The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-03
STOCK MARKET IN
4 Waiting: MOOD.
Adjournment Of Congress and the
Crops Are the Two
Uncertainties.
Special to The Journal,

New York, June. 2.-The stock
market, according to some observers,
Is now pretty we'll sold out and only an
aggressive movement in certain stocks
is necessary in order to stimulate gen
eral covering of shorts. Operations OF
this nature, it is said, have been chiefly
responsible for the recent upward trend
in the general market. According to
information received from some quar-
ters, there is a well-organized party
working for higher prices in the hard
coal stocks. A good deal of buying Of
these issues is admittedly on the theory
that the anthracite roads will divest
themselves of their coal properties,
turning them over to separate corpora
tiOns, the stock Of which will be dis
tributed to the shareholders in the. an
thracite roads.
According to the belief Of some other
Wall street observers, there will be no
sustained movement on either side of
the account until it can be ascertained
definitely how the years harvests are
to turn out; And it will be impossible
to know this, until August. In the
meantime, bankers will endeavor to ac-
cumulate large supplies of money in ex-
pectation of big crops and a large de-
mand for accommodation in the fall,
incident to the financing of the needs
of the agricultural community. The
reopening of the San Francisco banks
without the accompaniment OF disturb
once was one of the most encouraging
Developments in money, and it is now
believed that the emergency fund of
upward of SAC. 100000, which has been
received at San Francisco from the east
In the last few weeks, soon will be re-
turned to New York, in part at least,
and serve to increase local bank re-
serves to a material extent.
An important element in the market
looks
TO the July Disbursements, basing hopes
upon the elimination of unfavorable
factors, particularly legislation at
Washington. On the other hand, the
conservative element in Wall street
while granting that the adjournment of
lie agitation, point to. the very IN
savorv disclosures resulting from the
Interstate Commerce commission invest
igation of the Pennsylvania railroad
and the Standard Oil company, which
do not tend to increase the faith of the
with the prevailing high level of prices
which has discounted the future in nc
small degree, it is argued that a manip
ulated rise would only intensity the re
action which cron scares, money string
ency and election excitement might
bring about later For the time being
the crop situation, upon which a contin
II
is not ii1ifavorable, heavy rains in thu
west having done much to alleviate
drought.
AS some of the influential Wall stree
men are loaded up with stocks and arr
involved in underwriting syndicates t.
large amounts, it is reasonable to SUD
pose that they will do everything il
their power to encourage higher price
for securities in order to make a. goot
market for the distribution of the neV
- stocks and bonds which have, beer
authorized in the last six months, bu
which in great part are still in tn
hands of underwriting syndicates
The stock market was materially dis
turbed by rumors that the Unite
States Steel corporation. the St. Pau
and the New York Central were anS
iously awaiting a favorable opportunit
to borrow millions for improvement
- plans. With the glut in the bon
despite some buying of the bargain
counter variety, corporations mus
needs resort to temporary loans ouch a
the Pennsylvania recently negotiated
Investors are unwilling to buy securitie
on a O. AZ percent basis. when tn
market is flooded with railroad loan
yielding larger returns.
- The absence of buyers in the stoc
market is attributed in no small degre
to the widespread real estate speculs
ton which has absorbed large proper
ton of surplus funds, even the saving
banks now FEELING the drain. U1
doubtcdly, were this initiation to rt
ceive quietus. more attention woul
be devoted to the securities marke
Fortunately the nndigested securitie
are of a high grade, and with easie
money rates, such as would result frol
cessation of speculation or more norm;
business conditions, the situation woul
Doubtless soon remedy itself.
The great part of the gold engage