The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-02
FINANCIAL AND COMMERCIAL.

within q very narrow range, none Oh inc
pNincipal issues chan cling more than n PER
cent from Mondays closing level 1t was
as II those who are handling tho market on
the bull side had determined to see with
what grace IL could take care Of itself for
day The manipulation ives confined
chiefly to specialties. In the general mar
ket there was no evidence OF concerted
purpose to advance prices. II looked 1T
times as II q good many stocks had been
placed over the market, notably Steel pre-
ferred around i0+. Analgamated Copper at
IS and Union Pacific around 1Si, and there
was not enough general buying power to
absorb the offerings at these prices. Steel
preferred did sell at 1914, Amalgamated
Copper at ssh and Union Pacific at 1871,
but they closed, respectively, at 1884 s4h
and 100, with the general market In re-
dictionary state. On Mondays level Of
prices trading had become somewhat
narrow. and when the market showed no
signs OF broadening this morning. the ten
dency being rather toward further con-
traction and unevenness, the bear con-
tingent became more aggressive. 1t made
some Roadway in the last hour and sue
ceeded in closing the market on a slightly
lower average price level. 1t will be seen
from the list Of net price changes, however,
that the declines were unimportant. The
United States Steel stocks showed rather
more than the average resistance to the
professional selling movement inaugurated
in the afternoon.
After seven consecutive days Of advanc-
ing prices a reaction is not surprising,
and the possibility Of its going q little
further could be admitted without the
least prejudice to general position on the
bull side OF the market. Itmay be asserted
in this connection that there has not been
a reaction in the least four or five weeks
that has failed in some way to benefit the
market. Most experienced operators be-
lieve in having frequent reactions In bull
market. They prevent the trading from
becoming too onesided and encourage
general buying. Conservative sentiment
is estranged by the more impatient tactics
Of those who would make . market by
spectacular means, forcing prices up at q
rapid pace day after day. The fact Is
then advertised that the market Is in the
control OF plungers and the favorable in
fiuences acting upon sentiment must be
overwhelming indeed to overcome the
prejudice thereby aroused in conservative
minds. Since the first Of June the stock
market has been developing in a natural
and orderly manner. When 1t has gone
ahead too fast 1t has been checked, and
when It has been attacked it has been pro-
tected. 1t Is market that appeals much
more strongly to a Thoughtful speculator
than the one the Western contingent bulled
so rashly q year ago. Brokers naturally
are impatient because business does not
expand more rapidly, + takes time to
inspire confidence.
People can be bullish on Lackawanna,
the highest priced stock in the market,
in the quotation Of AIS, and feel dubious at
the same time over the prospects Of securi-
ties that are lower priced and not 80 well
established. All stocks, Of course, are
not Lackawannas, and many never will be,
but the same factors that have made Lacka-
wanna worth so much are still generally
operative. Lackawanna was highly specu-
lative feature Of the stock market not 80
many years ago.
The monthly circular OF the most widely
known national bank In Wall Street attracted
a great deal Of attention to-day because
1t summarized in figures the expansion in
funds that has taken. place in the last few
years. The national bank circulation OF the
country has passed the mark Of $500, 0oo, 900
and is now the largest In our history. At
the close Of the Spanish-Ame War the
total OF such circulation was but S240, 900 900.
Since the autumn Of 1885, briefly, there has
been an expansion Of ITO per cent. in our
lot In
same time the resources OF national banks
have increased from $4,000, 0oo, 900 to ST.
$50, oOO, 900. and the resources Of other than
national banks have increased from 81 $780,
OoO, 900 to 50, 900, 900, 600. The cash holdings
of national banks have increased $44o, 0Oo,-
900, and Of other than national banks $780,
OOO, OOo-a total increase in cash holdings OF
$50, ooo 900. Notice is also called to the
effect OF the withdrawal on July is Of about
81, 0Oo,0 900 OF Government funds from de-
pository banks. Over 100000 OF the
Government bonds thus released have
been made the basis for new circulation.
It lie conceivable that the withdrawal Of
Cover nment money from the banks entails
an expansion rather than a contraction Of
money supply. II the Government dis
burses the money it returns to the channels
Of general circulation. and the Government
bonds that have been pledged by the banks
as security against Government deposits
when released are made the basis for in
creased bank note circulation. That is what
has happened In this instance.
The Governments weekly crop report
to-day took the edge of some fresh rust
talk emanating from speculative grain
sources in the Northwest. Wheat was
weak. Cotton options also declined.
Those who have based q bullish position
on the stock market on the belief that the
harvest as a whole will be satisfactory
have 80 far nothing to worry about. Each
week that passes without an accident to
the crops makes their position more secure.
An abrupt break in st. Paul to $50 in the
last half hour Of trading to-day was a curl
GUS incident-curious because Of st. Paul's
position in the market. There Is posi-
tive scarcity OF the stock. Instances are
known where large houses. are lending
out all that they have to miscellaneous
borrowers. There is probably a larger
short interest In the market than would
be supposed. The same bear crowd that
attacked the market week before last
and was defeated has been selling stocks
A gain on the scale up.