The Washington herald., 1907-06-03

New York. June During that portion
of last week preceding the Memorial Day
holiday, stock exchange sentiment was
perceptibly more depressed than il was az
any time previously in the year, even
though this was not accompanied with
any great increase in market activity or
any notable fall in prices. Later a some
what more cheerful feeling was evident,
but appeared 20 be caused for the most
part by recovering purchases Of stock by
spectators for the fall
Crop conditions we're at least no worse
than they had been, and the promise Of
an average harvest this fall was perhaps
a little brighter than it was a few weeks
ago. On the other hand, there were no
signs Of any Improvement in the invest
ment market or Of what Wall street calls
the buying power underneath the stock
market generally. The market lacked
snap and vigor and continually shifted
it's position in an uncertain way within a
narrow range. Undoubtedly the dark
skies and low temperatures experienced
locally did much to cloud the situation
from a financial point Of view.
Lnte season Affects Business.
In the presence Of climatic conditions 50
abnormal as to require in the great ma
jcrity OF homes and business Offices the
enforcement Of winter heating arrange
meuts there was a proof that appealed
to every one hat the weather this year
was decidedly against the stock market.
Il was obvious that such a state Of affairs
was not only injurious TO the crops. but
was initiating in a serious way against
the country's retail trade in many mer-
camille lines. In a business sense there
has been this year almost no spring, and
all Industries dependent for their exist
ence upon the conduct Of seasonable trade
have suffered thereby. The fear Of the
moment now is. Of course, that We are
likely TO be Ushered into midsummer
weather without any ceremony whatever,
which will again not be n good thing from
a business point Of view. and the indirect
results Of this are keenly felt by our rail
way companies and in many other COM
mercial WAYS. The meteorolOgists assert
as they always do at such times. that the
average amount Of heat is still being dis
tributed through a period covering several
months-that IS 10 say. that a cool sum-
mer Is making up IN a climatic sense
for a warm winter. But the point on
which meteorologists cannot assure US is
that warm winters and cool summers are
good for business and the crops, and It
remains TO be seen how far the making
up process, as il has thus far been carried
on, is likely TO affect these matters.
Rise in Price May Compensate.
As far as the crops are concerned, while
the disposition was at the end Of the
week, as stated, 10 regard the outlook
somewhat more optimisucally, it was SIN
rather commonly thought that the gov
ernment June crop report. TO be published
a week from to-day. will show that there
had been no large improvement in condi-
tions during the preceding month. It
seems TO be admitted now In the grain
trade that the damage done to the winter
wheat crop cannot be repaired. and that
the spring-wheat crop is at best a matter
of doubt No light can vet be thrown, of
course. upon the crop situation. and the
question how far the countTy's industries
as a whole will be benefited by the higher
prices for grain that now seem likely TO
be sustained and by the part played in
these advances by the shortage In crops
abroad, as we'll as here, Is more or less
complicated. The rise In prices will go
far to compensate the farmers for their
reduced harvests; but the inquiry must
remain unanswered as 10 whether the
country's foreign trade balance viii be
fav0rably or unfavorably affected. and
whether an agricultural deficiency in so
many countries may not lead to business
complications which will react unpleas-
antly upon the money and foreign eK-
change markets.
Business Conditions Abroad.
Observers have not been slow TO note
the curious parallel existing this year in
crop and business conditions in all the
worlds leading nations The spring has
been cold this year, not only in our own
country, but in England and the entire
continent Of Europe, and with the posi-
BILE exception Of damage from insect
pests. the grain fields abroad are suffering
from the same general causes as they are
In the United States. All over the world
at the present time, too. the investment
markets are heavy. Lord Rothschild in
England last week asked what could be
expected in these markets with the PTesi-
dent of the United States hammering the
railroads there with the English Parlia-
ment considering socialistic plans Of gov
eminent. and with the French legislative
assembly meditating the passage of a
drastic income-tax law. In England. since
the law passed at the behest of the labor
unions some years ago freeing these
unions from the responsibilities laid upon
then by the courts in the construction of
existing statutes made IN the famous Taft
Vale case there has been a vast increase
IN the bumptiousness of these labor Or
ganizations. so that a threatened strike
of the employees on railways In England
seems TO be a constant factor in the
British financial situation.
New Securities Depress Market,
Taking it all in ell there seemed 10 be
a more general admission in the financial
community last week than at any pre-
vlous time Of the fact that while the
speculative market for stocks might vi
brate up and down owing TO bear raids
and recoveries from an 'Oversold' condi-
ton. there could be no permanent and sus-
tanned rise in the price Of securities
until the bond market was in better shape
and there was a restoration Of the conf