The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-23
FINANCIAL AND COMMERCIAL.
SATURDAY, July "a.

to-day IN nuoh more aggressive hihhAo''
and declines Of 1 to 8 per cent, appear In the
list OF net price changes. This 10 the first
effective demonstration that has been made
on the bear side OF the market for several
weeks. Saturday in midsummer Is day
That Is likly to be chosen for raiding the
market. owing to the absence OF 40 many
persons who go away on Friday to spend
the weeks end. The Wall Street attend
ance to-day was only nominal. The bear
contingent had a free field. Heavy selling
through Western sources was industriously
assisted by a professional element whose
function was to put prices down wherever
stocks were being offered. This combina-
ton OF Western selling and bearish agrees
sion ahead Of It made it seem at times as II
stocks were being sold as low as possible,
There was a suspicion. too, that good deal
OF the Western selling was for the short ac-
count 1t seemed to be heaviest in Read
ing, as was the case yesterday. Reading,
at any rate, has borne the brunt OF the
selling pressure for the last two days. 1t
was singled out, no doubt, on the theory
that it's position in the market was vul-
nerable. One reason why the Western
selling of this stock has been 80 effective
Is that the same crowd was bulling it wildly
at higher prices. On Friday the market
was attacked because of the advance in
wheat, and tho granger stocks. with the
possible exception of st. Paul, suffered
less than the average. To-day, among
other reasons for selling stocks, was the
reported appearance of yellow fever IN
the C1uth and Southern railroad stocks
were not specially weak,
1t would be surprising If the short in
terest has not increased heavily since
Thursday
The whole bank statement turned on an
increase Of little more than Sl9,000,oOo
In loans. This loan expansion was not I'M
expected, and the reasons for it are easily
understood. The only way in which the
banks could employ the money received
with subscriptions to the Japanese loan
was to put it out on call and in doing this
they depressed call interest rates to the
level at which trust companies invariably
withdraw from the money market. Their
withdrawal entailed a heavy shifting OF
call loans from the trust companies to the
banks. hence the large increase reported
to-day in bank loans. The whole process
might be reversed next week. 1t certainly
would be If interest rates should advance
to level that would induce the trust COM
panies TO Renter the money market. There
was buta nominal change in cash holdings
an increase OF S217O0. Deposits increased
$ls,3sO, 900, whereby reserve requirements
we're increased s4,573, 800. This entailed
a reduction of little more than S4,5O000
in surplus reserve The total surplus re-
serve is now sl4 ,949,95O, as compared with
$50, 900 900 for the corresponding week
of last year and $1s9l5, 400 for the oorre-
spending week Of 1903. After the publica-
ton Of the weeks banking results the
selling pressure upon the stock market
was renewed and the lowest prices were
made in the last half hour. Stocks gener-
ally closed at or near the lowest.
The week has been one Of considerable
irregularity in the stock market. The
highest point Of this recovery in prices
so far was reached on Wednesday, but 1T
was evident even then that the market
was becoming narrow and unresponsive.
On Thursday the Union Pacific dividend
rate was increased to per cent. by the
declaration of semi-annual dividend
OF ~ per cent. This, however. had been
expected for some time and no speculative
response was expected in the stock, then
selling on the level Of 100. On the same
day the Amalga mated Copper directors
declared quarterly dividend OF N per
cent. placing that stock also on a per
cent basis, and although this action had
not been preceded by any bullish activity
In the stock, but had in fact been
preceded by display Of weakness. the
announcement occasioned an advance OF
only little more than points. all of which
Improvement and more besides was lost
before the close OF the week.
1t was constantly urged during the week
as an argument in favor OF trading posi-
ton on the bear side of the market that
prices were unresponsive to good news.
and although the fact could not be dis
puted, others argued that tardy stock
market response to fav orable influences
is not always a sign OF weakness In sup
port Of THE contention the actions of the
market after the announcement OF the
Equitable settlement and the Japanese
naval triumph together we're recalled.
Professional sentiment, however. became
impatiently bearish because prices would
not go up, and concerted effort at length
was made to see if they could not be made
to goccown. They did 60 down. sharp
reaction was brought about by the efforts
of a bearish professional element and some
heavy Western selling combined. This
Western selling no doubt was based largely
upon the advance In speculative wheat
options, due to discoveries OF rust in the
Northwest.
A vi lent, rise in wheat and continual
ton of the bull campaign in cotton futures,
both movements being accompanied by
alarming reports concerning the condition
of those crops, We're doubtless the influences
that contributed most to the development
OF bearsh speculative sentiment on stocks
in the latter part of the week. The extreme
apathy of the public was another. II the
market had been strong instead of reac-
tionary the awkward defeat of the Balfour
ministry doubtless would have been dis
regarded. AS it was, however that matter
was dragged in as pretext for selling
stocks. The uncertain political situation
undoubtedly caused some uneasiness in
the London market, but the London specu-
lative interest in Americans recently has
been very meager.
The weather that has prevailed this weel1