Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-05
BULLS AND BEARS


and steel trade situation are as
serted In weli-informed quarters to be
the underlying causes for the 10 point rise
| In Tennessee Coal and Iron stock IN less
than a week. for there have been no In
dfcattons of a resumption of the negotia-
tons for the southern iron merger that were
suspended in the spring. The special fact
OF immediate bullish Importance with re-
gard to Tennessee Coal Is the development
of its steel rail business
| The general fact Is the known supply
| of iron ore In the country and the probable
| fty of exhaustion In the course of twenty
years. II not earlier The new interna tionaI
| rail- pool, Of which the Tennessee Coal
| company Is not member. will. it is as
| serted. result in developing q great market
| Tor the companys output
GOernment finance Is discussed at length
| In the city banks July circular which says
tnat the treasury figures suggest the need
/ OF legislation of some kind at no distant
| day by way of increasing the public rev.
| enues. or of abandoning policies which call
| for increasing expenditures. The latter
| policy cannot seriously be considered" The
| circular says that the first four months Of
| the fiscal year just begun will probably
| produce total deficiency of from so. 600.
| 900 to S25,0oo.G00, reducing the treasury's
working balance to s50,000,000 or less by
| the end of October
AS 1T has been shown that the treasury
can get along with $4,000, 600, the govern
ment will have at command "a consider
| able sum to Offset treasury absorption of
, funds during the fall movement of curren-
cy. OF course, it must be borne in mind
that the Secretary of the Treasury has one
other measure Of relief at his command so
long as the depository banks hold any con-
siderable amount of public money
| He may In his discretion stimulate ma
tional bank note circulation by accepting
other securities against government depes-
| Its on condition that the United States
bonds thus released be pledged to secure
additional circulation. This agency here
tofore successfully invoked by Secretary
Shaw, would probably bring to the treas
| ury such high class securities as the Phil
| ippine and Hawaiian issues"
=
concerning general conditions the circular
says:
Foreign exchange during the mc1nth of
June remained steady. with slight adj
! vance. The rate for sterling on June 1 was
4:S' and at the close of the month 4.8115.
mat the advance was not greater Is due to
the fact that the low rates of discount
abroad was inducement to draw bills which
were put out in considerable volume. An
extra inducement was the prospect OF COW
erlng during the export season at lower
rates. Whether this expectation is realized
remains to be seen, as all indications point
to higher rates this fall than usual
Last years conditions not excepted, our
export statistics show decline for the
eleven months past of pretty nearly $40
Oo0OOO, but these statistics are of little
value in forecasting the market. as there
are other factors of which no official record
is obtainahle. which enter very seriously
into the situation However, the decrease in
exports rather accentuates the present stu
alton. In the event of the conclusion of
peace between the warning nations, it is
anticipated that considerable American
securities will be thrown on the market
and will have to be RENTED for. Gold ex-
ports have been resumed to the extent of
So, J00.0OO. as the initial movement
For the present this has been checked by
an advance in the Paris rate London.
but 1t is apprehended that this setback Is
only temporary one. Considerable GUAM
titles of stock bills being RENTED to
| this side. which also has very important
bearing. The situation abroad, as wei as
here. is one of expectancy, and it is al
ways the unforeseen which happens is and
! pretty serious complications have been ap-
pretended. the natural conclusion would be
that nothing of a very startling nature is
| likely to occur, and thus disturb the natural
| course of international exchanges.
Says leading investment broker:
"A well-to-do steel man who Is a Gus
| toner of mine tells me of pretty operation
| that has been going He says that he
| bought Steel common up to 81 after the
| last dip ana Steel preferred up to 99-IO0
| shares of the preferred for every 100 shares
| of the common. The dividends on the pre-
| both and leave a little over. He afford
| to wait for a considerable rise. 1 find that
| there has been lot of this done. There
was a great deal of 1t last year, when prices
| were more favorable. There has also been
| lot of buying sinking fund bonds and the
| common. 1t is still pretty operation, al
| though not so favorable The same method
| could be applied to other stocks and some
| bonds
The Increase of So 900 900 in money in
| circulation in this country outside the treas
ury from July l, 1904. to July l last testi-
| fies to a considerable increase in public buy
| ing power, when 1t is considered how small
| is the proportion of money in circulation
| TO bank credits.
| The exports of merchandise from the port
| of New York for the week ending Tuesday
| were valued at $10,742, 0a6. compared with
| S11. 43I 1923 in the preceding week and $1O.-
| ,263 in the corresponding week last year.
| From January 1 the exports from this port
aggregated sra. 234 $50, against $244. 763, 800
in the corresponding period last year.
| Bullish confidence was stimulated by the
! course of the market up to the holiday.
| And Wall street seemed to be of the opin-
| ion that the summer time was likely to
| have good business season after 1t.
I
| A. o. Brown & Co. said "Up to
| this time there has not been much public
| interest In stocks, but the continued actiy-
| ity and prospects of broader market dur
| ing the summer beginning to attract
outside buying. Excellent business condi-
| tlOHS, SOou crop prospects ana low money
| rates all favor an upward movement and
| we expect to see higher prices during the
! next two months. We advise buying the
| active standard issues on all reasonable re-
| cessions.''
|
| Dick Brothers & Co. said Sentiment
| is becoming quite bullish again and
| there is reason to believe that the profess
| sional interests who have started this up
| ward movement WILL from now on, get
| more help from the rank and file Of specu-
| latoTs."
| X
These are illustrative samples of the at
| titude which the ante-holiday price move
ment led brokers to adopt. Bond dealers.
| judging frorn their announcements look for
| activity in their line, and II expectations
| are met in this direction 1t would go far
| to encourage trades in stocks.
| Mugs, Friend Of Engineers.
From the Kansas City Journal.
III, IT. IT.