The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-07-01
FINANCIAL .AND coMMERoflfa
SATURDAY, gune 80.

previously during the week, although
there was no p~erceptible change IN, itg
general character. AT, the opening prices
were somewhat lower than they closed
yesterday Under a renewal, Of the selling
pressure which was 40 strongly IN, CONTROL
Of the market on the preceding day, the
decline being assisted, as was alec the case
yesterday. by eome selling of stocks Wy
London Operators, whose homo fmhrlet
was unsettled, After this opening wefIkL
ness the market rallied slowly anti ifrea1rs
larly until the appearance tf ,tbeNweetnSt
bank statement, when another 'dHiveFvtsS
made which carried prices TO the loVssf
points yet touched since the decline begasfr
Q month ago. A final rally ensued which,
however, left quotations, Of nearly all tho
principal stocks at considerable net losses
for the day. Small gains wers madein the
American Smelling and Refining, BaliJ
more and Ohio, Union Pacific and Norfolk
and Western common shares, in Northern
Pacific stock and in some Of, The inactive
issues, but elsewhere declines we're general.
There seemed little Of importance IL the
days news. 4 1t was certainy that the end
Of the week would witness the adjournment
Of Congress, tho grain markets were lower /,
RShhu upOh nv .pESNdl0IcC IT ooohoi ain
clearer weather in the Northwest, where
complaints Of too much rain have recently
been heard, and the Journal OF CopaD,crce's
report covering the progress Of the cotton
crop during the month Of dune showed i'm
provement in the condition OF the staple.
The weakness Of the London market APP
peared to be due to uneasiness felt there
over the probabilities Of exports Of gold
TO this country and France, and fsars req
garding the approaching financial ssttle-
ment in Paris. The weekly bank statement
was perhaps not as extremely favorable as
was expected, although it was by no means
unfavorable. Bank loans decreased dur
ing the week 1913 900, bank cash increased
s1,17o, 900, and the bank surplus still stands
ut O higher figure than that Of a year ago.
The history OF the stock market during
the week has been that of a sharp and rather
steadily continued depression in prices,
although toward the end of the period q
fairly large number Of professional speou-
lators, ordinarily accounted shrewd declared
their conviction that the decline had been
pressed too far and that barring any I'M
favorable developments the market should
from now on do better; and it must be said
that reviewing the occurrences of the week
as a whole, they by no means explained the
lowering Of prices that was witnessed.
There has been, recently, q PERSISTENT pres
sure brought TO bear upon the market Of a
sort that seemingly indicates a settled de-
sign in the operation rather than a general
necessity broadly and clearly indicated and
affecting all holders Of securities. 1t is, Of
course, very we'll known that for some time
back banking interests have been conserva-
tive in their market views, basing their
opinion in the main on the more or less I'M
certain aspect OF the money situation. It
has also been apparent that the demand
on the part Of the public for securities was
slack. But all this did not logically suggest
that the general stock market should be-
come weak or that certain securities in
which definite reasons for strength were
offered should not advances. There were,
II is true, SOME pretexts for the oourse Of
the market.i ia the weeks events, but in none
Of these were factors y that would under
ordinary circumstances be effective in in
ducing considerable declines in security
quotations The P~ostponement by the
Chic 60, Milwaukee and st. Paul Railway
Company of tho announcement OF its
financial plan for it's Pacific Coast extension
was, perhaps, disappointing.to t~he-specnla-'
tive element. The break 10 the marlborough,
Metropolitan stocks caused by the news
that the banking syndicate that had been
supporting the price of the stock had dis
solved, stories rega riding difficulties en-
countered in the construction Of the Penn
s~ylvania Railroads. tunnels under the East
River, the greater frmness Of call and time
money rates, largely due, presumably, to the
~xoHoroHNna Nv, tho hapEa for tho I,tlu
disbursements, and the final ruling Of the
governors of the Stock Exchange that
members Of the exchange must hereafter
pay the poll tax Of two cents on every share
Of stock sold irrespective of the par value
Of the security, were all, in a sense, ammuni-
ton to the bear party in the market. Con-
trariwise, sterling exchange fell to a. point
that brought about a reSuinptontot gold
imports, news of most encouraging charac-
tor was received concerning the crops, the
prospect became definite of a speedy ad-
3ournment of Congress and every item Of
information that could be gathered pointed
30 the fact that the general business pros
psrity Of the country was still at high tide.
From O strictly speculative point of view
q hindrance to a rise in the market has been
for some time the cautious policy Of many
Of our railway and industrial corporations
in the matter of dividend distributions. It
has been urged by hostile critics that many
Of these corporations were acting unfairly
toward their living stockholders in that
they were diverting too large a proportion
Of current earnings into permanent improve
ments.' 1t was admitted thatthese improve
ments would undoubtedly prove of benefit
to the companies concerned IN future years,
but the charge was that the expenditures
were being made too greatly at the expense
OF the present generation. The numerous
advances in the dividend rates Of many
prominent corporations that have lately
been ordered testify that il ground for this
criticism did exist In the past lit is now
diminished; and looking over the list Of
stocks many can be found whose yield Of
interest, either present or fairly ppspec-
tive, presents no such disparity with rates
for the use of money in the open market
a to bar investment. Whatever may be
the end in view, therefore, Of those who
have been engaged in pushing prices down.
ward 1t should be borne in mind by every
Intending investor that value and not manip-