The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-18
rnE KlNANriAL AfrrATNes.

daaser N sgfsmpslha ~ ea'lmsss M ehsF'
segsf n The ennefai siiuRtien sven frrfH =
strictly starh mafhe' rutnt ~ visF ffrfn
afrinds sNrrdri w ma daily snd ssr''ly
HieiiatinNs IN ssruffg rfi"ea w" s'rrE
mafss' 10 nuw tdd has hem fof . luna tive
ma fhHt has hepn practically dNseF'~t ~
hnnhiNa infsersts sNd Nv The aHnetsl r'ihlic
and no flse anil fsil In pslees IN v haa hern
! determined splclV w ~ huyiha snvi aetl'na
Vtnfttinns ~ rifply pfufeasiunHl etTc't'
ia,,ss the great majority ~ ih"s~ rtrrh
fots afe epntent 9Th atnall pfunis 90 ei'h"t
sliS NJ ibsif ventures sol M trIllah and
shrsfiabs Nv tUrna q dpgHn times IN Nv"
rpufar q tha Seek tta' ~ Tho IMMINENT
they afe Inclined ~ sofh f1f a reaction In
pFicrs. bHelne ,heie cuncltaiuhs os'ensihly
ftuu tho nta,hetlc speculative tetnf"f da'
pisyed ~ that great mass NJ artni-strcula
tore snd Investors throughout the cutntfy
ina, Wall ~ trr, incltdca under Tho term ~
stha mnhllc'. hut shwnld apfn@ positive de.
veiortneni favorable ~ vHluea occur over
mint they would probably. NJ tho mua' NJ
them. 10 found buying stocks With er'h,iai.
aam A market governed 10y whifns ~ ihla
sort h necessarily htful and irregular and
often esraadinRty dull Great advances
ran 10 engineered under such circumstance
In crftAln stocks ~ which there Ia only -
small floating supply In Wall Street although
M great declines are apt IN occur IN the
same stocks when tho SPECTATORS VINO have
put them M deaire 20 take profits and, hnd-
Ing that no outside buying has hcen Induced
are compellel To sell them to each other
And, similarly, q raid on the market can 10
undertaken a. such times which may havo
the effect Of breaking tho prices OF stocks
very considerably. and yet "a soon as u -
found that II Ia only Spectators and not
investors who arc selling stocks prlceS
rebound IA quickly "a they declined. me
fact TO he borne in mind Ia hat the per
turbations and idiosyncrasies OF n market OF
his kind should not he taken as indicating
the real condition Of financial and economic
affairs.
The substantial and fundamental points
In the situation to-day stand out clearly
II people are not buying stocks. the mar
ket Ia one over which no large volume
OF Humiliation appears to be hanging. The
Wall Street commission houses VINO point
To their Offices bare Of customers ana
complain. on the one hand. OF scarcity OF
huyinR orders, state on the other that they
are carving almost no stocks for clients
that they do not thus have to borrow
large amounts Of money and are therefore
in exceedingly strong shape. There is not
the slightest abatement in general business
throughout the land, and our foreign trade
keeps I'D splendidly, Buckingham thisy year
TO s,lrpass all records. The outlook for the
crops. although not perhaps so brilliant az
il was a month ago, is still for a full average
Weld Of the leading grains. The prepare
tons for fall and winter mercantile busl-
meas based on actual orders for goods are
greater than ever before known, and there
is every promise that the output OF the mills
and factories and manufacturing establish
ments Of all kinds will be pushed to its ut
most capacity for a long while to come.
Nevertheless, people do not seem inclined
TO purchase securities and the banking ana
bond houses say that the investment de-
mand especially is poor. There are all sorts
of theories current to account for this some
measure Of responsibility for 1t lies I'M
doubtedly upon the upheaval among the
| life insurance companies and the long series
~ recent exposures" 1t is said that people
are making 30 much none. in their own
businesses that they find no temptation
to employ it in Wall Street. Every one is
aware that great interest Ia now Deing
| taken the country over in real estate specu-
lation that has not only used up a great
deal OF money but has had a tendency
TO divert attention from enterprises whose
property is represented by share certlh-
Gates. There have been far more instances
in recent months than might be supposed
of speculators who have made large pronts
IN real estate transactions and, after closing
tbeee transactions and surveying matters
in Wall Street with the idea Of making ven
lures there, nave again returned to the
real estate field as the one in their opinion
Offering the most favorable chances OF
;noreasinR their wealth. 1t ia asserted by
those who are hostile out and out to the
present market that prices OF stocks are too
hiah compared With the present price OF
money and that, as there seems no great
probability Of any railway deals or FUR
Their unlocking Of equities" in the near
future. the present income return OF stocks
and bonds is too low to induce purchases
NJ these securities with money lending for
long periods at between S and So per cent,
and these adverse critics, many OF whom
ara interested in speculation for the deoline
in the market, harp upon the volume OF
recent new issues of securities. More
or less doubt appears to be expressed
in banking circles as to the money situa-
ton in the fall and winter months of the
year. Money is easy now, but high rates
for the Use of money over the end OF the
wear are asked. Our rank reserves are
low and nave not thus far enlarged as they
should following the receipt of money
from San Francisco, and the usual financial
strain incident to the crop moving must be
undergone at the customary season. The
position taken by many banking people is,
in other words. that it is impossible to judge
of the money situation for the remainder OF
the year as a whole from the fact that money
can now be borrowed on call and for two and
three months use at low figures. Influences
making for caution. too, have been the
uncertainties attending the settlemen. Of
the insurance claims at San Francisco,
more trouble stories from Russia and talk
regarding political contingencies here.
The reason most commonly assigned for
the depression in prices last week was, in
addition to the disgust Of habitual specu-
latore over the failure Of the public to enter
the market as buyers. the news from the
AGRICULTURAL sections whose unfavorable i'm
- wos fret noticed about ten da va mo,