Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-15
Dull and Narrow Conditions for
Weekend Market.
TRADERS USED CAUTION
Bank Statement Showed Restoration
of Surplus.
PRESSURE TO SELL STOCK
Marked Activity Among the Indus
-
PRESSURE TO SELL STOCK
Marked Activity Among the Indus
triaIs-stocks Unresponsive to
Easier Money-Bond Issues.


cure was met on the small advances But
there was no follow up to the movement
and the traders operated only with the Ut
most caution. amounting to timidity. When
they attempted to realize profits on carry
sales before the close they found the mar
ket as bare of real absorptive power 3
IL was OF selling pressure. A condition VI
profound neglect was disclosed The TAX
INK of profits left prices close to the Level
at which they left off last night.
The bank statement showed restoration
n. rather more than last weeks loss In
the surplus Item. The S14,3i5OO0 loan con-
traction was attributed to the weeks stock
market liquidation and the excess In the
cash gain over the preliminary estimates
was credited to correction OF the dis
crepancy In that item last week Inc
weeks repayments of government deposlIs
are shown to have amounted to 81, 4o9,soo,
exclusive of drafts by interior banks upon
New York accounts for the purpose The
report from Washington that $4,oOO,OVo 10
100000 OF government money was peine
deposited In interior banks was regarded as
promising an Offset to the effect OF the
current withdrawal of s1O,Oo.0U. which
will affect principally the New York banks.
The rise In government IS. which are thus
in demand as security for the government
deposits, Is expected TO help the marketing
OF the new Panama canal bonds.
Large arrivals of South African gold
were reported In England and there was
some discussion of the posssiDiiity OF
part of 1t being obtained for New YORK.
But bankers here made no announcement
on the subject. The market closed heavy.
Total sales OF bonds, par value, $6oI.oeo.
A Pressure to Sell.
In face OF some favorable developments.
pressure to sell stocks has reappeared In
the stock market this week. The purpose
to take advantage of favorable circum-
stances to nquidate holdings was manifest
and chilled all speculative confidence in
the capacity of the market to move a
higher level. The persistence of this SELL
ing good news constitutes the most sin
lister aspect of themarket from a specu-
latiye standpoint and fosters senti
uent of doubt and anxiety over the
whole financial and business outlook.
1t serves to neutraliZe the effect of the as
surance Of prosperous conditions, which
are almost universal from all quarters of
the business and financial world. Iron and
steel authorities protest that demand for
all grades OF product Is undiminlshed and
that untitled orders on hand are kept up in
spite OF production running to full ca
pacity. The statistics Of iron production
for June, however, showed some falling OF
from May, which in turn was lower than
In April This had some counteracting eff
feet from the trade reports OF sustained
deTa for products.
But the most effective influence on senti-
ment was the uninterrupted selling OF iron
and steel industrials in the market, includ-
ing the United States Steel stocks which
has forced them TO the lowest prices of the
year. The same conditions are operative
in the market for railroad ST ,cks in spite
or earnings, reports showing wide increases
over previous years at the same season
Thegovernment's report of conditions of the
crops published Tuesday was regarded as
practically assuring returns of all staple
crops except oats approaching or exceed
Ing previous record figures. This assurance
so vital to the country's prosperous course
fof the year. would be expected to awaken
a demand for stocks In ordinary circun,
stances.
A Signal for Selling.
II was the signal. on the contrary. for
selling by the professional traders who
had bought lightly in anticipation Of the
demand which might follow the favorable
crop report. This movement in fact.
marked the decisive turn from the recoverv
In prices which set in about the middle
OF last week. The narrowness of this re-
covery ana the quick subsistence of demand
was particularly discouraging to specula-
tive sentiment in view of the large short
interest supposedly built up in the course
or the previous decline and which might
DC toLceG 10 cover on any aggressive sup
por- In the market. The fresh declines in
prices wiped out the average OF the nre
Nlous recoveries AID IN some consnicuons
market leaders carried prices lower than
cisco calamity
The market has been equally unresnon-
slve 10 easier conditions in the money mar
ket: which have resulted from the normal
redistribution or Accommodations for the Julv
settlements. But in this field there is little
confidence IN the permanence of the case
large body OF sentiment attributes the
money situation as the true source OF the
prevailing stock market depression
The persistence with which bank loans
ara maintained, In spite OF stock market
liquidation and the desirability OF retrench-
ment in preparation for later requirements
creates a bad impression. The abstract or
reports OF condition OF national hanks
thIo1Shout the country as of June Is COM
pared with the previous reports on April
show an expansion In the loan item of
sSs.ilS.Sso. while the cash reserves have
been repienlshed to the extent of $50 T3S-
~. But vixen the comparison is made be-
tween June Is OF this year and May 20 of
las; year there Is found to be a loan ex-
pansb)n OF S30I.Tl9.750 coupled with the
insignificant cash accession of 81 atSS $50
IL IS supposed that the same conditions ex-
Isl in the accounts of trust companies and
banks not reporting to the controller
Prosperous activity in business carries
with IL expansion OF credits and makes for
increase Of wealth and of available capital
so long as the new outlay is In profitable
fields. which carry added earning power.
But the action OF the securities market
srouses fears that well-inforrned and far
sighted capitalists detect evidence OF over
extension into ventures of doubtful out
follow OF reaction and check to confidence.
There is much discussion in the financial
district OF the extent to which real estate
has been bought and enhanced In price,
both in New York and in the west.
Large Banking Credits Known.
Large banking credits are known to be
involved In this field. The new incorpora-
ticas for June OF this year showed about
half. included In mining ventures OF one
kind and another and half OF the remainder
was made up OF trolley enterprises and
electric lighting combinations.
Light is-tfigss thrown upon the destination
of some Of the capitol which is diverted
from the securities market and which has
TO account for the iethargy OF the demand
there. With prices still at level where
the Income return Is less than on market
rates for money. there Is added incentive
70 liquidate securities Large issues held
In first hands and maturing subscriptions
TO stock issues for which there Is slow
market at best add TO the congestion OF
credits.
Many rumors have been prevalent this
week OF further railroad bond issues to be
ooased in Paris. But the character OF the