Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-23
THE GOLD ENGAGEMENTS
Foreign Exchange Strength Indicated
Further Exports.
NO INTEREST IN TRADE REPORTS
Prices Drifted to Condition of Leth-
argy-Revival in Bond Market
Needed to Revive Activity.

NEW YORK. June 22.-The stock mar
ket was at a standstill today A fiuctua-
ton OF much as a quarter was rarity.
Feeble as was the drift of prices, it was
inconsistent toward and upward without
any apparent reason. There was slight
recovery after the appearance or the bank
statement, which proved less unfavorable
than the forecasts. The loan contraction
helped to scale down the deposits and the
reServe requirements and the cash de-
crease was much smaller than was antici-
pated. II was taken for granted how
ever, that the weeks exports of gold fig
ursd in the averages for a small proper
t!on Of their real effect, leaving that effect
to be transferred over into next week s
statement. This expectation left a bad
impression.
The engagement of gold for London was
increased TO $3.50. 600 today in time for
the outgoing steamer. Foreign exchange
rates were strongly maintained today, es-
pecially for cable transfers, in spite of the
supply Of that form of remittance sup
piled by the gold shipments. The urgent
demand for cable remittances was at
tributed to the approach of the London
stock market settlement, regarding which
some anxiety is felt in London. The sus-
tRined strength of foreign exchange caused
d conviction that the gold export move
ment is to be extended next week.
The weekly reports by the mercantile
agencies showed some improvement in re-
tail trade conditions. caused by the more
reasonable weather, but the stock market
~es unresponsive to this. statement
from Washington that the report of the
Interstate commerce commission on the
Hartman railroad investigation would be
presented by July l. and would be con-
Hdered by the Attorney General with a
view to legal proceedings accumulated the
gtagnation in the market The slight re-
lost. and the closing tone was easy. Total
sales Of bonds, par value, s22o0O0.
Gold Shipments to Europe
Gold has continued to go out to France
this week and Friday an engagement
was announced for London direct, stmu-
lated by the allowance by the Bank Of
England of interest on the shipment while
on the way. The political turmoil in the
south of France has served to aggravate
the pressure for building up reserves in
Paris, and special requirement on the
London market has developed with the
disclosure of financial difficulties at Alex
audra. The slender margin of the surplus
OF the New York banks and the approach
of the semi-annual settlements offer a
prospect of possible strngency of money
about July l that has kept down all dis
position to embark in stock-market VEN
lures. The market has drfted in a condi-
ton of lethargy.
Inc absence OF acute pressure or nQulda-
ton under these unfavorable conditions is
accepted as a negatively favorable sign.
The market has been equally unresponsive
10 q number of other incidents which
would be regarded as against values in a
period of activity. The belief that some
recession in trade activity is to be met has
gained force. All signs of such recession
up TO the present time, however, fall far
short OF the apprehension felt at the time
OF the violent decline in the securities
market.
Deadlock Over Copper.
Copper producers and consumers are at a
deadlock, and the large producers are be-
ginning to admit the prospect of some re-
duction in the price of copper.
Prices of iron have receded also, and
there is some yielding of prices of steel.
The passive resistance shown by the stock
market however makes il evident that the
decline already achieved is considered to
have discounted sufficiently these features
in the situation. The bond market thus
far has remained in a torpor and shows
no evidence OF the usual buying in antici-
patton of the disbursement of profits on
such a large scale as is promised for the
end of the half year. Some revival in the
bond market is generally looked to as
prCvement in the stock market. L. S. IS
and 3's have Advanced a. and the old Is
i per cent on call during the week.