Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-20

dulIness Of today's stock market was evil
dence OF the spirit of caution developed In
the minds of operators by the reactionary
tendency developed yesterday. The harden
ing of the rates for money seems now i'm
minent by reason OF the inception OF the
movement of currency on a large scale to
the interior. The abundance of the crops
to be moved and the very active conditions
of business which are themselves the in
struments of prosperity promise an extra
requirement on New York reserves The
extent of this requirement can only be
measured by it's actual development. and
now that the demand has set in it Is likely
to proceed steadily to the maximum.
The rise In the rates for call money even
without reaching the proportions of a strin-
gent market has an almost inevitable ef-
feet on borrowing fov speculative purposes.
Holders Of stocks on margin at the present
high level of prices are naturally solfcitous
therefore OF the developments of the i'm
mediate future. The bank statement re-
Elected only a small part of the expected
decrease in cash reserves. but the weeks
activity in the stock market resulted in
some expansion of the loan account so that
the increase In the deposit item Increased
the reserve requirement in proportion.
The net result shrinkage of about
$3.J00Oo0 In the surplus of the banks The
news from Portsmouth opened up the Dos
sibility of some important development IN
peace negotiations during the Sunday inter
val and the great doubt az to what its ma
ture might be added to the cautious dispo-
stiOn of the operators in the market.
Effect of Bank Statement.
The closing of the London stock exchange
subtracted something from the usual activ-
~ Of the market. The small declines or
the first hour were recovered after the ap
pearance OF the bank statement. the small
decrease In bank reserves compared with
the anticipation prompting the covering of
short contracts. The closing tone
firm. Total sales of bonds, par value,
81 100000.
The satisfaction felt In existing
ditions of business and industry and the
general confidence felt In the promise for
future prosperity have resulted this week in
an appreciable growth in interest in the
stock market and an increase of orders to
buy securities from various new quarters.
The volume of dealings at the stock ex-
change expanded materially and the course
of prices generally has been upward with
some occasional irregularty. The margin
of the increase In dealings Is not to be ac-
cepted wholly for account of this new
outide interest.
The medium thus offered for successful
trading in and out OF the market has been
taken advantage of by the professional ele-
ment to extend its operations. and there
has been much manipulation apparent to
further the purposes of the traders in turn
ing over their large commitments. very
large individual transactions have been
feature of the week. and concentrated deal
ings have been In evidence both on the buy
Ing and selling sides. One stock after an
other has been carried to a record price
level and while many important stocks
remain far below the maximum prices for
their whole history, the average list OF
stocks Is regarded ruling at the high
level of prices for sales recorded In this
market.
Selling to Take Advantage.
might he aynarted on account of this
fact, the selling to take advantage of I'M
precedented prices has been very large on
the part of the large element content to
take profit assured rather than risk the
hazards of future mutations. The con-
sequence has been a moderation In the
rate of upward movement. except for
the volatile high-grade stocks which are
CLOSELY held for purposes of investment or
of control. having to do with purposes OF
policy of larger systems.
Sorue of this class OF stocks have con-
tlnued to make phenomenal upward flights
In the active leaders the manner in which
the large selling to realize profits has been
steadily absorbed ard prices aggresslVely
though slowly advanced. has served To mn
press the speculative sentiment as demon.
stration Of confidence in the possibility Oh
still further advances.
The favorable news from the grain crops
has supplied the broad underlying basis for
ire ranfdence in the future. Railroad
traffic officials report that the ei1ect or tne
crop outlook is perceptloIe III the wins
ness of merchants in their territories 10
mace liberal orders for future consump-
ton of their customers. causing an eN-
pansion in the freight movement ana a
Constant encroach on the available equip
rnent at the disposition or railroads- -.
The railroads themselves are placing no
eral orders for supplies. ana the Sonse
auence IS seen In the activity Oh tne ulti 81
ant denartments of the iron and steel IN
dustry Demand for steel rails, plates LOT
car construction and structural SHAPES Is
reported eagerly made and IN NotuhIe w
t-opd the Willingness of steel mills To unoer
go for a definite period. The re-entry or
- I-nited States Steel Corporation into the
iron market for September Is reported
The Copper Market.
Adyices from the copper market show
s,etaIned demand for that metal at the al
vauced level of prices. Prospects are called
good for a very large demand FOR anthra-
cite. and fears of labor difficulties In that
industry have apparently subsidized Inc
foreign trade statement for July shows the
value of exports expanded by the large OUT
ward movement of cotton, provisions anu
manufactures In spite of the curtailment
of the cereal exports, and the promise OF
the large crop yields gives hope Tor the
correction of that discrepancy The cotton
crop still gives ground Tor anxiety, put the
control effected of the yellow fever situa-
ton has been a helpful factor to the south
ern railroads.
posed To draw it's conclusions as to the out
come of the peace conference from the be-
havior o! the securities Of the governments
concerned and as these have remained firm
in the markets peace treaty Is believed
to be probable. The dlscouraing tenor or
diplomatic news and opinions has not Seem
ed 10 shake this confidence In Wall street.
With no actual rise in the rates or inter-
est the dubious points in the money outlook
have been ignored in the stock market, al
though the indications grow that the sea-
sonable demand upon this center for cur
rency TO move the crops and for credits in
commercial transactions will be rather
greater than less than usual. by reason of
the magnitude OF the crop outturn and the
great activity In business which promises
TO result. Money rates are hardening In the
west and the drain upon New York re-
serves is evidently begun.
There has been a good bond market. but
nothing like the growth in demand that
there has been for stocks.
u 8 Is advanced one-quarter. the Is and
old Is three-eighths and the new 4s one
half per cent on call on the week.
NEW YORK BANK STATEMENT.