The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-29
FINANCIAL AND COMMERCIAL.
THURSDAY, June a..

THURSDAY, June ~.
> Az was thought probable by the majority
Of close observers Of the stock market
after the close of business yesterday after
noon there was a renewal In the iorepart
Of the Stock Exchange session to-day OF
the pressing liquidation that has been
recently 20 notably in evidence. II was
manifest yesterday that numerous calls
by commission houses upon their customers
for the strengthening Of weak speculative
accounts would be made overnight and the
reasonable expectation was that a lair
proportion of those to whom these demands
were addressed would decide to close the
accounts in question. These an~ticipations
we're fulfilled, and in the first half hour OF
Stock Exchange business and again and
more severely an hour later prices were
sharply depressed, falling on the second
occasion to the lowest points yet touched
in the course Of the present declining move
ment. 1t developed, on the other hand,
that this enforced pressure to sell stocks
was not sufficient to bring the market to
the point Of decentralization and that 1t gave
every appearance Of representing the
maximum power, for the time being at least,
Of the forces that nave been recently exerted
in the effort to force quotations Of stocks
downward. There naturally began, there
fore, large buying Of stocks by the short
interest and this vas In continuance through.
out the entire remaining period OF the ses-
sion. These purchases Of stocks we're not
characterized by any particular urgency and
many times during the day as the market
rose to new high levels 1t became dull.
Nevertheless, transactions we're in excess
Of yesterday, an evident disposition pre-
vailed to pay more attention to the funda-
mentally favorable factors In the general
situation and it was plain that O reverse
current in the trend Of prices was IN prog
ress. Closing prices we're not far from the
very best of the day and gains running from
one to three points we're common in the
stocks that have been the most active
subjects Of speculation.
1t can hardly be said that there we're any
occurrences to-day of a nature to alter very
materially existing views as to present or
future financial conditions, and fluctuations
in the market seemed to be more than any
thing else the result Of technical conditions
and professional operations. The recovery in
prices was unquestionably assisted TO some
extent by further pronounced weakness in
HltlllllS tatlIdliBt, "ll'l' y NiC ~
Of demand sterling within near distance OF
a point at which, based upon the known
facts of the state of the foreign exchange
market gold imports could be easily under
taken. One million pounds in gold bullion is
due to arrive in London next week, and there
were rather definite rumors to-day that this
sum or the greater portion OF 1t had been
secured by our bankers. These rumors,
however. were not confirmed, and 1t Is be-
lieved that although negotiations for gold
imports may be pending they have not been
vet arranged. The matter Of most import
ance in the European market appeared to he
the heaviness of prices in Paris, based upons
fall in the French national securities, owing
to the recurrence OF a proposition by the
French Government to lay a tax on incomes.
This led to a moderate decline in values on
all the principal European bourses, in which
American stocks in the London market
shared. The Bank Of England, too, made a
rather disappointing return in it's weekly
statement OF condition, the banks proportion
of reserve to liabilities being placed at 47.t4
per cent. against 49.04 per cent. last week.
Although the bank gained nearly 81 ,0oo, 900 In
gold holdings during the week, it increased
it's loans over 50, 600, 900. A matter possess
ing more or less market influence. also, was
the publication in one of the morning
newspapers of a statement setting forth
several extreme adversities OF an engineer
ing nature which, it was declared, had beer
encountered in the construction Of the Penn
s~ylvania Railroad Company's tunnels under
the East River, although it was officially
denied in the course of the day that any
greater difficulties Of this kind had been
met with than had at any time been counted
upon. Great disgust was naturally mani
tested by the trading element by the ruling
o. the governors of the Stock Exchange,
announced this morning. that hereafter a
full tax Of two cents per share must be paid
upon the transfer Of every share Of stock
irrespective OF the par value Of the stock.
Up to the present time, as has been we'll
known, it has been the custom Of brokers
to only pay this tax upon stocks having a
par value Of 800, and the new ruling, Of
course, makes transactions in stocks like
PENNSYLVANIA, Anaconda and Reading and
more particularly the large number OF low
priced mining and other stocks dealt in on
the curb market which have a par value
Of less than 500 much more costly than
heretofore. The inevitable result Of this
ruling must be to transfer to out of town
markets much of the dealings in these secur-
tiles that now take place here. Two other
matters that obviously helped in the ad-
vance in the market to-day we're the pros
pect of an early adjournment Of Congress
and the fall in the price of wheat and corn
owing to the improvement in the crop out
look. The money market to-day. as was
logical in view OF the approaching July 1