The Montgomery advertiser., 1906-07-08
THE STOCK MARKET
MARKET UNSETTLED BY BANK RE-
 TURNS PUBLICATION.
Buoyancy of the Hill stocks Was stim- uiatInw Influence and These Were Anected by ore
 Land RumOrs.

Land RumOrs.
 New York, July 7.--Until it was uri-
 settled by the publication of the week bank returns today's stock market showed the good effects of turn in favor of the support of the market
 varying psnus strursie of tse previoas DOT. tion of the week. A stimulating infiu, ence was the buoyancy of the Hiii stocks. These were affected by revival States Steel stocks responded In sym pathy. Other speculative leaders nov ed upwards coneurrently. Covering or shorts for outstanding bear accounts
 admittedly played 9 large p.,,Y part m ,ase tne upon the appearance Of the bank state ment which was a decided disappoint- ment Preliminary estimates Of the
 rise to hopes of small gain in casn. Tke requirement of the trust companies to compiy with the new law increasing lsthe proportion of reserve to be deliv- | cred in their vaults has been dlscusse9 l for some time. put 1t was not supposed l that the withdrawal of the whole amount needed would be deferred untii the exact date of the required change. I The banks loss of $s.a0s,v0D cash dur | ing the week seems to point to that procedures having been followed. It IS suggested, however, that the banks may have been making some return of Gov | eIHme0I5 QepCSllS m duIlcipdttOn oL tuS call for sl0,o0o, 900 to be paid into the Treasury on July 10. Rates for sterling exchange were maintained in the nom- inal market of toe day and the money market was reported easter. The Bank
 of England secured gold in the London I market without apparent competition from New York. The rIse in sterling | exchange and the fall Tn the discount
 sa aaea s' rss also Tsss was snonsr transfer from here through the sub | treasury of $500.000 to San Francisco
 which is due to rcinittance for payment of insurance losses. the settlement or which is now making progress. Prices made some recovery again at the last and the closing tone was steady. To- | tai sales Of bonds par value $2,000.00G. Conditions in the stock market have
 been exceedingly unsettled during the
 week and the wide and Irregular niove- | ment of prices reflected the influence | of further heavy liquidation and occa- sional struggles against the reaction-
 ary tendency with monetary success. | The pressure Of the July settlements was in evidence witn the opening or the week resulting in considerable lateral and a furry in call money to 8 per cent. On tuesday the maximum rate fell to per cent. and on Thursday after the holiday. 1-s per cent This quiet passing of the effects of the semi- annual requirements afforded some en- Icouragement of speculative holders of stocks and prompted a professional movement for rally which was fur- thered by the extension of the short ir1- terest in the course of the considerable decline preceding.
 But speculative hopefulness was dashed again by the obvious pressure vantage of any sign of strength in the | market. The selling In evidence in the market received various specula-
 ton construction from timo to time A..k xnFAn fl | Likelihood of so many speculative l causes conenrring and the suspicion persisted in that steady liquidation of a
 kind to exercise an in fluence upon | views of the outlook for values was going on. On the day the supposed | clearing out of an important account | for an estate in process of settlement, was ao oA need in explanation; on other selling .or account of board member | intended to retire, and so on. The im- pression got abroad that some selling of high class securities was for account of life insurance companies which are put under new restrictions as to the character of their holdings by the re- cent law. There was believed to be fresh liquidation for account of fire in- surance companies in the course Of pre- pairing for payment of their San Fran cisco losses. This was remarked both in New York and London. At tho same lime the buying demand contin- Ued inert and the usual reinvestment demand which is usuaI feature of the period of large disbursement of divi- dends and interest, was unappreciable. t'his was true of the. bond market in an even more marked degree than in stocks. Such buying as there was
 see emed to be confined to the short &C., count, and as this proceeded, the mar
 ket was quick to show its weakened technical position due to the reduction of this potential source of support. Accepted financial authority offered an estimate of new capital issues for the | Ga -s-. kl~r ~g nrs
 showing an aggregate Of a par value
 of S327, 106, 900, or within $42.000,000 of
 the new offerings for the whole of the
 year-of 1905. Most of these new issues
 term notes are included which must be
 fu nded into permanent form in the nos
 distant future. It Is pointed out as
 a contrast with the period of undl-
 ent gut IS of high grade securities,
 while at that time immense capital
 creations growing out of great indus
 trial mergers and issued at heavy ad-
 yances over previous valuations of the
 rroperties merged were responsible for
 the condition of indigestion. Yet the
 iethargy of the demand in the pres
 ent market is scarcely less pronounced
 inc Immediate situation is consider
 ed 10 be complicated by the proposed
 issue of SS Ss 0 SorR 4 ea%os sonds
 which are to be Nffered this month A
 40 per cent nstallment on subscrip-
 tions to new Baltimore and Ohio stock
 which will call for upward of $11,000,-
 00O and a $5,000,000 subscription on
 Canadian Pacific stock alsofall due this
 month. Tn the case of the government
 looked for from the additional basis
 afforded for issue Of bank notes. By the time these requirements are out of thA way 1t is expected that the tnte- rior demand for currency to move the
 crops will have begun Last week g expectations of large engagements of gold for exports have been disappoint-
 secured by the bank of England and competed for by Paris The securing of $i 500 O00 gold in Australia for New York was confirmed and hopes are still entertained of a movement from Lon don. The pressure on the stock mar ket is in strong contrast with the psos-
 perity and bright prospects uniformly reported from all departments or eusi- ness and industry. While uneven con ditions are reported from time to time
 for the crops, general confidence ex- ists in the promise of prosperous har-
 yesting outcome Commercial agen- cies point to well sustained demand for merchandise for future account re- flecting the confident attitude of the community. Railway earn ings show large increases over the cor responding periods in previous years and traffic officials report an undimin- ished tonnage In sight. It is recog1iz- ed that these very conditions of pros perity and confideucei are responsible for the large demands for capital for money credits and for actual cIrcu!a- ton and that those need have raised the rate of interest and cramped the of ,I n gOnne diTeC-