The Washington herald., 1907-06-23
MARKET AT LOW EBB
Days Transactions Smallest
for Many Years.
FOREIGN SITUATION WATCHED
No Great Fear of UpheHvaIs Felt,
However-Weekly Bank Statement
SatisfactOry-Sp1end Weather for
Cotton and Wheat Gives Cheerful
Tone to the Market.

New York, June 22-Transactons in
stocks to-day only reached the triiing
amount Of $500 shares, the smallest
quantity Of dealings on the stock ex-
change, even for a Saturday half holi-
day, that has occurred within many years,
and. as might have been expected. under
such circumstances the days market was
utterly devoid of any character or signid-
canoe
Absolutely the only matters receiving
any attention at all during the day in the
financial district were the various foreign
political situations and the weekly bank
statement The foreign financial markets
were not particularly heavy, sentiment in
London being favorably affected by the
beginning Of gold exports 10 London from
this center, while there was something
Of a turn for the better in the French
internal troubles. Liquidation for Paris
account, however, continued in London,
and all the foreign exchanges were per-
turbed by the imminence Of the financial
settlements both in London and Paris.
The weekly bank statement only at
tracted attention because Of what was
generally recognized TO be its absurdly
inadequate showing Of local conditions.
Il is known that the banks have lost
nearly $1,000 600 during the week through
gold shipments, and have received less
than half Of this sum on net balance in
their transactions with interior institu-
tions. Nevertheless, the bank return to-
dav under the average system Of COM
puation exhibited less by the banks Of
but $1,000; and inasmuch as bank loans
decreased S5.sJ3lQ). the surplus reserve
Of the clearinghouse institutions in
creased S111Lg75.
Poor Report Next Week.
The reduction in loans was expected, in
view Of the fact that the trust companies
and other similar private lenders have
been recently extending credit on account
Of the higher rates for the use Of funds.
The erroneous exhibit thus made viii un-
doubtedly be repaired after the usual
fashion in the succeeding week, and as
the banks start off the new week with
further loss Of over $2.l04o10, owing to
gold exports, the indications are for an
unusually poor bank showing next Satur-
day.
Events during the week, while neither
numerous nor important in a financial
sense. were not at any rate sufficient to
avert a constantly narrowing tendency in
the activity Of the market DUllness in
the market was more pronounced than
at any time previously i'm the year, COM
mission-house business being almost en-
tirely noneXistent and transactions in
stocks only consisting. according TO all
appearances. Of the efforts OF a decreas-
ing number Of habituaI spectators 10 OBJ
tain infnitesimal profits through mutual
trading.
More attention than 10 anything else
was paid perhaps to the continuance Of
gold exports upon q large scale and 20
the fact that late in the day the Bank Of
England joined with the Bank OF France
in offering interest on gold IN transit 70
the British capital from this side of the
Atlantic The hand Of the English bank
appears to have been forced In the matter
by the recent financial difficulties in
Egypt incident 10 the collapse OF specula-
tiOn in land values there.
A favorable factor Of the week was, on
the other hand. the development Of splen-
did weather for the crops over the COUn-
try's entire agricultural territory in the
cottOn-growing States, as well as in the
winter and spring wheat sections. Great
improvement in crop conditions has man
ifestly taken place, and the high tenn
peratures Of the week have also eXer-
cised a beneficial effect upon the cogn-
trys business in promoting sales Of sum
mer merchandise that have heretofore
been notably delayed.
Future Orders Are Heavy.
4 degree Of caution in making com
mitments for the future IS now evident
IN business circles throughout the coun-
try, although as yet orders for the future
delivery Of goods are IN many lines great
er than they were at the corresponding
period a year ago.
Another matter that is cause for graft
fcation is the change for the better that
has recently occurred in railway net
earnings. The fun reports Of the opera
tons Of the railways for April as they
are now being received show that gains
in gross earnings are greater than pre-
vioUsly during the year, and that, al
though these Increases are still heavily
Offset By enlarging operation expenses,
the degree Of offset IS less than It has
been previously. It is TO be remembered,
however. that the particular cause Of the
increase. in railway gross earnings for
April Is that in the same month a year
ago the bitUminous and anthracite rail-
roads were in the thrOes Of a coal strike
What could undoubtedly benefit the SC
CUTity market more than anything else
at the present time would be q cessation.
so far as it could possibly be brought
about, Of a further issue Of railway or
usual securities. There was much COM
ment during the week concerning the ex-
trene inactivity of the bond market, and
hostile criticism was directed to the fact
that at this season the bond market IS
usually extremely active, owing TO the
investment Of money IN anticipation Of
the receipt Of July interest and dividends.
The fact is that. although the gross
amount Of such investments has been
diminished this year for certain plain
reasons, i is still going on in considerable
quantity, but has addressed Itself TO ran-
way notes and other high-priCed and
short-time obligations Of like character.
which are dealt in in a way that escapes
public notice
Investors are naturally not willing to
buy the old and Well-kuown railway
bonds, yielding between ( and 8 per cent.
when they can buy the notes Of corpora
tons. Ike the Pennsylvania Railroad Com
pany. yielding So per cent Slowly but
surely these notes and other newly Gre
ated securities like them are being alb
sorbed, and when they are gone a demand
VIII, IN the nature Of things. be felt for
securities of tho old-fash:oned class II.
however, our corporate enterprises keep
flooding the market with new security is
sues, chances Of an adrance in security
prices must necessarily be decreased.
GOVERNMENT BONDS.