parifi aandsthe United States
Steel shares, and there are no better stocks
in which to make q market at the present
time, owing to the hold which they have
upon general confidence
The soreness OF those who sold stocks
heavily on Friday and Saturday Of last
week on a rust scare got up by the bull
crowd in wheat and were unable either to
recover, their long stocks to advantage or
cover their short contracts without loss