The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-24

Mixed News and Diverse Views
Bond Market in Poor j.
- Shape.
Special to The Journal.

Special to The journal.
New York, June 23.-The successful
fotation Of the $50,000,000 Pennsyl-
vania loan in Paris, as officially. an
able immediate market influence. Rep
resentatives Of the uptown party are
quite generally Of the opinion that this
viii be followed by considerable rally
in the stock market, tho the opinion Is
still held by shrewd operators that the
rise in prices, which may occur, will
not BE sustained for any great length
Of time. The financial community has
been reasonably certain for some weeks
that the Pennsylvania negotiations
would be- brought to satisfactory ter
1nination and the formal announcement
of the same is consequently expected
to stimulate q good deal Of short COW
ering. An enormous short interest has
undoubtedly accumulated in Pennsyl-
,vania railroad stock. and the covering
movement may be reflected in sub
stantial rise in this stock. '~... A..
+ There are other conditions, however,
which experienced operators believe
will continue to exercise an adverse in
huence on speculation. The facility with
which prices declined following their
previous advance was not at all liked
and was regarded as an indication that
liquidation was not yet entirely over.
Furthermore, the buying is not regarded
as Of very impressive sort and gives
no Indication Of any decided disposition
on the part Of the larger financial in
terests or the outside element to extend
support. The nearest to anything of
this kind were some purchases on a
sealedown, but nobody seemed particu-
1arly anxious to buy stocks. -.
The more far-sighted operators, how
ever, are beginning to take a more op::
al VII rHi f11tO n
the market. The absorption of stocks
on the way down will sooner or later
result In a reduction of the floating
supply to such an extent as to make 1t
possible TO bring about a substantial
rise whenever conditions are ripe. The
recent rains in Kansas, Nebraska and
other sections Of the crop belt, it is ad-
condition Of the growing cereal, fact
which must have it's influence on prices
when other specifically adverse con-
siderations have been removed.
81 The money outlook Is regarded by
leading banking interests as fairly sat
isfactory and the absorption. Of $780,.
100000 Pennsylvania bonds by Paris,
of course, greatly improves the foreign
credit Of the United! States and not
but places us In such position as to
make it possible to import gold from
Europe should the local money rates
harden to any considerable extent
There will be a squeeze Of money early
In July, as a matter Of course, in con
nection with the distribution Of $3.50,
100000 in dividends. Sentiment among
the professionals is overwhelmingly
bearish and they, say. that anyone who
expects an advance! in stocks must be
lunatic. :!
The bond market, 1t Is asserted, /,
in such miserable condition that sew
eral Of the leading. houses have beer
forced to reduce quotations in an effor
to- attract the attention Of investors
From all accounts this has resulted Il
no marked increase in business as yet
what demand there is running chief,
to issues which have speculative fea
ture. Until there Is distinct improve
ment, in monetary conditions, it Is al
gued, the investment demand for bond
is likely to remain in it's presen
quiescent state, which, Of course, is no
A reawakening Of interest in the bon'
market would undoubtedly be refecte
In more activity of the right sort il
stocks. !" ~.. ..r 81
It was not surprising that rumors o
the early closing of the core Ian
deaP' between the Great Northern an
the United States Steel corporatio
These were about DUE, as nothing ha
been heard in, this connection for som
time. The rurhor was qualified by tn
statement that an announcement Nigh
be looked for after the adjournment
& of congress, and. that . no official In
formation was obtainable regarding tn
matter" In what relation the adjourn
ment Of congress stood to the al
nouncement was not explained.
Notwithstanding the circulation Q
the above Great Northern preferred
which is expected to benefit greatl
thereby in the shape, of ,"melons -
stockholders, very promptly sold off,
block of l,4OO shares changing hand
at 1861, a decline Of 519 points. I'll
hurried marketing Of so large a bloc
of stock in such high-priced, closely
held issue, could not be construed a
FOR the short account.
DTDED George F. Piper