Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-05
1t Was a Dull Day With a Down.
ward Tendency.
BANK STATEMENT WAS BAD
Has Been an Irregular Advance
Through the Week.
UNION PACIFIC LED THE LIST
Outlook is Decidedly Mixed and Puz-
zles Financiers-Crop Prospects
Are Barely Encouraging.
UNION PACIFIC LED THE LIST

dCnce of forces of depression in operation
against which desultOry resistance was
offered The opening declines were gener-
ally recovered at one time, but the bank
statement forced the market down again.
Trading was not active or important at any
time The showing of the banks was COM
plicatcd by the inclusion of the figures OF
a new member of the clearing house, and
this was held to account for large part of
the increase in loans and deposits. The
decrease in cash. however, was somewhat
larger than expected, owing to some outgo
to Canada. The frmer tone of the money
market toward the end of the week con-
firms the poorer showing of the banks.
The fact that Union Pacific continued
dictionary today was against the market,
and the substitution of Reading for a sus-
tanning force proved inadequate Yester-
days poor returns of net earnings by the
Hartman Pacific, New York Central and
Southern railway received further discus
sion, and We're not helpful factor to the
market. The report that most of New
York Centrals heavy increase in operating
expenses for the quarter was found in the
pay roll negatived the assumption that
special outlay for improvements was re-
sponsible for the showing, and gave it in
creased influence index of general
conditions. Reports from the wheat coun-
try of weather conditions revived the in
fiuence of the uneasy feeling over the crop
prospects. The last prices were In the
neghborhood of the lowest. The tone of
the bond market also was heavy. Total
sales of bonds par value $S9S,OOO.
Review of the Week.
There has been an irregular advance in
prices of stocks this week. largely due to
the sympathetic effect of few special
movements.
The most conspicuous of these was in
Union Pacific, in which a large proportion
of the total dealings of the week was con-
gested. The activity and strength of this
stock had been accompanied by flood of
rumors, none OF them verified and many
of them conflicting. The absorption of the
stock has been imposing. nevertheless, and
has had an influence on sentiment, in spite
of the confusion of the rumors to account
for the movement, which indicated the
highly speculative character of large opera
tons in the stock. Another special center
of strength has been in the copper indus
trials, including the smelling stocks This
was accounted for by the developments in
the copper trade violent rebound in the
price of copper in London serving to indi-
cate a manipulative origin for the recent
depression of the metal in that market.
Opinions continue much mixed over the
more general conditions bearing the
stock market outlook and the occurrences
of the week to throw light on the situation
were somewhat contradictory. Confidence
is growing in the money situation, both
here and abroad Even in Paris the ten
money market and London has been able
to meet the requirements for repayment of
previously acquired obligations to Paris
without interrupting the relaxing tendency
of it's own market. In Berlin the very
large applications for the new German and
Prussian loans, which were offered in that
market have been accepted as an index
of growing resources of capital available
in that market.
Foreign Money Quiet.
The weekly reports of the three great
foreign banks reflected the heavy require
ments incident to the May l settlements.
and the fact that the money markets there
remained tranquil in spite of these burdens
had reassuring effect There was slight
hardening in the New York call money rate
with the turn of the month and with some
special demands for banking resources, and
here also the moderate effect of these de-
mands was regarded as a satisfactory ind-
cation of conditions
On the side of railroad borrowings there
remains a discrepancy in the interest rates.
The most important event of the week in
this field was the announcement by the
Atchison directors of an issue of S26,OOO,OOO
Of convertible bonds to be offered to stock
holders at par. The interest rate on the
new issue Is fixed at per cent, while
previous convertible bond issues subscribed
for by stockholders at par have borne A
per cent. The effect was to depress the
old issues and to arouse fears of disloca-
ton of existing values all through the bond
market.
The confidence in a betterment in the
money situation Is based. to some extent,
on the prospect of government financial
operations The deposits of public funds
in national banks, the refunding and re-
demption operations of our own treasury
have played large part in the relaxation
OF money markets already accomplished.
and additional effect is looked for from the
completion Of the retirement of the gov
eminent per cents OF 1907. which Is to be
I,,I,r rk,n dow bat rnlyc
for similar good effects from the resump-
ton Of the sinking fund provisions for re-
duction of the British debt, foreshaoowed
in the budget statement of the chancellor
of the eXchequer.
General Business Conditions.
The expectation persists also that a slack
ening of trade activity is to diminish to
some extent the activity of the demand
for money. The balancing of effects on
general conditions which may be the net
results of the changes thus involved offers
the real ground Of obscurity in The present
outlook The feeling of perplexity was
illustrated in the non-committal reception
given to the quarterly report of the United
States Steel earnings. Although the quar-
ter's earnings and the tonnage of I'M
filled orders on hand showed some
pected decline from the previous quarter.
the fact that they stood at record for
the first quarter of any year was accepted
as conclusive of the sustained conditions
OF prosperity in that basic industry. The
element OF doubt lies in the question how
far this showing is due to execution of
orders growing out of previous conditions
before the difficulties of the railroads in
securing capital for new projects threw
cloud over the future. Reports from the
interior by railroad traffic officials intimate
that there is some hesitation in continuing
the enlargement and improvement of
plants and some Discrimination by bankers
10 countenance such measures. This indi-
Gates some extension of the forces of
contraction from railroad works to other
branches of production.
Wheat Crop Prospects.
The progress toward the critical season
for the winter wheat crop has made the
stock market growingly sensitive to that
influence. Conditions in the winter wheat
region were considered to be improved
by rains early in the week. The later
strength in the wheat market was ascribed
In part to bad conditions of foreign crops
as well as our own, while consideration
of the large proportion of our last wears