Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-24

Yesterdays Closing Prices the
Lowest of the Day.
MANY SELLING ORDERS
Attempts to Realize on Appearance
of Bank Statement.
BALTIMORE AND OHIO STRONG
Many Fluctuations in Prices During
the Week-Effect of the Penn
sylvania Loan.
BALTIMORE AND OHIO STRONG


today of the show of strength in yester-
days stock market, and prices yielded
weakly to the closing. which was at the
lowest of the day with declining tendency
in full force and at losses running from
] to over 8 points for leading speculative
favorites. There was momentary DISPOSE
ton to buy stocks for the purpose of COW
ering shorts about the time of the appear
ance OF the favorable bank statement. but
ceiling orders came into the market with
increasing volume IN the attempt to realize
on the bank statement, and prices were
carried sharply downward throughout
The announcement of the program Of the
administration for the prosecution of the
Standard OIL Company was advanced as
the motive for the selling of stocks 1t Is
to be noted In this connection that the sub
stances of the announcement given out at
the Department of Justice yesterday after
the close of the stock market did not dit
fer materially from the reports current OF
;ts character while stock trading was sun
In progress yesterday and while prices OF
etocks were advancing. The demand TO
cover shorts which was largely respon-
sible for yesterdays rise, seemed TO De
mostly satisfied today, and the efforts 10
get out of stocks were renewed Balti-
more and Ohio was the sole example OF
anything like strength in the market
technical short interest Is said to exist IN
scriptions to the new issue, for which GER
tficates will not be available for denVery
until September
The bank statement disclosed much more
than the expected gain In cash. and the
surplus was helped also by the reduction In
the loan item. The increased banking re-
sources thus made available will be re-
Guired 1t is believed to meet the extra de-
mands during the coming week in prepara-
ton for the July settlements. An advance
in the London discount rate on the appre-
IL 10 T eyA1d
market for Paris account was the only no
table incident of the day in the money ana
exchange situation IN
Total sales OF bonds, par value $S4oooo'
Extremely Irregular Week.
The weeks stock market has been ex-
tremely irregular and the many wide fiuc-
tuations in prices have kept speculative
sentiment confused and irregular. lmpor-
tant developments during the week were
calculated to cause upward movement
of prices and their occurrence found con-
siderable short interest uncovered in the
market as the result of the downward
course which prices had been following
during the preceding week. Notaoie
strength was caused for time by this
combination of influences, and the demand
for stocks seemed confident and sentiment
hopeful The fact then became apparent
that very large selling was being done TO
supply this new demand, and its volume
and character had the effect of tntimidat-
ing the confidence of buyers and Of caus-
Ing them to desist from their operations
The consequence was sharp reaction and
a sudden drop in prices of some prominent
stocks to the lowest prices of the year.
The Pennsylvania Loan.
A large degree of attention centered upon
the Pennsylvania group of stocks owing
to events especially affecting the prospects
and market standing of those securities.
Of ha
ton of the sale OF $50. ooo, 600 of Pennsyl-
Yania bonds to French capitalists put an
end to the uncertainty over the outcome of
that important negotiation. which had been
an unsettling influence for some time pre-
ytously The favorable bearing OF this
event on the American financial situation
was universally accepted, and its wide
reaching significance was made the sub
tect OF extensive comment in a congratu-
latory vein. II forms the first example
OF an American bond issue formally listed
for quotation and trading on the French
bourse. of which the onerous regulations
and strict requirements toward foreign Sc
curitieS have constituted a barrier hereto
fore to such advantages. 1t Is assumed
that way is thus opened for further re-
course by American capital. which consti-
tutes one of the most reliable and constant
reserves IN the money world. The dtsoT-
ganiZed state OF affairs in Russia is oper-
ating at the same time to bring into dis
favor Russian securities, in which French
capital has been embarked to an enormous
extent for long time past, and reports
from French banking sources indicate a
tendency toward diversion of capital into
American securities. The transaction comes
at a time also TO afford grateful relief from
the heavy capital requirements hanging
over the New York market. 1t is assumed
that the Pennsylvania Company's needs
must have been supplied by the New York
market II application to French supplies
had proved unsuccessful. The operation
serves also funding operation which
defers payment for heavy volume of float
ing Indebtedness on New York account 10
foreign money markets, which was incurred
TO secure relief for the emergency of the
San Francisco losses, and also Il is be-
leved. for the conduct of stock market
operations. IL Is believed that the effect
Will be to avoid the necessity of sending
back the gold imported and the possibility
is Canvassed that the credit established
may even lead to additional imports OF
gold
Relief for the Money Market.
There Is growing realization OF the i'm
portance OF all measures which promise re-
hef for the money market during the pres
sure OF the crop moving period in the fall
The index OF this condition is the strong
demand and the high rates for time loans
for periods OF seven months and upwards
carrying over the end Of the year Active
Demand and small offerings for those periods
pave carried the interest rate this week
~
II is believed that obligations have been
incurred which make II necessary that the
course Of events shall progress IN the
ThoAy favorable manner counted upon II
rncom portable pressure and striueency In
the money market are TO be avoided a
prosperous outcome for the crops and A
large export movement OF grain and cotton
are requisites 10 this result. and this ac-
counts for the sensitiveness OF speculative
sentiment TO crop prospects. The market re-
eponded vigorously to the news OF the
drouth In the southwest in the early part of
the week.
Importance IS attached TO the working out
OF the problem OF settlement OF San Fran
cisco fire insurance losses and that cues
ton is the subject of some anxiety.
Much discussion is heard In the financial
district OF the extent to which real estate
speculation IN the neighborhood OF New
York city. we'll In portions OF the
west. is responsible for the present large
volume OF banking credits. This condition is
Recognized as an additional burden on the
money situation. But these considerations
DO not relegate from its position of first i'm
portance in the money outlook the large
volume of new securities which the stock
market must take care OF Issues of these