New-York tribune., 1906-07-23
THE FINANCIAL MARKETS.
IMPROVEHENT IN SECURITIES Marks CLOSE O
WEEK.
Bank Materially ImovedLtIe Expectation of Monetary
Disturbance IN the Fail.
THE WEEK IN WALL STREET.

week ago, there is no widespread Dellef thdt tue
stock market IS about to run into a bull boom.
Conservative interests opposed 10 great ac-
tivity on the rising side of the account at pres
ent. while the so-called public exhibits no in
clination TO take an active part in speculation.
doubtless owing to the fact that its funds are
employed profftably in the channels of trade.
improvement in quotations which was recorded
in the second half of the week represented
covering of shorts and quick turns by traders for
profits rather than the development Of aggres-
sive operations for higher prices, but the ten
dency the part of the professional element 10
reduce it's short lines was taken among bearish
traders as an indication of less confidence in their
position, which for many weeks has been prac-
tically inlpregnable The market has been
through long decline and there are some IN
terests who believe that further liquidation Will
be accomplished before there is anything ap-
preaching a sustained bull speculation, this ioea
undoubtedly being based on the theory that con-
ditions in the money market and the RUSSIAN
situation to say nothing of the approach OF the
fall elections for Congress. will be eHecIlVe III
preventing more than passing demonstrations OF
strength The Russian position, it must be ad-
mitted, is bad but so far there has been no
indication in the foreign money markets that
developments tending to unsettle the financial
situation in Europe expected. The money
market abroad would he the first to reflect rev.
olution in the Russian Empire The decline IN
Russian bonds has served TO check activity IN
the London and Paris markets, but there mas
been no suggestion of uneasiness among the
inanciers at those centres.
Although there is much uncertainty over the
course OF money in the balance of the year, 1t is
well TO note that conditions are much better
Fayr
place Of fear of disturbance in the loan market
there is now feeling of confidence in the the
ory that there will be stiff rates but no trouble
Still, conservative interests believe that the
money market is not yet and will not be for
some time, in a position to support a bull cam
paign in securities. Hesitancy in stocks, owing
to the uncertainty the Congress elections, Is
not unnatural, but in the political outlook there
is nothing that warrants the sale by investors
of their securities, nor Is there anything in the
political situation that ought to encourage an
active bear campaign. According to the ideas Of
many people who are not inclined TO look on
the dark side Of things, the decline that already
has taken place in stocks has measured in great
part the few unfavorable features in the general
position OF affairs at home and abroad. and they
do not admit as suggested in some quarters.
that the reduction in the prices of securities fore
shadows change in the character of business
/
often discounts future happenings. but in the
last year the movements on the Exchange have
not been a faithful barometer Of trade cOndi-
tions-indeed, they have been very much at
fault OF course, there will come time when
there will be a setback in the nations indus
tries, but If Wall Street is discounting this de-
velopment it is starting in long time ahead,
as in current conditions there is nothing that
warrants the idea that there will be let-up in
cialy as the position of the crops is SO promis-
ing The yield of winter wheat probably Will be
record breaker a big harvest is indicated in
the spring wheat fields, and, far, corn, our
most important crop save cotton, is doing eX-
ceedingly well. The excellent crop outlook nat
urally ought to encourage the idea that the
country will enjoy another year Of prosperity,
while present conditions in all lines of trade war
rant the belief that even in the event Of the har-
vests turning our poorer than now indicated
there would be no serious depression in the coun-
try's business.
An important factor in the money market has
been the absence of bull speculation, the liqui-
datiOn and duller conditions of recent weeks
having been an element Of strength in the money
position just at a time when such a prop has
been needed. Evidently the banking interests
are anxious to restrain speculative dealings till
after the demands for money from the crop sec
no disturbance need be looked for in the call
department of the market. Probably there has
never been a season when there has been more
need for active preparations for the autumn
needs in the money market than there has been
this year, and probably there never before has
been a time when the New York bankers have
made better preparations than they kave in the
last few weeks. considering the low position OF
reserves and other obstacles with which they
have had to contend. The United States Treas.
ury is in excellent condition to afford assistance
if it should be needed. but with speculative lqui-
dation In the stock market and large gold im-
ports assured 1t is not likely that the New York
banks will require much Treasury help. Money
is in good demand throughout the country for
the channels of trade. and interior bank balances
at this centre smaller consequence than
generally reported at this time of the year. the
result of which will be reflected in the with
drawal of funds for out-Of-t town account other
than interior balances in order to meet the re-
quirements ef the crop raising section OF the
country Foreign exchange conditions induce
II expectation of additional engagements Of
gold In London for shipment to New York this
week.
Iron trade conditions are not reflected in the
price Of the steel shares on the Stock Exchange
From the movement of the securities Of the
United States Steel Corporation might be-
lieve that there something radically wrong
with the industry, but a careful examination of
the character of the business being handled
the large amount of untitled orders and the in
sistent demand, which in many cases has pre-
vented the usual midsummer closing for re-
pairs. dissipates the idea that there is any
weakness in this line of the country's business
Copper trade conditions also are sound and every