The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-28

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ssv mat me nafkef has lsen suhietiei 'r
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ha7s rf,ie t~ssnus'sof ~ e1uras unusUall
sHTiruH m tho middle n tfdi prices
shpwsi pstn asns ~ emerging fr,m
the le,haf ~ N vtiirh fhey mad lons restel
sad rfe'tg heavy ~ mn'imsn's fof Tho flse
IN rtocks ssrr senerslly made Tho dis
a-ser m he PaciAo Coast worked hsvoc
wtth fhesa and wipri aeev. WITH MANY
ts,pie. q god portion ~ the pr 49, hived
On fast operations. Just w. me market
started on tho much recovering movement
that almost invariably takes place sue
ceehing = sharp break In price, y met the
shock q the Government attack upon the
Standard oil Company. and quotations f"r
stocks we're again duickly der re-sed. upon
the theory that N was this matter and not
the San Francisco earthquake that had
really hren the catiss ~ the market trouble
Again the market turned viol"nt'v and rose
in %sven days almost half ~ far a. ~ had
fallen since II touched ~ eNir"ma hiEh level
last January. Again. Just when Il looked
4tronRe=i the market declined. o=tcnSlhly
becaiae Of the crop damage stories from the
West and tho results Of the Interstate Com
merce Commission investigation into the
management Of the Pennsylvania Railroad
Company. Once more It rallied y a trice,
lust a. declining movement was Under way
vigorously on the starting upof heavy buy
ing for come mysterious reason in the hard
coal stocks and upon the idea, that seemed
not i'll founded, that the sale Of 5000, 600
Pennsylvania bonds suggested the entrance
Into the market Of a new and vast pur-
chasing power. II ia very much pen
to question, however, whether the recent
confusion Of the market has been due
more to external causes, that IL
to say, to this rapid succession Of favor
able and unfavoAble developments, than
to momentsry uncertainty in the minds
Of spectators. bankers and capitalist
generally as to what the remainder
Of the year has in store from a financial
point Of view. Undoubtedly the under
lying opinion of the best people is that
considering the heavy decline in prices
that has occurred since the first Of the year
the brilliant business prospects everywhere,
the favorable outlook for the crops as thus
far made known, the current ease in money
and the friendly disposition toward us OF
European money lenders and investors.
a higher range Of prices for securities is
logically justified, but it is urged on the
other hand that the money outlook, taking
n long view OF il, il not unclouded, that the
output Of the years crops is still some
for tine future to decide, that business
prospects would probably change for the
il the crops met with disaster and
despite the decline in prices there is no
strong desire on the part Of the general
public to buy stocks. So far as the money
question is concerned there are those in
banking circles who affirm that the present
ease in money is ilfusory. They declare
hat with call money rates as low as they
are stock commission houses and other
borrowers Of money for speculative pur-
poses are not anxious to make time loans
to any extent and that time loan4for the
shorter maturities are now HMnifestly
undesirable, inasmuch az they fall due
in the autumn when money rates presum-
ably will be high. 1t is said, too, that while
money rates for "over the end Of the
are now only quoted at s per cent,
N reality n much higher rate than this |
demanded for anything like large sums
Of money, and the onerous terms on which
corporations are now obliged to
sell their short term notes indicates that
there is some truth in this. As against
this, however, is the growing ease in Euro
pean financial conditions, which seems TO
be opening foreign credits in our behalf
a most encouraging way. The Bank
England recently advanced its discount
rate from sI5 to 4 per cent. because our
drain Of gold from London was becoming
1nCOmiOTtdDy pieoSihB' ohu yVS ho''hbb
been more noticeable than the fact
hat since the movement Of money to this
side ceased the Bank of England has been
with the greatest facility imagi-
nable to reinforce its gold reserve from the
supplies Of now gold continually laid own
London. Growing ease in money is
he feature Of European business every
where. The Bank Of Germany last week
it's discount rate and a reduction
IN the English bank rate to the old level
,annot apparently be long delayed.
No view regarding our W fnancial
,~ituation Ia at all adequate that does not
AXE account Of the stimulus all financial
are enjoying from the production
II gold in the world that goes on at a steadily |
Increasing pace. The time is near at hand
when between $50, 900, 600 and $50, coo, eco
will be laid down on our Pacific Coast in
he spring shipment Of new gold from
Alaska, while the new gold fields of Nevada
many other portions Of the country
ire continually enlarging our store Of the
metal. Summing up the situation
- for No the stock market ia concerned