The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-07-08
FINANCIAL AND COMMERCIAL.
SATURDAY, July Z

-f-.F o. n. wv
SATURDAY July.
The Improvement Ia sentiment regarding
the stock market which was 90 noticeable
ct the close Of business yesterday afternoon
showed no lessening this morning and re-
suited In the fret half Of the Stock Exchange
session In a further general advances In
prioes. There we're no particular features
IN tho market. the rise affecting nearly all
che aoi.,ve stocks alike. The Northern
Pacific and Great Northern preferred stocks
were perhaps the leaders In the trading,
and for this the continued circulation OF ru-
n,ors that the contamination was imminent
OF various long meditated transactions con-
corning what Wall Street calls the Hill
properties vas responsible. A large seotion
Of Wall Street believes that now that Con-
gress has adjourned negotiations VIII be
rapidly pushed to a close for the lease OF
the Great Northern company's ore lands
by the United States Steel Corporation n
there has been q revival OF the old stories
concerning a possible sale by the Northern
Pacific company OF it's interest in the Bur-
hngton road to the Great Northern CON-
pany. The rise IN the market was, however,
checked by the publication OF an unex-
. ,tedly unfavorable bank return. Al
though the bank statement sho wed a de-
crease In loans Of se,3ee, 600, it exhibited a
cash loss by the banks during the week OF
nearly 50 ,OOo, OOos this serving to pull down
the bank surplusby IS, 5s5 900. The decrease
in loans was looked for on account OF the
weeks stock market liquidation, but the
heavy loss in cash recorded took Wall Street
by surprise inasInuoh as yesterdays fore
cast Of the movement OF money in and OF
OF the banks since last Saturday had pointed
to O gain by the banks OF nearly 81, 200, 900.
The loss as sho wn was commonly attributed
10 the enforced segregation by the local
trust companies since the last Clearing House
return was compiled of a sum Of money
equivalent to / per cent. Of their deposits
in compliance with the new law requiring
the trust companies to have on hand in cash
on July ] 8 per cent. of their total deposits,
The actual quantity Of money thus covered
into the trust company vaults on July 1
cannot be ascertained inasmuch as many
companies were possessed long before the
date named Of cash reserves above legal
requirements; but that a considerable
withdrawal Of money from the banks has
recently occurred owing to this cause Ia
u%ndoubted. The declins in the market
after the bank statement was published
took place sharply and was sufficient to
wipe out in many cases all the earlier gains
Of the morning. From this in turn another
rally occurred, leaving prices OF stocks as q
rule still higher than final quotations Of the
day before. Net declines, however, were
made in numerous instances,
The force chiefly at work upon the market
during the week has manifestly been the
ebb and flow Of large and strictly profess
sional speculation. 1t was felt very strongly
q week ago by the majority OF competent
observers that the fall in prices during the
three or four weeks Immediately preceding
had been pushed much more strenuously
than any known facts warranted; yet at
the opening Of the present week pressure
upon prices was again resumed aud it was
not until the sessions Of the Stock Exchange
following the Fourth of July holiday that
q distinctly better tone in the market wa
exhibited, The. actual news OF the week
has all been of a character logically oaicu-
lated to help rather than to hurt prices.
The price of wheat has sunk almost day by
day to a lower level by reason Of larger
estimates of the current harvest for winter
wheat and upon the prevalence over the
entire West of exceedingly favorable Weather
for all farming operations. The outlook
for the corn crop has become much better
than formerly. Sterling exchange In the
fore part of the week, under the influence of
slightly higher money rates. sank to a point
That seemed to make large gold imports
inevitable, and although when money rates
A-i ztNzltn- Il, t,,rp Dltvon4aI tha-a 10 No
doubt that our BANKERS we're and still are
in a position to bring gold in quantities to
this side il they really wish to do so. $ One
reason for this is, as may not be generally
understood, that very little money has yet
been sent here by the foreign insurance
companies to meet the claims upon them
on account os losses in San Francisco and
that thus our stock of credits in Europe has
been REINFORCED aside from the help given
by the Pennsylvania Paris borrowing.
The summaries of general business during
the first calendar year, as published in the
last few days, brokeall records of prosperity,
and although the present is a between
seasons period in the business year the bank
exchanges and the railroad earnings show
that the most active kind Of summer dulness
ever known in the history Of the country
10 being witnessed. One result Of this is,
it must be admitted. not altogether to Wall
Streets liking, for it has produced such a
demand for money for general purposes
throughout the country as to bar the finan-
cial community interested in the stock
market from that relief that usually comes
from a period of liquidation in securities.
Although prices Of stocks are now much
lower than they were a month ago, the
loans OF the, Clearing House banks at this
centre have not been diminished.