The daily morning journal and courier., 1906-07-16
STOCK MARKET FEATURES
4 BETTER BANK STATEMENT
 AND BETTER FEELING,

the Bulls Get at Work-Chances Not
 Far Of for the Bargain Hunters.
 The improved bank statement of Saturday brought gleam of sun shine to the depressed bulls.
 Some of the stock market oracles pro- fess to be astonished that stocks keep going down when the crop outlook is so excellent, business all over the country so prosperous, not excepting the iron and steel trade.
 There are all sorts of explanations such as "object lesson to Roosevelt" :" a wave of pessimism," downfall of public confidence owing to exposures in higher places" etc.
 The real reason appear to be after all the immense demand for money in mercantile business, in manufacturing and in real estate booms all over the country. The latter has in the opinion of many judges reached the top of its crest and some collapses are about due.
 Real estate booms such as the one now prevailing, sop up great deal of money
 One New Haven real estate man who recently went down to West Virginia was astonished to find that in one of the small towns out there they had got the price of central real estate up to s 900 a foot, higher than is asked for Chapel street central real estate in New Haven.
 So Wall street sighs but to no avail, and time money for six months or so brings nearly per cent.
 This does not help out Wall street spectators any.
 The enormous real estate speculation throughout the country and its reac- tion on the securities market must be reckoned with. Not only has the amount of capital tied up in unimproy- ed land run into enormous proportions, but the craze for building has kept pace. Building permits in the first half of this year in the principal cities of the United States, reached an aggre- gate value of $6GO0OOO00. Locally at least the boom has touched its apex and is gradually declining. This may l mean some easement in the money sit uation in the fall for q good part of the increased $16O,OOO,OO0 in bank loans l in the past three months has come l from this one source.
 Another thing to be considered is the | fact that from a half to three-quarters | of billion dollars worth of undigest- ed bonds in the hands of syndicates and eating up a very large amount of l interest money. It is plausible that members of these syndicates might try and realize on what they own that is marketable in order to carry what is not.
 | By and by prices of stocks will get down to where the shrewd investors will buy. Then there will come a change. Even now there are fair bar 1 gains to be had.
 Of course investors don't want Ten. nessee Coat at 140, with it's record ot not paying dividends only once or twice in a dogs age
 But there are many safe, reliable stocks which are getting near to being on the bargain counter, especially as the country is to have apparently splendid crops again.
 But the money tlghtness which has been quite acute for weeks, promises tC be amelorated somewhat owing to preparations in advance of the cror moving time, Call money is easy be, cause many heavy borrowers of time money not having use for their borrow. ing loan it out as call money.
 Brokers have also made preparation' for a storm, It may come. If it doe, they ought to weather it better thar ever before. Their preparedness ma! turn 1t aside. To what they have done for themselves may be added what thc probable large inflow of foreign gold ir the fall, the effect of government de. posits from Panama canal bond pro. ceeds, and a liberal treasury policy ir emergencies. may do for them. Tn, outlook is fairly clear to the borrowers on stock exchange collateral. It is mol so much as to the corporations that need money to carry on improvement. already begun and which are unproduc tive until they are completed. Here is the real rub. This is a situation tha will have to work itself out in the next few months
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