Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-29
Weekend Closing Sluggish and
Irregular.
A RELAXATION IN MONEY
The Bank Statement Proved Most
Disappointing.
THINK BIG MEN ARE BUYERS
Sale of New York Bonds Index Of Con-
ditions-Sustained Rates
for Time Loans
THINK BIG MEN ARE BUYERS


exchange. but protective measures for the
market were evidently in force. The move
ment was rather sluggish and irregular and
the price level was held I'D by the medium
OF some new advances at points not con-
spicuous during the week The stocks Sc
iected were mostly in the class of indus
trials and specialties. especially among the
metal industrials and coalers.
The stocks OF the great transcontinentaI
railroads and the trunk lines were COM
Tarativeiy quiescent. but not under active
pressure. Dealings continued very large in
United States Steel. and that stock rose TO
within small fraction of 40, which had
been promised for ii this week by its specu-
lattve sponsors.
Amalgamated Copper and the smelling
and lead stocks were strong and the volatile
hlgh-priced coalers made characteristic
flights.
The bank statement proved a disappoint-
ment and was followed by pronounced
reaction in prices. The cash item showed
only about half the expected increase and
as the deposit item was swelled In addition
10y loan increase of nearly S13, 900 900 the
surplus was slightly encroached upon by
the added requirement. The loan expansion
was reminder Of the needs of an extern
sive stock market campaign for facilities
The changes In the money situation, how
ever. are evidently insufficient to affect the
immediate ease OF call money. There is an
expectation expressed also in speculative
quarters that the surplus resources of the
United States treasury will be held in read
mess to protect the money market from
any dangerous stringency during the fall
support was forthcoming at the reaction
after the bank statement, and some stocks
rallied vigorously to the best OF the day
The closing tone was irregular.
Total sales of bonds, par value, $685. 600.
Evidence of Awakening.
The stock market this week has given evil
-dence of an awakening from its indifference
to the prosperous progress of the affairs
OF the country. This indifference held the
market in an apathy in face of an uninter-
rupted chronicle of growth in all depart
ments OF industry for some time past. There
has been an animated speculation in a
small number of prominent securities
which, by their influence upon sentiment
have caused a sympathetic response in the
whole list. Prices have worked higher in
consequence. The factors bearing most eft
fectually on the renewed speculative activ-
tty, however, have had to do more largely
with the personal element than with any
forcible new recognition of the conditions
of prosperity in the country
The impression is widespread among the
operators III the market that the dig men
in the financial world are buying stock with
which they are closely identified. The vari-
ations on this theme have constituted the
staple OF the weeks news in the market.
great many rumorS have also circulated
OF special developments regarding the prop
critics foremost in the market movement.
But these rumors have been kept within the
realm of conjecture and without authentic
confirmation. and have met in some cases
with explicit denial. without affecting the
course of the movement on which they
were based.
Animated Buying Movement.
A case in point was the meeting of the
directors OF the ST. Paul on Thursday. with
all the most influential members in attend
ance. and general conviction in the street
that the long-heralded plan for financing
the Pacific coast extension. involving valua-
BILE rights to stockholders would be an
nounccd, Instead came the announcement
that no plan was Forthcoming al present
following which an animated buying move
ment broke out III the stock market.
The same effect had been produced In less
degree last week by the adjournment of the
Union Pacific directors with the announce
ment that action on the dividend and decis-
lon on the Southern Pacific dividend had
been deferred. the former being left to the
executive committee. This action of the
market. In face of speculative disa appoint
ment was In marked contrast to its former
tendency TO sell on good news such as div
idend increases and the like. and was the
conclusive index OF the change In the spec
ulative temper
The foundation for tho current faith in
the buying of stocks by large capitalists
was, primarily. the coincidence of the ap-
pearance OF buying orders in the market
with the return from vacation trips abroad
of various leaders In the financial world
the list including James StiIlman of the
National City Bank William Rockefeller
and j. z. Morgan. The brokerage houses
which executed the conspicuous buying or
ders were those supposed TO act habitually
for the large moneyed interests thus repre-
sented-
The impression was emphasized by the
circulation OF rumors of large banking
loans in the interests of the financial par
ties TO whom most influence in leading SEN
tlment attaches These are familiar accom-
panIments of every active campaign in the
stock market, and the distinction between
the true and the false In the assumptions
based such Appearances IL quite beyond
the power OF the outside observer. The ef-
fectiveuess of these assumptions in shap-
ing stock operations, however is demon
strated by the weeks price movements
Money Conditions Easier.
Money conditions have been easier and
the low rates for call loans have proved
an attraction for stock market operations
The relaxation in money conditions is nor
NAL 20 the period preceding the accumula-
tion In preparation for moving the crops
and has been fostered also by the meas
ures adopted by the Treasury Department
to protect the money market from bad eff
fects from the Panama canal bond fiota-
ton The dissolution of the Russian douma
and the resulting uusettiement on foreign
markets put an abrupt end to the chance
OF securing gold In London for New York
early in the week
This disappointment seemed to be &C
Cepted with equanimity by the New York
market as was the death of Russell Sage
and the market was strong on Monday
Later events proved that provision had
been made to prevent money or stock mar
ket disturbance following the death OF the
capitalist. and the fears OF an immediate
cOnhagra ton in Russia were also soothed
by the later turn OF events and by the ef-
fective recovery in foreign markets of Rus
sian securities.
As an index OF the investment conditions
Importance was attached TO the outcome
of the sale OF 81. 900 GOO OF New York cit,
herds The small number of bids for these
for part OF which no bids were received
and the low prices at which they were
placed were accepted as evidence of the
extremely lethargic investment demand a,
this time. although some considerations es
recially affecting the city's credit were not
lost sight Of The average price. which
was less than 101. compared with above
los for the preceding issue of pei
cents In February, made too striking 4