The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-16
FINANCIAL AND COMMERCIAL.
SATURDAY, July is.

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r,ishinS In to seiSe their profits, and a state
mint tSat Ii much more favorable than
Anybody has expected will sometimes In
A3noe a eharp buying movement In the
lat half hour of Saturday session. tTcdere
who are snort Of stocks covering on IL aho
others buying for long account on tins
ciianoe Of having a strong Monday morning.
opening on which tN sell. but to-day, aiter
tn appearance OF q bank statement whicn
wts so.muoh stronger than anybody lookeo
fdr that II could hardly be explained, the
market did literally nothing Previously
to.the publication OF the weeks banking
results 1t had been strong aud very duh.
a9h afterward 1t continued both dull and
sttbng. about tho only feature OF the late
trading deserving comment being the
aggressive buying Of Union Pacific Inc
aSeions Of that stock to-day only confirmed
FEday's indications Of strong accumula-
tien, Of whatever origin 1t ray be-
The bank statement reported gain In
cash holdings much larger than the known
Movements Of money had indicated, viz,
S1,74s,7O0. Equally surprising was de-
crease'of $3.50, 400 in loans The shrinkage
or loans and increase Of cash 30 nearly
balanced that there was only nominal
Change in the total Of deposits-an increase
of $7l3,lO0 The increase of reserve re-
qttireme nts was but $l7s,275. so that prao-
tically the entire gain in cash was reflected
inthe surplus reserve, which was increased
81, be5, 1925. The total Of surplus reserve
iA;now sl9,s23,25O as compared with $44,-
Cd $50 for the corresponding week OF last
year.
The banks c,lstomarily increase their
cash holdings during the month OF July
preparatory to meeting the demands OF
the interior for funds with which to move
the-crops The outward movement begins
generally In the latter part OF August
Every year at this time Wall Street Is as
sured that the West and South will be able
to finance the movement Of crops without
any large assistance from Wall Street, and
the money goes out Of Wall Street just
tho same as always. notwithstanding these
assurances, because the West and South
keep their surplus here and draw upon
It. The autumn drain upon our money
market has been increasing year after
year It amounted last year to more than
10000 900, as compared with only little
more than $4,000, 900 in the year 1901. The
effect OF this weeks bank statement, how
ever, will be to allay for the time being
Wall Streets fears Of tighter money
market In the near future. 1t shows an
increase in the apparent margin Of reserves
with which to finance st ock market opera
tions. The money market prospect, how
ever, is not essentially altered. 1t will be
noticed that the total of surplus reserve
is considerably less than half what it was q
year ago. There is a large amount of
money on deposit here that is subject to
quick. call. Further gold exports on ac-
count of Japanese loan trer actions are
to be expected. Indications continue to
favor higher range of interest rates within
the next thirty or forty days although
/. nothing in the nature Of d stringency seems
at all probable. The word of bankers
may be taken for it that there ia nothing
In the money market outlook at the present
time that IS prejudicial to the stock market.
A higher range of interest rates would not
restrain speculation if stock market in
dueements were satisfactory.
From time to time a rising stock market
viii become narrow ct an advanced level
OF prices, owing to the demand on the pert
OF commission houses and conservative
spectators for a reaction. and when that Is
the case q sharp setback ia often bene-
fetal. Toward the end Of last week the
market was showing sigAs Of narrowness,
and some OF the more influential bull in
terests believed then that a quick reaction
would do It good. On Monday prices be-
came reactionary and on Tuesday they
broke sharply, heavy selling by the West
ern contingent helping the market down.
On "Wednesday there was sharp recovery
that caught many Of the professional traders
short OF stocks. and during the remainder
OF the week, without any special activity,
the market ruled strong and in some d-
rections gained little ground. The West
ern selling by q crowd that wanted to clean
UP In the market and 60 away left the tech
meal position essentially the same as be-
FORE and at the end Of the week brokers
were commenting again upon the apparent
scarcity of floating stocks The buying
power on the reaction did not come from
the commission houses, for those that had
been taking on stocks under the Western
leadership were sellers, too, on the idea that
after the Western bulls had got out the
market would fatten out and become stale.
The buying must have been Of a very strong
character.
In the latter part OF tho week the Harri-
man Paciics, the Hill stocks and st. Paul
became very prominent featur es of the
market. Northern Pacific. advanced to a
high record price above go and Great
Northern preferred also advanced sharply.
1t was upon Union Pacific however, that
speculative in:c:os. principally converged.
The buying, while not aggressive, was
impressive enough to keep attention fixed
upon the stock 1t closed to-day above
100 after heovy speculative realizing during
the week for the account of the Western
crowd and ono large individual operator
who Il about to leave for Europe.
Wall Street will be greatly disappointed
II the Hartman Pa andthe Hill stocks.
with st. Paul possibly included, do not
become very prominent features of the
market next week The basis for an active
speculation in them viii be the probability
Of an early distribution Of the equities
resulting from the Northern Securities |
participation. The return OF two very
prominent railroad flnanoiers, one from
Europe and the other from an outing in the |
North, is likely to he followed speedily |
by the announcements that Wall Street has |