The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-07-02
TEE FINANCIAL SITUATION.

AT the opening OF the last o business
on the Stock Exchange WA almost wholly
OF Q professional character, but there was
continued evidence Of the operations OF
spoouletors for tho decline who were en-
deavoring 10 depreas prices and to compel
liquidation by pools and other large specu-
lstive interests on which the advance In the
rates Of time money imposeda considerable
burden This party called TO It's aid q great
variety Of Sensational rumors as to the
alleged purpose Of the Administration In
regard 10 the investigation Of corporations,
railroad and industrial, and the criminal
prosecution OF officials who might be held
responsible for any violations or evasions OF
tho law. Most Of these stories were entirely
without foundation, Ge for instance, the ono
to the effect that the Interstate Commerce
Commission would recommend and the
Administration probably favor the acquisi-
ton by the Federal Government Of tho an
thracite coal lands 70 as to preclude the
possibility OF the production of hard coal
ever becoming a monopoly. But notwith-
standing the fact that the circulation OF
these reports came at q time when tho an
nounoement of the Governments attitude
with regard to the Standard Oil Company
was still fresh in the minds Of people in Wall
Street, very few were willing to believe that
Wholesale prosecutions we're contemplated.
Therefore, such talk as that regarding q
supposed intention to arrest the presidents
OF some OF the important milroad systems
fol- very fiat, and then those engaged in
hammering the market circulated rumors
to the effect that the banks had begun to
discriminate against industrial collateral in
loans The inference at which the Street
was expected to arrive was, Of course, that
industrial prosperity was on the wane and
as simultaneously pressure was brought to
bear upon q number Of prominent industrial
issues a large part Of the trading COM
munity arrived at the conclusion thai the
turning point had come in the market and
that tho general tendency Of prices would
hereafter be downward. To strengthen the
argument Of the lessening in industrial
activity the market for spot copper in on-
don, which for q long time has been SUBJ
jeoted to q great deal Of manipulation, was
worked downward, and the impression
created in regard to this particular line OF
industry resulted in q good deal OF selling Of
A~malgamated Copper and Anaconda stocks,
both Of which broke sharply, the latter max
ing on Thursday a new low record for the
year. Somewhat similar rumorsi In regard to
the iron and steel trade were shown to have
been entirely unwarranted VIII en- the an
nouncement was made that the business
booked In tho first three weeks of the month
doubled the aggregate for the correspond
ing period a year ago. Another matter
which was worked to its fullest extent as an
adverse factor was the announcement that
O number OF the anthracite coal mines would
close down for a few days, although, as a
matter Of fact, this was nothing moro than
the usual cessation OF labor at the mines
around the Fourth OF July. But while the
for q depression here epumer-
ated had In no instance any real merit, there
was one factor which contributed largely
to the SUCCESS Of the interests working for Q
decline in the market, this being the calling
loans and the tying up Of funds In prepare
ton for the July disbursements, which this
year are the largest on record.
II has been estimated that the amount to
be dispensed in payment Of interest and
dividends ON railroad and industrial bonds
and stocls at this season is not less than
eiss 900 900, exceeding by upward Of s1s,-
u UU0 LOO aILHou4b 6o AAotA AbdSCA AL ouAy
last year. In view Of the necessity in
In preparation for the disbursement
such an enormous amount Of funds 1t
Of course natural that the banks should
be unwilling TO make time loans except at
high rates; and for accommodations to carry
the end OF tho year as much as 5H per
cont. became the ruling rate about the
Of tho week. Even at the advanced
borrowers had difficulty in satisfying
their requirements and under such circum-
stances liquidation became a matter Of
necessity. Some OF the pooled stocks were
naturally tho heaviest sufferers, Inter-
boroueh-M etropo Titan being conspicuous
In this respect on account OF the
meut that the members Of the syndicate had
been called upon to pay up a large part OF
their subscriptions 80 as to contribute the
money involved in the heavy purchases OF
stock made during the preceding week in
The vain effort to sustain the price at so.
Reading was another heavy sufferer, as was
also American Smelling and Refining, al
though the latter had a sharp but only
recovery from it's lowest o n
revival Of umor that in the fall b divi-
dend on the common would be raised from
7 to 10 per cent. q year. The revival OF
this story was probably inspired by the
increase in the dividend on Anaconda stock,
which directors at a meeting on Wednesday
voted 10 place on q % per cent. basis by the
declaration >of q quarterly rate Of 81 ,37H
\ share. This action might naturally be
expected to set at rest the disquieting rumors
a lessening Of prosperity in the copper
trade but the feeling in the Street had become
70 uneasy that more attention seemed
10 be paid to the representations Of a Bos-
ton bearish operator than to the essential
facts in the situation. Some light was
thrown on the outlook OF the anthracite
coal trade by the increase in the annual
dividend on Ontario and Western from
TX to . per cent. for as this road Is under
NE control OF New York, New Haven and
Hartford, Of whose policy extreme on
servatism Is the dominant note, there can
be no mistaking the significance OF the
change in the amount Of annual disburse-
- -h;oh 4h~ diracfora fe1t called upon