The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-28
FINANCIAL AND COMMERCIAL.
WEDNESDAY. June II.

large holders OF speculative Btocks, ana n
support was entirely Withdrawn prices de
clined sharply, and for . time there wa
something closely resembling demoraliza
ton. The selling movement continued L
The close, but In the last hour the demand
showed some Improvement, although prob
ably a good part Of 1t came from tie shorts
A higher range of prices came from 1ondo
and that there was n better feeling in regart
to the Russian situation was reflected In
further advance In the 4 per cent. bonds
Of that Government. 1t looked, however
as II the higher level Of quotations on Amer
lean stocks abroad which contributed tc
the opening advance here was the result Of
manipulation designed to facilitate the ef'
forts OF speculative interests to liquidate
a part Of their holdings. Renewal Of liquida.
ton was impelled by the hardening In the
rates for time money which advanced INIT
the best terms that could be made for a loan
to carry over the end Of the year was 81;
Ter cent. on all railroad collateral. On
mixed collateral The rate was still higher
and 1t was reported that as high as 7 rer
cent. was paid oil a seven months loan OF
500, 900. Even at the higher rates the sup
ply Of time funds was far from abundant.
50 that some speculative interests were left
but little ecou from selling stock, and
this they were forced to do even when there
was no evidence of anything that could be
called good buying in the market, The early
manipulation for an advance was so clumsy
that it deceived nobody. One we'll known
%speculator who bought a good deal OF
Amalgamated Copper around the opening
level, finding that he got stock rather easily,
49, - a. - L--a. s.Al.-- LII,
for 10000 share lots, feeling pretty sure
that there was little danger that 80 much
would be supplied in a single block. The
purpose Of a bid for 10000 shares Of Ana
conda was even more ralpable than in the
case OF Amalgamated, and that 1t did not
deceive the traders was sho m by the
rapidity Of the decline which set in almost
from hat moment. On the break after
midday there was hardly an issue that could
be singled out as offering any reasonable
amount Of resistance TO the decline, the
complete absence Of any effort at support
being one Of the most notable character
istics OF The days business. The traders
argued from this that the large interests
were disposed to favor the decline, but in
banking circles 1t was commended that no
reason exis, ed for supporting the market
and that it was better for all concerned
hat prices should seek their natural level,
where they would attract buying OF stock
by investors. The report that the market
was allowed to decline az a protest against
the policy Of the Administration at Wash
ington me. with general denial in good
quarters, where it was said that this policy
was well understood and that recent events
had not come as n surprise in view of The
matters which had preceded them.
The bears seized upon the announce
ment that a number of the anthracite
mines would close next week and used it
in furtherance of their designs, although
it is not at all unusual for the miners to take
a few days holiday around the Fourth Of
July, as indeed they do at other times.
The regular summer dulness in the trade
removes whatever little significance might
otherwise be attached to the temporary
shutdown at this time. Lehigh Valleys
statement for May showed gross 81 AIS, 2s5,
a decrease of 1858 ,396 and net ss4e $40, a
decrease Of $3.50 GAS as compared with the
corresponding month last year, the falling
Of being attributable to the anthracite
strike, which tied up mining operations in
the earlier part Of the month. Only rou-
tine business, it was announced, was trans
acted at the meeting Of the Chicago, Mil
waukee and st. Paul directors, and some
disappointment was felt in speculative
quarters because there was no apparent
progress toward the granting Of the long
expected rights on the stock. 1t is quite
possible that instead Of issuing stocks and
bonds the road will arrange the io.ation
of a loan in Paris, and it is said that for
some time negotiations toward this end
have been conducted with the Credit Lyon
rais but that the matter has not yet been
finally arranged. In case st. Paul should
succeed in negotiating a $40 900, 900 or
$50 900, 900 loan in Paris on favorable terms
the probability is that a gold import move
ment would follow, and this might result
in stimulating activity in the stock market,
other conditions being favorable. An in
crease Of $521 ,so7 in the amount of surplus
applicable to dividends showed that the
United States Cast Iron Pipe and Foundry
Company participated during the year in
the general prosperity Of the iron and steel
trade, and that the business in iron and steel
still keeps up was made clear by the fact
that in the first twenty-five days Of The
current month the United States Steel
Corporation booked twice as much bust
ness as in the corresponding period last
year. General expectation was fulfilled
by the increase from ~ to ? per cent. in
the annual dividend rate OF Ontario and
Western. SO much irritation has been
caused by the State law imposing a tax
on sales that brokers ave about made
up their minds to lie reconciled to any sort
of imposition, but the r1f1ing that Pennsyl-
vania $50 shares must have aft xed 50 worth
OF stamps on every 100 shares, like the
500 shares Of other roads, is particularly
Obviously on the same reason
ing a W cent stamp must'be affixed to the
81 share of a mining stock, the tax being
per share without taking account of par
value. so that the measure certainly
does not impose equal taxation. Of
course the decline has resulted in an i'm
pairment of margins, and commission
houses are very likfly to send out calls
for more money TO their customers tonight,
and in case of failure to respond there may |
be seling of weakly margined accounts
in the first hour Of business tomorrow.
Naturally the commission houses which
can only obtain time money by paying
rates have not been disposed recently
to do much on the lC!.; side Of the market,
should money become easier after the