The Washington herald., 1907-07-02
BUYING MORE ACTIVE
Rise in Call Money Rate One
of the Market Factors.
CROP NEWS IS UNFAVORABLE
Steel Common Dividend Rate May Be
Enlarged Soon i'm Belief of Brokers.
Gold Exports 10 Paris TO BE Re-
sumed This Week-Old Baltimore
Ranking House Fails.

New York, July IA rise in the call
money rate in this market to-day to l5
per cent. higher level than that touched
at the corresponding period of any year
since the troUblOus season Of 1898; rise
in sterling exchange here. and a fall in
sterling in Paris TO points that, despite
the advance in call money locally led TO
negotiations for the resumption Of gold
exports to France on Thursdays steam
er. these arrangements being also accom-
panied by an active bidding for gold for
Paris account I'm the English market;
notable advance in the price Of wheat
due in large part to the receipt Of un-
favorable crop news from the Northwest
a further rise in the price of cotton
caused by predictions that the govern
ments report on the condition OF the
crop to be published tomorrow would
show that the state Of the crop had not
improved as much during the month Of
June as has hitherto been supposed, and
the announcement Of the failure Of an
old and well-kn0wn banking house N
Baltimore, were Developments that were
received to-day with apparent enthusiasm
by the security market, and resulted in
more active buying Of stocks and the es-
Enlistment of larger gains in prices than
have been witnessed on any day since
the recent upward tendency IN the mar
ket became visible.
II would be idle to affect ignorance Of
the fact that in ell conservative quar-
ters and throughout Wall street generally
the advance in prices to-day was regard
ed as being due only 10 out and out
manlpulative effort. directed against the
large and hitherto stubborn interest of
the decline in the market that has been
lately created. So far from there being
any indications Of buying of stocks by
commission houses, liquidation Of hold
ings by these houses was a salient fea-
ture Of business.
Rise Not at an End.
The sustained character Of the days ad-
vances, however, and indications that it
was receiving the support Of one or two
large financial powers. led to a general
expression of feeling on the part of ex-
perienced observers that the rising move
ment had not yet eliminated; but added
TO this was necessary carollary con-
clusion that the market was being de
priyed Of one Of its greatest technical
qualities Of strength through the extin-
quishment of contracts for the fall.
Every one in the financial district to-
day recognized that the rise in the price
Of call money was solely brought about
by the necessities incident to the July
disbursements, and that presumably the
high figures for accommodation OF the
kind would soon be reduced This fact
did not however, deprive the extra rate
reached during the day Of great signif-
canoe, which testified with a plainness
that could not be denied or blurred as 20
the existing money scarcity.
or course Il is not improbable that by
reason of the governments payments on
account Of the maturing I per cent ma
tional obligations the supply Of money at
this center viii be somewhat temporarily
increased during the next two weeks on
account Of the fact that the greater p0T-
tion of the per cent bonds turned in for
redemption will be paid of through the
New York banks. But the money thus
received will naturally soon be sent to its
owners In different portions Of the cOun-
try.
FrHnce Needs Gold.
The local money situation. in view Of
the increased pressure for gold from
France. can only be described as forbid
ding, from every sane point Of view. a
movement for the rise In stocks. however
little It may interfere with the twisting
of spectators for the fall
The advance in wheat to-day was doubt
less due to a greater or less extent to
signs OF an impairment of foreign har-
vests. and many stories Of the kind in
variably heard on such occasions were
circulated concerning expected favorable
developments regarding the security mar
ket One Of these was to the effect that
the Hartman management had deter
mined 20 repeat In degree their action OF
a year ago and to declare an increased
dividend on Southern Pacific stock.
An enlargement of the dividend rate
on the United States Steel common shares
was talked Of, and another tale which
was of much more likely character was
that arrangements were slowly progress
ing for the taking over Of the Northern
PaCinCs equity in the Chicago. BUrlng-
ton and Quincy property by the Great
Northern Railway Company. The chief
reason why such a scheme has not been
worked out before, in3smUch as it is one
that IS eminently proper and desirable,
has been supposedly that it would have
20 be carried through in a very easy
money market, on account Of the large
amount Of money raising that would be
required. But 1t would be possible for the
Northern Pacific Company TO turn over
10 Tfrliugfpu Ia tho Great or4berr7