The daily morning journal and courier., 1907-07-01
one side to the market and expect ma terlally higher prices.
General ReyIem of the situatlon.

General Review of the Situation.
 An Associated Press review of the market last night says:
 It is expected that the large sums to be disbursed in profits during the com ing month will seek re-investment In securities, and it is to anticipate this demand that professional operators have been taking on stocks and putting up prices Another recognized object of the movement is the improvement of valuations of security holdings which will appear in the semi-annual bank note balance sheets soon to be made up of numerous corporations and finan- cial institutions. There is a general conviction that large amounts of secur- ities are now held which were taken over as a matter of necessity during the week operated for the market for tho protection of values and to avert demoralzation of widespread harm. It is expected that holdings of this kind will have to be digested in the course of any considerable advance in prices. The fact that the attempt has been undertaken in face of these dis advantages is proof of the growth of confidence that the troubles of the market are mostly of the past.
 It Is estimated that the amount to be dlsbursed in dividends and interest in New York during the coming month will reach total of $1S3, ,000, 000
 This Is a larger amount than was ever before distributed at this time. The figures are a testimony to the high degree of business prosperity that Is still maintained and shows how rapid rate of recuperation of capital defici- encies is possible by a slowing down of the rate of absorption, Figures of rail- was capitalization in the last few years show how rapid has been the rate of absorption, the figures not only rising prodigiously each year since 1899 but the ratio of increase for each year making successive bounds up to the scramble which developed among the railroads for capital resources towards the close of last year The crisis which resulted was aggravated by the efforts of the great destruction of capital caused by the Boer war, the Russo Japanese war and the San Francisco earthquake. These enormous capital requirements fell with most weight on the British and European supplies and reduced the resources available to meet the demands of the American railroads in that quarter. Much attention has ss--t g.Ai l. ss-.. view of the prospects for foreign capt- tai flowing Into American enterprises made by the London Statist in an tn- troduction to it's American railroads supplement-. The conclusion of that au- thority is that the quantity of Eu- ropean capital available for investment is now likely to increase, with the pas sing of the influence of war loans, and that the profitable opportunities offer ed in American railroad enterprises are likely to attract it, but not without a. rate of return higher than has been necessary in times past.
 Banking authorities in New York arc of the opinion that the demands for use of liquid capital in active business will decline during the coming fall. They believe that the retrenehment will be of special effect on the side of imports of merchandise, which have been run ming at so high an excess over all pre- vious records as to account, In large part, for the course of the International exchanges and the export movement of gold. It is now evident that foreign requirements for foodstuffs will be un- Fusually heavy this year owing to crop shortages abroad, and confidence has become established that this country will have surplus supplies available which can be marketed on profitable terms. Tn course of the international Imove strongly in favor of this coun- try. The prospect of a slowing down of trade seems to be regarded with equanimity from the financial stand- point. as 1t is felt that the high pres- sure at which activity had risen was overrunning the capital available and was being conducted at an extravagant cost which was threatening the integ- lrity of the net return.
 There is perceptible subsistence of anxiety over the results to the general situation of the agitation against rail- road corporations, based partly upon an assumption that the strength of the agitation itself Is diminishing. The pronounced failure of the New York city bond offering points to universal causes back of the railroads difficult ties in obtaining capital, which dinin- ishes the relative importance of the ag- itation against the railroads. The in- cident also served to dash the feeling of confidence over the clearing up of the investment situation.