The San Francisco call., 1906-05-20
New York Stock Market.

fNSW ASiN OlOCk Markell
NEW YORK, May 19.-There was no
market for stocks worthy of the name
today and the sluggish drift of prices was
OF no consequence. The stagnation of
growing conviction Of the unpropitious
outlook for any large speculative attempts
IN the present stock market.
EIlces showed A dropping tendency from
t2e inaniuon of the market but hardened
70 some extent before the closing and left
Inal prices lnsgnifcantly changed from
last night. The most important change In
the bank statement was in the last loan
item. The 5000, 600 loan expansion is
clearly due 10 other cause than stock mar
ket borrowing, and. the PENNSYLVANIA note
issue IS given credit for the increase. Al
though over SIG, ,000. 600 OF gold has been
received by incoming steamers this week,
Uhe United States Treasury had claims
upon the banks for an equivalent amount
on account Of Government funds advanced
70 the banks at the time they engaged
me gold under pledge of return of Gov
eminent deposits when the gold arrived
The cash, item of the banks, therefore,
shows only a nominal change on the week.
The passage by the Senate of the railway
rate bill was without apparent inuence
on the market. An explanation offered
Tor the torpid state of the bond market
and the dropping tendency of prices there
power on the part OF the life insurance
companies. which played an important
Fart early in the bond market 1t Is sup
posed that some liquidation on the part
OF the insurance companies on account OF
the San Francisco losses is an influence
IN the bond market also These conditions
- believed 70 help to account for the
Y sort by the Pennsylvania company to its
note issue IN preference to bond issue
the actual money conditions In eitts their i1sno 70
ence on the bond market
Total sales OF bonds (par valued So
Operations in stocks this week have
lapsed into professional hands TO a large
extent The volume Of transactions has
shrunk and the range fluctuations have
narrowed. rejecting a decline in specu-
lauve interest and a mood of hesitation
and uncertainty over the outlook for
values. This is in accordance with pre-
cedeRt after such a market as that fol-
lowing the San Francisco earthquake and
rre and represents a stage in the nor
the problems presented by the losses in
CURED in that calamity. The natural
forces toward the first rebound from the
acute depression following the disaster
haveibeen working themselves out and the
market is left to the influence Of new de-
yelopments. The recovery In prices has
investment standpoint and that class of
demand which was a substantial factor in
checking the fall has diminished at the
terest has been largely reduced, az the
recovery IN prices has forced the bear in
terest TO cover and the market lacks that
potential support The action of the mar
lzet has indicated the persistence Of at
tempts to extend the advance on the part
OF the professional parties and negotia-
tons and 10 inaugurate new campaigns
on the Ion gside Of the market But
there is little evidence of any large follow
ing attra cted for these movements and
in the stocks thus operated in are the
reflection Of the varying positions taken
by the professional element. The copper
group and the anthracite carriers have
. been the favorites in the efforts to reyive
D Speculative interest. The general list in
tle meantime has moved sluggishly and
some stocks have shown positive depres-
While the stock market has been affect
ed mostly by technical conditions, the out
the developments of the week have been
important The future course OF the
money market especially has come in for
renewed consideration. The sale of the
Pennsylvania company OF $50 000. 600 of
eighteen months notes on basis of in
terest cost to the company estimated at
something over per cent formed the text
for much discussion. Temporary borrow
ing az that rate of interest by so strong
q corporation Is taken to show inability
tiOns TO find a market for the more per-
lnanent capital issues which IL is assumed
VIII follow IN due time TO redeem the
temporary loan. AS very large capital is
sizes remain to be absorbed in the security
market TO provide means for the extensive
enlargements and extensions in contem-
impression is created of the chance OF
success for these offerings. Terms OF sale
which should attract a demand would be
likely to cause pressure TO sell existing
securities TO provide means for taking
up the new, or the money market is likely
70 be incumbered with other temporary
sylvania notes to tide over corporation
needs and defer the offerings Of more per-
manent capital issues The situation is
complicated by a volume OF bonds re-
Gently issued which remain in first hands
OF syndicates and bankers with large
loans from the banks and trust companies
g. 49, <@Aw -
a a. rate ii Of interest by the Pennsyivania
company for eighteen months seems 70
belie the seeming ease Of the present
below {. per cent for time loans up to SIX
months and below per cent for call loans.
The resumption IN force of the currency
part OF the week adds influence to the
money question. Calculations that prepa-
rstions had been completed for the re-
sumption oT. Of banhns In IN San n,stsFsD pEsn
5y 5 y GOD Imports Is again canvasssd
70 this something depends on the extent
to which foreign insurance companies
have already ren7itted funds TO this coun-e
5y ter payment 81 san ~ PTsnc'ScG 1,e o,t tosseS s
the view that recent gold imports repre-
scented the completion OF large prepara-
ton OF such remittances to the contrary
extreme which holds that the bulk OF
these transfers remains 20 be made
Skilled financial authorities abroad also
were widely at variance as to this coun-
trys present situation In the international
exchanges.
The Uncertainties Of the money sftua-
ton during the coming season thus In
oicateo are held to account mainly for
the halt IN the speculation advices OF bus
mess and Industrial conditions continue
favorable. Railroad earnings show a eus-
tsined improvement over previous years.
Purchase Of steel rails for the next year
are on q scale which affords convincing
index Of the soundness of the iron and
steel situation. Weather conditions are
hpot wholly satisfactory for the winter
Wheat crop, but the resulting firmness Of
the stock market up TO this time The
anthracite labor settlement has helped to
make the anthracite group of stocks
strong.
The market for bonds has not revived
and is unsatisfactory. to bond dealers with