New-York tribune., 1906-07-16
THE FINANCIAL MARKETS.
WEEK OF LIQUIDATION IN HIGH GRADE Sc
CURTTTES
Money Market Outlook Improved Though Easy Rates Expected
Wall Streets Troubles Not Shared by the Business World
THE WEEK IN WALL STREET.

]
of sympathy extended to it from other quarters
Business conditions throughout the country re-
fuse to weaken because the Street in great dis
tress is selling stocks. Business men laugh at the
speculative losses Of the sickened pools and syn
dicates, and the public standing afar off, treats
with derision the speculative community's pitt
full appeal for assistance. And in its despair
Wall Street points the accusing hand at the
Washington administration the party guilty
of bringing about present conditions. Washlng-
ton has been factor in the decline to the eN-
tent of accelerating liquidation at a time when
the market was ripe for just such a movement,
but to say that President Roosevelt and Con-
gress have done anything that will reduce by
one cent the actual worth of American invest
ment securities is to assert something which
possesses no element Of truth Congress has ac-
complished much that eventually will add to the
merit of our securities. and spectators policy
in blaming its troubles to the Railroad Rate bill.
Investigations of corporations and the proDa-
biity of further reform work by the next session
of Congress will not serve to enhance the repu-
tatiOn Of the Street for sound and fairness.
Prices for stocks are being readjusted to a lower
level but underlying conditions are sound, and
there apparently is possibility Of factors
arising which will induce investors to sacrifice
their holdings Most of the active stocks have
suffered large depreciation since last January,
view of the difference between their yield and
the quotation for time money.
Quotations the Stock Exchange declined in
the greater part of the week. There was no sup
port that which came from covering by the
shorts, and indication of immediate
sumption Of activity on the part OF the public or
large banking interests. the latter evidently be-
lieving that the time had not yet for
tended operations on the long side of the market.
~
cases. by strong buyers, but buyers of this class
can afford TO wait for their profits, and under
present conditions it is extremely improbable
that they will do anything to encourage an up
ward movement A speculative rally however,
is due. Throughout the balance of the summer
little than a traders market is looked for,
with the tendency in the direction of lower quo
tatiOns, though in this connection it should be
borne in mind that the chief elements of weak
ness in the speculative situation have been elm
mated and that extensive breaks in quotations
are TO longer warranted by actual Wall Street
conditions. despite the assertions TO the con-
trary TO Mr.. Lawson. 1t is a curious commen-
tary on the value Of this operators bear blasts as
a market influence that stocks now generally
enjoy rally on the appearance of his vigorous
thoughts an instance being furnished Saturday,
when the market advanced in the face of the
most frightful predictions by the frenziher Of
Boston It is Of little use at the present time
to discuss as market factors all the favorable
features in the general situation but 1t is en-
couraging for investors TO know that Wall Street
| conditions rather than adverse developments in
the business world are responsible for declining
values on the Stock Exchange Railroad earn
ines are enormous bank clearings reflect a large
volume Of general business and the crop outlook
| could hardly be better. There no clouds in
the business and financial skies, and the stormy
weather that prevails in Wall Street is not re-
fected in trade barometers.
The development Of easy rates for loans in the
time department OF the market is not looked for
in banking circles in the future; indeed, 1t
is believed that in the balance of the year quota
tions will rule at moderately stiff level under
! the influence of the demand for funds in connec-
ton with the financing of the crops and the in
ouiry for accommodation incident to expanding
industries The liquidation that is taking place
in the stock market serves to keep rates for call
money at a relatively easy level, but even in
! this part OF the loan market higher figures are
/ ant to develop lust as soon as the demand from
the interior becomes active. Probably by the
/ middle of August the movement OF currency
from New York to interior points will begin in
/ earnest and # is likely that the drain on this
centre will be heavier this year than ever before.
/ despite the fact that out Of town banks are bet
I ter supplied with money than is usual at this
| period of the year. A large part of the holdings
! Of interior banks however, are on deposit with
/ the Clearing House institutions Of New York,
! and withdrawals OF these balances doubtless will
I be large in the autumn. If not sooner. Already
the large Western cities report active inquiry
/ for funds in the Southwest where the harvest IS
! under way, and this inquiry is bound at no late
period to be reflected in shipments from the East.
! Fortunately the favorable progress Of the crops
! induces foreign bankers to make advances
against future exports Of breadstuffs and cotton
! through sales Of their long bills and just
long as money remains at attractive level
there will be no lack of foreign capital available
for the local market. barring, Of course the de-
velopment Of disturbance abroad as result Of
the Russian situation.
Declining prices in the cereal markets are
! bringing quotations for grain to a point that
will largely increase the export demand. an in
dicatfon of this already being presented in
growing inquiry for freight the trans
atlantic steamers. and this factor together with
the probability of large crops this year. ought
not TO be lost sight OF in discussions affecting
the foreign exchange market That there viii be
large shipments Of gold from Europe to this
I country in the course OF the next few months Is
admitted by all observers of the financial out
/ look but these shipments viii hardly serve 70
bring about easy rates for loans. as they VIII
! merely offset the funds withdrawn from this
centre for the West and South. If it were not
for the prospect OF imports of the precious metal
the money market outlook would be most dis
cOuraging. but it is we'll to note that bankers
have been preparing for trouble. and as con-
sequence acute disturbance is likely to de-
velop, unless. taking advantage Of the decline In
the stock market. powerful spectators should
endeavor to engineer a bull movement in securi-
ties Secretary Shaw has decided to leave the