The Montgomery advertiser., 1906-07-01
THE STOCK MARKET.
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Prices were Fsreea sam Lower Adding to Number Of 8tocHs to Make
 Low Hocofde for Year.

sf
 Price. wsss rsress es!n Lover .: Ass'.x .;
 Low Rseefds Tor Year.
 New York. June so.--The llquidAti ton
 in securities was continued today with
 the result of forcfnG prices still low CT and adding to the number of stacks | to make low records for the year. The
 liquidation was somewhat spotty and
 fs% tosR f ass so os S | the extent of the liduidation already affected there is no borrowing Of mon : ! ey on the stock exchange 5on satur-
 that Influence. but the appearances or | the bank statement was the signal for
 fresh selling and fall in
 Only part of the expected gain in cash was reflected in the statement and a l loan contraction of less than q million
 the severe wnfea for credits, which keeps pace with every
 addition to banking resources and with every. reduction of accommodation to | shorts showed an alert tendency to cover at all available declines and this | kept the tone of the market unsettled
 declines The inclination of the bears to cover was stimulated bv the prospect
 that Monday would find congress ad- tourned Some account was taken aiso of the prospect of securing gold Tn London for import to New York next week. While the prevailing level or exchange is as low as that during me last gold import movement 1t Is pointed out that the banks admittedly counted the previous gold engagenents In their reserves as soon as secured abroad ury allowed advances of government deposits when gold was engaged. At the present time the banks are enjoin-
 ed from adopting this measure sa ,nnn The tion from the controller to restrict loans to individuals to an amount from
 within ten per. cent of their capital
 event 30 per cent Of the capital. This
 which extends the limit of permissible
 per ,S cent f' of canitai. But the old re- striction has been In effect, dead let ter for a long time and It Is believed
 that the intended enforcement of the individuals. The market closed slight iy irregular at notable net losses on
 Totai sales of bonds. par value. s7s5,- There has been heavy liauidation In
 have been carried downward notably. In few eases the level touched was lower than that on the decline after
 the San Francisco disaster. put tne approach the point reached at that 1 time. The motive of the liquidation Is open to some dispute and is obscure in vious and was of decisive effect in shaping the sentiment of Repression | approaching dcspondency which had pendent for profits on the maintenance | of values. Professional bear opera tors have followed the market freely
 and their reGuirements to cover snort l parent support and basis for occasional 1 rallies in prices. Such rallies have in-
 variably availed of for fresh .liquida- rences of favorable import to values ! and such as might be calculated to in- | spire demand for stocks. Divided in- ditions and estimates of favorable out come of the crop with large yields have | been met alike with pressure of stocks
 for sale The conseouenee has been Wall Street. which tiwells upon the | term apex of prosperity" and sees evidence of over extension and coming
 reaction Tn the general situation of af- Evidence of over extension Is not l lacking in the conditions in the money
 market. These conditions are the key
 to the immediate situation in the stock | market. where vulnerable speculative
 commitments are open to the first | pressure towards retrencnmGnL ana l building up of banking reserves. Many | stock market pools of long standing
 have found themselves obliged to re- duce their lines and have found diffi- | high level of prices to which their op- l erations had advanced their special | ties. These nigh prices have the effect l of throwing the. rate of income return i on the stocks affected out of the rela- | tion with prevailing interest rates for
 money and of putting them into dis
 CTS. who must be relied upon to form | any substantial basis for the mainte-
 nance of values. Many high class
 railroad stocks have been selling at return to a four per cent basis or low CT, and where even dividends increases which are counted upon would
 fail to raise the income return to the time loans. These rates have advanced | during the week to H 2-i n r cent T"f
 periods of seven months and upwards,
 carrying over the end of the year and | speculative borrowers are reported to
 have bid considerably higher rates without securing accommodation. Of
 rates bid and the demand has been the | largest for the longer periods. Lend CTS have been disposed nevertheless to
 keep their funds available by placing
 them in call loans. This explains the | comparative ease of call money and
 the slight effect caused bys the prepara- | IlOnS the unuSudllV HedYy require
 ments of the July settlements. These l have not been entirely without effect
 on call loans towards the end of the week and 1t has been felt that call 1 loan rates would work higher next week. The obligation of New York l Trust Companies to increase their cash | reserves on July 1. are complicating
 factors. The request of San Francisco l financial interest for deposit of gov | ernment funds with their banks is
 taken as an indication that the. return | flow of the cash accumulated there after the fire is not likely to reach | the full amount of the resources then l collected. The treasury department | has decided to withdraw $10, poo, 900 l banks according to notice on July 10, | to secure means for thA intended de- posits at San Francisco. A recurrent | factor in the money market Is the dis | solution of Syndicates by expiration
 which have underwritten capital is- | sues and the necessity of taking up | large unmarketed residues .of these
 on new stock issues come due at in- | tervals in the coming week and re- l sources will have to be -ound for | meeting them. Further capital issues | are also looked foe to provide means for the large enterprises of ecrpora- tions already undertaken. With se-
 curities still selling at prices where
 the rate of return is lower than that
 for money natural disposition to con-
 vert holdings into money is in opera | ton. The influence Is observable in the absence of the reinvestmest demand | for bonds. which usually makes it's ap- pearance in the period preceding large | The stock markett is sensitive sto re- | DOrts of cron daniaee Owing fo the