Los Angeles herald., 1906-07-10
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BY Associated Press.

NEW YORK, July 9-symptoms of the
pressure being, off the stock market
showed themselves again today to some
extent. But this failed to attract any
demand for stocks or to encourage any
attempt to get prices higher. The most
notable consequence of this state of af-
fairs was the shrinkage in the volume of
speculation, the days aggregate trans
actions falling to the smallest figure seen
in many weeks.
Immediate developments payed but a
small part in the action of the market,
but the general outlook was kept in con-
sideration, especially on the side of the
. money market Conservative action in
sirable and in fact necessary to insure a
safe progress through the coming period
of crop moving and active demand for
Influential banking sources and admon-
ition. not through public channels, but by
personal injunction in many cases, are
believed to be employed to effect this
course.
Large banking resources are not avail
able for speculative attempts to lift prices
and banking opinion is believed to favor
an unfettered price movement. If prices
seek a lower level it is considered desir-
able not to oppose artificial restraints and
1t is urged that if further liquida tion
start suddenly from level of prices so
high as to offer no attraction for the alb
sorption Of offerings, disastrous outcome
might follow. The Saturday bank state
ment, with the surplus showing reduced
to $6,465,O75, had it's continuing effect in
chilling speculative enthusiasm.
Railroad earnings and traffic reports,
mercantile advices. trade and industrial
activity and other indications of undirnin-
ished general prosperity gave rise to a
repetition of a well known Wall street
money formulated in the term "too much
prosperity The suggested absurdity is
due, of course. to a fallacy in the arglr-
ment 1t is found in the assumption of
an exhaustion of supplies of capital in
yolved in active extension of enterprise.
Ihe borrowing of capital, it's expenditure
IN enterprises that produce wealth and
the Judgement of securities issued in the
process may go on indefinitely, without
other OBJECT than the constant increase
of wealth and capital But an interrI1n-
whole machinery and produces what is SO
strikingly defined by a foremost capital-
Isl as indigestion of securities The cause
OF the closing is doubt of the success of
the outlay in producing wealth adequate
TO meet carrying charges, which makes
me me securities unstable beyond first
carry them and so leave financial affairs
dependent on their liquidation to restore
the free current of their flow and their
Financial leaders at this time are grow
ing into accord in favoring a pause in the
process of outlay. Some attention was
of Wall streets speculative demands for
FUNDS, and bankers here expressed an
opinion that a movement of gold from
London would not be forced at this time
from danger of prejudicing the facilities
Tor movement in the fall, when greater
need might exist. The closing was firm
@ at @recoveries, but not far from last week s
levels, Reiterated reports of the f1oafinp
OF a st. Paul loan in Paris. which had
some SON semblance of authority helped to
value, s., sos 900 S' par
United States bonds were UNCHANGED