The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-02
FINANCIAL AND COMMERCIAL.
SATURDAY, July 1.

Tho stock narkat exhibited good deal
Of genuine strength In to-day's brief ses-
sion. The buying was well distributed
Union Pacific and the United States Steel
shares, which had been heavy for two days
under profit taking by followers OF the ad-
vance who were unwilling to carry long
contracts over the end OF the week, recov-
cred sharply. and there was some fresh
buying also In other tocks to which the
realizing OF Thursday and Friday had I'M
parted a reactionary tendency. London
houses bought stocks where previously
they had been selling. Operations OF
somewhat concentrated character IN Erie
common advanced that stock to the hig hest
point 80 far touched on this movement.
This was.a natural response In the common
stock to the strength OF the first and second
preferred shares on Friday.
In the late trading Brooklyn Rapid Tran
sit became the most prominent feature OF
the whole market. advancing abruptly to
NIX and closing at the extreme top. All OF
the stock offering around 10 was taken
before the close Of Fridays session. The
initial quotation this morning was 7oT,
and for an hour or more the stock huctuated
narrowly between 7oA and 7Ol, in semi
torpid condition The demonstration on
which it advanced later to nv was OF
worry aggressive character. Those who care
less about what the company is doing than
for the speculative possibilities Of the stock
are convinced from the buying that has
followed 1t up from around 85 that bull
campaign Of some importance is under way
Sharp readers OF the tape are able to detect
IN its movements the inspiration OF one OF
tho most adroit operators In the Street.
His participation In the movement. OF course.
may be incidental to operations OF more
serious origin, but it serves, nevertheless,
to give SPECTATORS certain degree OF con-
hdence in the stock as a trading proposition
There has not been a really good campaign
on the long side Of Brooklyn for several
years. 1t has been long time since the
stock had any such speculative support In
Wall Street as It now enjoys.
Very little attention was paid to the bank
statement, possibly because the community
had made up its mind not to be surprised
by anything that it might show on the eve
Of the July interest and dividend disburse-
ments. Preparations to finance these dis
bursements were reflected on Friday In the
advance OF the call interest rate to Q per
cent. Prominent banking houses loaned
money heavily on that advance in the rate,
and some Of the money thus provided may
be recalled on Monday No further I'm
settlement after that is looked for. The
bank statement showed gain Of 81 ,375, 700
in thu cash holdings Of the banks, whereas
ha of mi had in
dictated a loss OF about that amount. 1t
showed also an increase OF sls.o5e,3OO in
loans This large increase in loans caused
34e, 900 in deposits increased reserve re-
quirements ASH. 500, and as the increase
OF cash or actual reserve was only 81. s75, 700,
there resulted shrinkage Of $3,4s5,s0O in
surplus reserve. This brings the total OF
surplus reserve down to l2,65s,s75, as COM
pared with s36, los, 800 for the correspond
ing week of last year and $s,377, e75 for the
corresponding period OF 1908.
The week on the whole has been one OF
improving prices. The most pronounced
symptoms Of revolution that have yet ap-
peared in Russia continued depression In the
financial markets OF Europe. the exporta-
ton OF $s,3ooOOo gold and violent adj
vanoes in speculative grain and cotton
options all were steadily disreg arded in
the stock market. On Thursday a reac-
tionary tendency developed under the
profit taking OF cautious spectators.
Many followers OF the advance were I'M
willing to remain committed to the long
side OF the market over the end Of the
week. with the Fourth OF July recess 30
near at hand. Under this realizing, which
continued we'll into Fridays session, tho
market showed a great deal Of resistance.
The buying at moderate price recessions
was apparently stronger than the selling.
The general strength exhibited In to-day's
short session and, above all, the ease with
which prices were advanced proved almost
conclusively that the technical position Of
the market was unimpaired.
The strong point about the market, bull
ish commentators keep insisting, is that the
commission houses are not loaded up with
stocks and have . big surplus Of margins.
They Ind In this condition Of things the in
centive for 4 built campaign in the market,
aiming at q distribution OF stocks, II pos
sible, on higher level Of prices. There
has been no distribution Of stocks to speak
Of on the advance that has taken place In
the last two weeks. It Is doubtful il CON-
mission house holdings on the average have
increased 10 per cent. There are exoep-
tons, Of course and 1t is known that sew
eral OF the larger speculative houses. one
In particular, have been taking on stocks
pretty freely, but this is held to be without
prejudice to continued improvement in the
market by persons who are convinced that
the interests OF prominent banking organi-
zatiofls lie In the direction of better stock
market during the next sixty days. 1t is
believed, indeed, and not without good
reason, that some Of the most influential
factors in Wall Street are cooperating on
the bull side OF the market as they have
not done before for many months.
1t may be said with all reasonable assur-
ance that the weight of influential banking
opinion is on the side OF higher prices
Those who are at present in control of the
market believe that the indifference ex-
hibited up to this time by the markets
outside following can be overcome and that
after the holiday the response of commits
sion houses to a further improvement in
prices will be more pronounced than it has
been to the improvement of the last two