The Washington herald., 1907-06-16

New York. June 15.-Dullness and heavi
ness were again to-day the chaTacteristi,
features Of the security market. The
dealings IN stocks were small even fol
a half days business, and up TO the
time Of appearance Of the weekly bank
statement changes in prices were insig-
nifcant and the activity Of the market al
low ebb, After this pressure upon the
market increased declines running tC
a point in some Of the active stocks were
established.
The fall was hardly due in any way to
the bank return, inasmuch as money
market considerations, or, at least. rates
for call money. have not fer a long time
been a stock market factor. The bank
return was. however, technically unfavor-
able. inasmUCh as il indicated a decrease
IN the surplus reserve Of S1465.9l0 which
brought the total surplus reserve down
20 4,5146g5. q low figure for the time Of
year.
The loss in cash sustained by the clear
ing house banks during the week was
S2.5S3000, q little more than was estimated
yesterday. All signs point, Of course. to
a further money loss by the banks next
week swing TO gold exports.
Sterling I'm Paris to-day showed no
rallying power and in this market main
tanned its recent high level And in
banking circles II was considered a fore
gon1 conclusion that unless there was
some striking change in the situation eX-
ports Of a considerably additional guam
tity Of gold will be made on the earliest
available steamer.
Paris Demands Gold.
The demand of Paris for gold is just
now the one salient factor in the inter
national financial markets. Efforts are
not wanting on the part Of spectators
for the decline 20 make it appear that
this drawing Of money by Paris is due 10
fears entertained in France Of some un-
toward financial exigency; hut leading
bankers here declare that no grounds
fer these allegations exist. The Bank of
France advanced money freely 10 the rest
OF the world all during the winter
months. and is now anxious to build up
its gold reserve.
Such desires have been naturally in
creased by the renewal Of political dis
tUrbance in Russia and by the action Of
the Russian government in Withdrawing
from the European financial capitals and
largely from Paris of a considerable p0r-
ton Of its money balances there. and
Paris bankers who have been supporting
20 q greater or less extent the speculation
in land values in Egypt are no doubt de-
sir0us Of fortitying their accounts against
the time of the half-yearly financial set
tlement now drawing near.
All the foreign markets to-day were
more or less depressed. as they were yes
terday, discounts materially hardening in
London, in view Of the shipment of
a.-5100o gold from London 10 Egypt
The news made public this morning Of
the abolition Of the joint control formerly
exercised over the Chicago and Alton
Railroad system by the Rock Island and
Union Pacific companies. and of a pas
sage Of the control of the road into the
hands of the Rock Island management. /
alone caused but little talk, and the i'm
preston generally prevailed that although
this action was more or less inv0luu-
tary step on the part of Union Pacific
people, II was still. as the result of an
agreement between the Union Pacific and
Rock Island companies, i'm view OF the ey-
treme probability that proceedings were
likely 90 be soon instituted by the gov
eminent with the idea Of breaking the
Joint control of the Alton system that has /
existed for several years.
Gron GftunfEo-, Tr,proroz
While the weather locally during the F.
week has been such as TO draw renewed /
attention in the financial district to the /
effect on the country's trade. as a whole. /
Of the extreme backwardness Of the sea /
Son. the really good development of the /
week has been the improvement in crop /
conditions in the West The price of I
wheat has tended constantly downward. /
and the familiar report is now heard that /
winter wheat is turning out better than
was expected. while there is little doubt /
that prospects for the spring-wheat crop |
have been decidedly frightened
The gross earnings of the railways are
keeping up splendidly. and 0ur bankers
are much less concerned over the general /
money situation than they We're q few
months ago. Time money for periods /
lasting beyond January / next is still i'm /
good demand and commands a high rate.
and all money rates have naturally /.
strengthened under the impulse Of gold .
shipment and the prospect Of tenn
porary scarcity of funds around the first
Of next month. when the government
viii draw money from the banks for the
purpose Of paying of the per cent
bonds then maturing.
The stock market Of the week has
been almost utterly professional. and
very little meaning is TO be attached to
such fluctuations in prices as have been
4 word deserves to be said
In regard to one matter that has been
the subject Of some adverse comment
The reports Of the national banks Of
the country on May 20 last showed an
Increase in loans Of these banks for three
months previously of nearly Sa5O00O00 /
Surprise has been expressed that such /
an increase in loans should have been
shown, i'm view Of the heavy liquidation
Of securities in Wall street What has
taken place. Of course. is d development
Of much the same character in the rela-
lions Of the national banks Of the country /
to foreign lenders as often occurs To-
2aly between the national banks and the
financial institutions not in the clearing
house. Our bankers have taken over a
arge quantity Of loans formerly held
abroad
That the general financial position has
been essentially and immensely improved
1y the decline in prices in the year thus
ar IS a matter that needs no proof