The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-14
FINANCIAL AND COMMERCIAL.
SArI RpAY, July IL


Beyond the weekly bank statement there
was really no definite news affecting the
stock market, and although certain general
Causes were manitertly operating 20 bring
about an advance in prices. the u~nexpect-
edly favorable character OF the bank return
admittedly shouldered a considerable por-
ton of the responsibility for the sharp rise
in values that occurred. There vas a
powerful suggestion yesterday in tho fact
that call money rates remained at a low
level despite the figures OF the usual Friday
estimates Of the bank return showing that
the bank surplus had been wiped out that
these figures were incorrect; and such in
dications we're much more than borne ont
to-day in tho return itself, disclosing a de-
crease in hank loans of SO, SSs. 100, a N in
creaSp in cash of Sl,O75, 700 and an Increase
In the surplus reserve of more than 8 s,o0O.O 900.
This exhibit was undoubtedly due in chief
TO the fact that the bank statement last
week clearly under reported the amount
of cash held by the banks in the sum Of
$40 900 900. It. also appears likely that
under the average system of compiling
the bank statement the large transfers OF
money from the banks to the Sub-Treasury
during the week we're not fully taken ac-
count of in to-dey's return. II is plain,
however, tina the local financial position
n stronger than has for some time been
supposed. but IL will probably not he until
the end of the month before the weekly
bank return will exhibit conditions Just
as they are, owing to the immense COM
plications arising from the return OF public
deposits to the Treasury and the paying
Oh by the Government Of the 4 per cent.
bonds that matured on July 1. Tempo
-.r,l.,I Loci haAk aaxx-a at,narin0 from
the circumstance that though the banks
have paid into the Treasury most IL not all
OF the public deposits that they we're TO
pay the Treasury has not diebursed all of
the money on the maturing bonds. owing
to the extraordinary s~lowness Of the hold
ers Of these bonds in presenting them for
redemption.
The notable feature of the stock market
to-day was the extent of the advances in
prices that occurred upon 40 small a volume
Of transactions. The market was steadily
strong throughout, buying Of stocks being
more active. naturally. after the bank re-
turn was published. and gains Of from one
to three and a half points were made in all
the leading issues. This afforded rather
convincing testimony as to a state OF affairs
tina has for a month back been more or
less evident that the market is in a sold
out" condition and that owing to the decided
enlargement Of the short interest arising
from the decline in prices that went on
throughout most of the week the market is
also heavily "oversold." Apart, however,
from the better feeling arising to-day on
account of the good bank statement finan-
cial sentiment was encouraged primarily
by a persistent impression that the report
of the Interstate Commerce Commission
regarding the Union Pacific-Southern Pa
cihc Railway management which it is said
will be made public tomorrow morning
will be OF a so-called mild" character, and
secondly because of the practically unani-
nous chorus Of dissent the country over
with the national Administrations meth
ods of corporation batting as last outlined
in ia prosecution of the American Tobacco
Company. So strong and general il this
disapproval that il seems as il a popular
halt has at last been called upon Mr.. Roose-
velt's attacks pom property interests.
The Improvement of sentiment in the
financial community is also distinctly
traceable to the bright prospect for the
couptry's crops, which now promise a full
average yield. The threshing returns from
the winter wheat section az they have been
received during the week show that a crop
mnCn larger IMAM wills commonly eStlnidten
a few weeks ago will be gathered and that
the quality of the grain is high. The weather,
too, during the week has been favorable
in every way TO the growth OF the leading
agricultural staples. The commercial
agencies in their weekly reports of business
affairs are much more optimistic regarding
the situation than they have been for a
long time. predicating in the main as the
reason therefor the general prevalence
of s~easouable weather. In a strict business
way the most important event OF the week
has been the official reduction in the price
OF copper. a move which was unuuestion-
ably a wise policy on the part of the great
copper producing companies. Naturally
consumers are somewhat slow in restocking
with the necessary supplies because they
wish 10 see il anv further reductions in the
price Of the product are likely to be made.
There are the best Of reasons, however,
for believing that no further reductions
will be made and that the present attitude
Of copper producers lie that they have al
ready behaved with ultra generosity in
view Of the known facts regarding the
demand for copper and the falling of the
world over in the Output of the metal.