Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-03
BACKBONE OF THE MARKET
London Holiday Withheld Initiative
From Abroad.
DULLNEss RULED DURING WEEK
Tone of Money Mart for Loans Re
fleets Desire to Keep Resources
in Hand.

NEW YORK, June 2.-The stock market
had better tone today. with an aggressive
advance of nearly points in St. Paul as
the backbone of the movement. There was
realizing after the appearance of the bank
statement which was considered unfavor-
able and the closing tone was quiet. There
were important breaks in the ranks of
the list which left the market spotty, and
for that reason unsatisfactory to those
watching for evidences of general rising
tendency. The movement in st. Paul was
based on unofficial reports of the plans
for financing the Pacific coast extension,
which pointed to subscription privileges of
stockholders for treasury stock and low
issue OF bonds 10 provide the remaining re-
quirement. For some time stocks have been
unfavorably affected by reports of addition
al capital issue, and the early advance was
regarded in itself as hopeful sign of
possible change in speculative sentiment
OF this topic. although the promise of sub
scription rights of considerable value would
add to the attractiveness of the stock. The
bank statement showed only sl,128.ooo cash
gain compared with preliminary estimates
o. between $1,000 900 and 5000. 900. and
with a loan increase of $2,152. 400 included
in the deposits The surplus item received
only nominal benefit
Holiday in London.
The holiday in London left this market
without initiative from abroad. Expecta-
ton OF easier money conditions next week
with the June 1 requirements out of the
way was factor In the market. Total
sales bonds, par value 81 $4,000 The In
terruption of the midweek holiday and the
prospective Saturday and Monday holidays
In London have been offered nominal
causes for the extreme dullness ruling In
the stock market this week, speculative OPP
orators dreading a season OF closed mar
kets owing to the lack of opportunity at
such times to act promptly on sudden de-
velopments. Commission houses complain
OF an almost total lack of interest In the
market.
Dealings have been made up of profess
sional ventures, and the resulting move
snents We're not convincing reflection of
any genuine changes in the ownership or
securities. These professional operations
have been congested In handful OF issues,
and the wide and rapid movements in these
have had little effect by sympathy on the
GENERAL body of the market. Prices have
drifted listlessly and with constant fuctua-
Cons outside OF these special stocks, and
were not carried far from the pre-existing
level at any time.
Events of the Week.
: Some of the events of the week were OF
Important bearing on financial conditions,
but they were OF no effect In stimulating
hesitation and uncertainty of speculative
sentiment are supposed. therefore. to lie
deeper.
The inauguration Of force OF the return
flow of currency from San Francisco was
accepted as significant OF the passing of the
financial crisis following the successful re-
opening OF the banks there.
The release OF the pled-up cash reserves
there to provide for the emergency caused
by the enormous property losses due to the
rto oil OF aRt
in easing the money situation in the whole
country Meantime the general resumption
OF normal business conditions will not be
complete until the extra holidays which
have been made consecutive by proclama-
fIon of the governor. ever since the earth
quake shall cea Sc which will be on June
4 This period is awaited for more exact
Indications OF the business situation.
Fire Insurance Payments
The date for proving insurance losses has
also been extended to sixty days beyond
June IS and the adjustments in this field
will be necessary to define exactly the
financial status not only OF the claimants
but OF the insurance companies
good deal of Importance Is attached 70
+he outcome OF the insurance adjustment:
to determine the final financial enects OF
the great disaster. In the same way ehe
easier conditions In the market, Whlch az
cxnected this month are onscursu II, nv" ',i
tnauence on the stock market by the III
terior- prospect which is uncertain
1be largo payments this week. including
a. so on0 600 Pennsylvania note Issue, the
Tune 1 settlements and the chicago ana
Northwestern stock subscriptions. nave
been concluded without damaging oistur o.
ance In the money market, partly due 70
tte renlacinR I'm call loans OF the proceeds
OF the Pennsylvania notes ieft on deposit
with the banks -, -.
,c,,nns the Immediate outlook is for ease
In the money market. But the tone or the
money market for loans which WIN supply
resources through the fall ana INTO tue
-, year reflects desire to keep resources
I'm hand for the period OF the moving OF the
crops and an uncertainty OF suihcient sup
niles 10 maintain ease In the money mar
ket through that period.
Foreign Money Resources
Much depends on the opinion Of bankers
IN the command OF foreign money resources
during that period.
The question OF an outlet into foreign
money markets for American securities Is
Of parallel Importance. owing to the large
volume OF these which are known to be IN
concentration The lethargy OF the present
Investment demand for bonds and newly is
sued securities is a weight upon the pros
poets The good effect upon sentiment OF
The placing OF $50 600 600 OF Pennsylvania
bonds In Paris has been somewhat impaired
by the lack of any sequel TO show an ex-
tension OF this movement
current reports OF a loan in Paris TO the
insurance companies 10 nilahCe tnet Gan
Francisco losses and to an extensive note
issue there OF ST. Paul promises to finance
that roads Pacific coast extension have
failed of authoritative confirmation Flu
;ure conditions In foreign money markets.
as In ours are subject to the exigencies OF
extraordinary activity of trade. which Is
common to Great Britain France and Ger
many as well TO the United States.
The importance Of the growing improve
,,ent in the condition OF the Bank of Eng
land Is affected by the fact that II Is large
Nv due to the release to Its own reserve OF
Madam government funds formerly held by
ere hank This release was definitely fore
seen. and has been the motive, for the bank
bas suffered It's reserve to run far below
the customary ratio OF liabilities for months
past
The Crop Prospects.
The prospect for the crops Will be OF in
cress,ng influence upor stocks from this
time forward, whether for Improvement or