The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-06-28

tant lines Of new mileage which are
demanded by the growing necessit ties
of the country. The announcements
of new capital requirements for rail-
roads alone during the heNt six months
already amount to about $25O,OOOOOO;
st. Paul, New York Central, United
States Steel, Wabash Great Northern
and SedbOard being included in this
total. This does not take into account
the current issues of Pennsylvania
which are estimated at S5O,OO0,OOO. Of
course, these unusual OUTLAWS will not
all come at once. They will probably
be so distributed by banking interests
as to have as little effect as possible
upon the market. The railroads, how
ever, must have the money; and, in
view of the general scarcity of that
commodity, it is within reason TO ex-
pect that they will have to pay good
prices for the accommodation.
The condition of the money market,
it need hardly be said, acts very detri-
mentally upon bonds. There are many
good issues floating in the market
awaiting an opportunity for Judgment
in investors strong boxes. Issues pay
ing 80 to 4 per cent are naturally a
drug on the market unless offered at
very material concessions from present
prices. Reliable estimates indicate
that between $500, 100000 and $500, OO0,
900 of such bonds are now awaiting a
revival in the investment demand. In
two weeks the July disbursements, APP
preaching $15O,OOOOOO, will be available
and are likely to act as a temporary
stimuant to values, unless other I'M
favorable elements should interfere.
The speculative situation remains
somewhat mixed For several weeks
we have had an excellent trading mar
ket but uncertainty regarding the crop
situation has produced more or less
disposition to postpone speculative
commitments until the outlook is more
definite. Values are still considered
high, though with the general situation
so satisfactory the opportunity for
bearish tactics are more or less limit
ed. In business circles the tone is still
optimistic, yet it should be noted that
here and there and there high prices in
the commodity markets are restricting
business. The iron trade. however, con-
tinues on i'm it's extraordinary rush Of
prosperity, receiving much of its sup
port from present and prospective large
railroad orders The new construction
work and improvements already pro-
jected will consume enormous amounts
of raw material for the coming eighteen
months, and this alone is quite suffi-
pipDt IN lrpap tbn iron Trade i'm q state
of sustained activity. Stock market
prices may witness more or less irreg-
ularity. Thursdays sharp break in
Reading is an example of what may be
expected at any time in stocks which
have been raised by force out of all
proportion to their dividend or invest
ment value Such experiences tend to
unsettle the market generally. The
speculative spirit is temporarily dor
mant, but the leading bankers show
unimpaired confidence in the situation
as we'll as a wholesome disposition to
discourage Objectionable plunging OPP
erations which threaten financial sta
bility. If the crop situation develops
satisfactorily we may look for a better
market later on. Any serious damage
however, to any of the growing crops
and especially corn, would precipitate
sharp reactions. The money markets
Also although a secondary influence
just now must be closely watched, for
higher rates, though not at present eX-
pected, are possible, and would affect
values adversely.