Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-08
Unsettled Conditions Have
Marked Weeks Market.
VERY WIDE AND IRREGULAR
Weak Bank Return Dissipated Last
Days Gain.
CLOSING A MARKED CONTRAST
All Departments Of Business and In
dustrial Life Show Well-Sus-
tanned Demands.

ld12lCd OS1i4aANo"
NEW YORK. July Until 1t was I'M
settled by the publication Of the weak
bank return, todays stock market showed
the good effect of turn in favor OF sup
port OF the market which appeared yester-
day after the varying struggle of the pre-
vious portion of the week. A stimulating
influence was the buoyancy of the Hill
stocks These were affected by revival of
the ore lands deal rumors, and United
States Steel stocks responded in sympathy.
Other speculative leaders moved upward
concurrently. Covering of shorts for out
standing bear accounts admittedly played
a large part In the buying. The gains
were abruptly lost upon the appearance OF
the bank statement, which was decided
disappointment.
rency movement had given rise to hopes
of a small gain In cash. The requirement
of the trust companies to comply with the
new law increasing the proportion OF re-
serves to be held in their vaults has been
discussed for some time, but 1t was not
supposed that the withdrawal OF the whole
amount needed would be deferred until the
exact date of the required change. The
banks loss of $S,908, eco cash during the
week seems to point to that procedure
having been followed 1t is suggested.
however, that the banks may have been
making some return of government depos-
its in anticipation of the call for $4,000, 900
to be paid into the treasury on July 10.
Rates for sterling exchange were main
tanned In the nominal market of today and
the money market was reported easier.
The Bank OF England secured gold in the
London market without apparent competi
ton from New York. The rise in sterling
exchange and the fall in the discount rate
at Paris also relieved London Of money
pressure. There was another transfer
from here through the subtreasury of
100000 to San Francisco, which Is due to
remittance for payment of insurance losses,
the settlement of which is nav makir-
progress. Prices made some recovery agal
at the last and the closing tone was steady
Total sales OF bonds. par value, S2OOO,0oo.
Heavy Liquidation.
Conditions in the stock market have been
exceedingly unsettled during the week and
the wide and irregular movement of prices
reflected the influence of further heavy
liquidation and occasional struggles against
the reactionary tendency, with momentary
success. The pressure of the July settle
ments was in evidence with the opening or
the week, resulting in a considerable call
ing of loans on stock market collateral and
a furry In call money to per cent. On
Tuesday the maximum rate fell to I per
cent and on Thursday, after the holiday in
terval, to Az per cent. This quick passing
OF the effects OF the semi-annual require
ments afforded some encouragement to
speculative holders OF stocks, and prompted
a professional movement for a rally, which
was furthered by the extension of the short
interest in the course of the considerable
decline preceding.
But speculative hopefulness was dashed
again by the obvious pressure to liquidate
which came out to take advantage of any
sign OF strength in the market. The SELL
ing In evidence In the market received
rious special explanations from time to
tr1a hrt cEa iaaI af ty,a
likelihood of SO many special causes con-
curing and the suspicion persisted that
steady liquidation of a kind to exercise an
influence upon views of the outlook for
values was going on
On one day the supposed closing out of
an important account for estate In proc
ess of settlement was advanced in explana-
ton; on another selling for account of a
board member intending to retire, and 80
on The impression got abroad that some
of the selling OF high-class securities was
far account of life insurance companies,
which are put under new restrictions as
10 the character of their holdings by the
recent law. There was believed to be fresh
liquidation for account OF fire insurance
companies In the course of preparing for
paying off the San Francisco losses. This
was remarked both in New York and Lon
don.
Buying Demand Inert
At the same time the buying demand con-
tinued inert and the usual refnyestment de-
mand which is usual feature of the period
OF large disbursements of dividends and
interest was unappreciable. This was true
OF the bond market In an even more marked
degree than in stocks. Such buying as
there was seemed to be confined to the
short account. and as this proceeded the
market was quick to show It's weakened
technical position, due to the reduction Of
this potential source of support
Accepted financial authority offerad an
estimate OF new capital issues for the first
six months of the present year showing an
aggregate of par value OF sS27 .7o8 600. or
within $42oc0a0 OF the new offerings for
the whole of the year 1905. Most of these
new issues are bonds and large Issues of
short-terrn notes are included. which must
be funded into more permanent form in the
not distant future. 1t is pointed out as a
contrast with the period OF undigested Sc
curlties In 1903 that the present glut is of
hlgh-grade securities. while at that time
Immense new capital creations growing out
OF great Industrial mergers and issued at
heavy advances over previous valuations OF
the properties merged were responsible for
the condition of indigestion. Yet, the leth-
argy of the demand In the present market
is scarcely less pronounced than at that
time.
The immediate situation is considered to
be complicated by the proposed issue of
s3o.oO0.oOO of Panama canal bonds and of
sl2Wo.0Oo New York city bonds which are
to be offered this month 10 per cent
sublAiiinout on SUBSCRIPTIONS TO new BalG-
more and Ohio stock. which viii call for
upward OF H1.ooO.0oo, and a 100000 sub
scnption on Canadian Pacific stock also fall
due this month. In the case OF the govern
ment bond issue an amelioratinR effect Is
looked for from the additional basis AFFORD
ed FOR issue OF bank notes.
BY the time these requirements are out
OF the way II Is expected that the interior
demand for currency to move the crops
Will have begun. Last weeks expectations
OF large engagements OF gold for import
have been disappointed. arrivals In London
having been secured by the Bank of Eng
land and competed for by Paris. The Sc
curing OF sl.5o00oo gold in Australia for
New York was confirmed and hopes are still
entertained OF a movement from London.
Stock Market Contrast.
The pressure on the stock market is In
strong contrast with the prosperity and
bright prospects uniformly reported from all
departments of business and industry.
While uneven conditions are reported from
time 10 time for the crops. general conf
dence exists In the promise of prosperous
hsrvests In the total outcome. Authorities