The San Francisco call., 1906-07-10
New 20 stoek Market.

KEW YORK, July 9.-The symptoms Of the
pressure being OF the stock market which
prompted the rallyin in the latter part Of last
week showed themselves again today TO some
extent. But this failed 10 attract any demand
for stocks OF 10 encourage any attempt TO get
prices higher The most notable consequence OF
this srateh Of affairs tie shrinkage In the
lume Of speculGtion. the days aggregate trans
actlons Ia-ling 70 smaller ngure tnan Ior msng
weeks past Immediate developments played but
q small part In the action Of the market. bat
The general outlook on the furure was kept IN
consideration. especially the side OF the
money market Conservative action in specula-
tive matters was telr 10 be desirable. and, II
fact necessary, 10 insure safe progress through
the coming period of crop moving and active
demand for money incident 10 IT, Pressure from
influential banking sources and admonitiOn. not
through public channels, but by personal in1unc-
tion ia many cases, are believed 20 be employed
10 effect this course. Large banking resources
are not available for speculative attempts 70
ift prices. and banking opinion IS believed 70
seek q lower level Il is considered desirable not
10 oppose artificial restraints, and II IS urged
that II further Liquidation should be found nee
esssry and Il should start suddenly from level
OF prices high TO offer attraction Tor
the absorption OF oueTlngs disastrous outcome
might follow The saturday Dank slate5helIr r
with the surplus showing reduced 10 81. 465, ,0l5.
had SIS continuing eject In chilling speculative
Railroad earnings and traffic reports. mercan-
tile adFices, trade and industrial activity ana
other indications 0f undiminished general pros
perity gave rise 70 a repetition OF a well-known
Wall-street argument advanced IN times Of tight
money formulated in the term TOO much pros
perity." The suggested absurdity is due, OF
course, 70 q fGllacy in the argument II is found
in the assumption Of an exhaustion Of supplies
OF ~ nal involved IN active extension OF enter
prisd Profitable investment in successful enter
prise means increase and not depletion OF avail
able capital. The borrowing OF capital, its ex-
uenditure ln enterprises that produce wealth
and the lOdEment OF securities issued IN the
process may 20 on indefinitely without other
effect than the constant increase Of wealth and
capital. But an interruption At any step In tie
process closes the whole machinery and pro
duces what Is 50 strikingiy defined by fore
most capitalist Indigestion ~ securities. The
cause of the closing Is doubt Of the success OF
the outlay Ia producing wealth adequate 70
meet carrying charges, which makes the sectlrl-
ties unsalable beyond first hands which employ
borrowed money 10 carry them. and 50 leave
financial affairs dependent on their liquidation TO
restore the free current OF their now and their
Financial leaders at this time growing
into accord In favOring a pause IN the process
% outlay. Some attention attracted by
English financial criticism Of Vail streets spec
ulafive demands for funds, and bankers here
expressed an opinion that a movement OF gola
from London would not be forced At this time
from q danger 0f prejudicing tle facilities for
a movement I'M the fall, Whe.f greater heeu
might exist The constant fluctuations OF the
daT IN the stock market reflected the shlfting
rne~afions ~ room traders The closing was
arm az recoverles. but not far from last week 5
levels Reiterated reports Of the floating OF 4
81 Paul loan in Paris. which had some sem
hInpee of authority, helped 10 the late recovery
Bonds were steady. Total sales paf FAi"e''
S. 6q5 600.
United states bonds were unchanged on call