Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-02
Record Low Sales Marked the
Weeks Dealings.
NO FAILURES RESULTED
Hurried Price Movements Continued
to Week End.
MYSTERY OVER LIQUIDATION
Inadequate Supply of Liquid Capital
to Meet the Existing Requirements.
London Discounts Declined.

London Discounts Declined.
NEW YORK, June 1.-Priccs of stocks
continued today the saegins movement
which set in during the session of yeStcr-
day. The movement seemed due, much
as to anything. to the conviction that no
substantial demand for securities had re-
suited from the better sentiment said to
Ic produced by President Rooscvelt's Dec
GRAFTON day speech. In fact, the tone of
comment of some of the influential financial
reviews induced some revision of opinion
In stock-markct circles to the effects to
b. expected from the address. Some of the
early selling also in anticipation OF
the unfavorable character of the bank
statement.
The large loan expansion shown by the
banks was the chief factor iii causing the
reduction of the surplus item. Preparations
for the month-end requirements and the
added obligation of payment of 10 per
cent inStallmynt of subscriptions for
St Paul stock were the influences response
Bile for the loan expansion. The gain of
nearly million In the cash item was In
comparison with an expected decrease.
discounts in London declined with the
turn OF the month. but foreign exchange
here held steady, and tie question of
further sold exports next week is left open.
The question Of a withdrawal of govern
ment deposits from the banks during June.
which provides for the July LIST redemption
OF about $in.Wu,"NO t per cent bonds, was
also undecided by announcement from
the Treasury Department. Some of the
doubtful speculative tone was due TO the
contents OF the mercantile reviews pointing
out slow distribution of spring and sum
m"r goods, and operations for the fall and
winter more conservative.
Additions to the improved showing of net
earnings for April were made in reports by
the Union Pacific and the Louisville and
Nashville. There was some covering by
shorts after the appearance of the bank
statement, but the resulting rallies
feeble and not well held. Total sales of
bonds par value, $4,000.
A Rapid Fall in Prices.
The week in the stock market opened
with rapid fan in prices which forced
many stocks to a lower level than was
touched in the panicky break of March.
The subsequent dealings showed the effect
OF the relief caused by this wedding out of
weak accounts in the market. and of the
needs of the outstanding short interest
punt up IN the course of the decline. Some
Improvement of speculative sentiment ac-
coinpamed this turn in the course of prices.
and the professional operators were dis
posed to draw favorable conclusions of the
technical situation from the action of
stocks.
burst Of activity and a Hurried price
movement. such as occurred ON Monday, is
regarded as evidence of the CuImina ton of
q movement in one direction. according to
CCeptsd tradition. The fact that the dam
aging shTinkagr in valuations on Monday
Ctused 40 failure was an element in the
later reinsurance of the market. During
the progress Of the decline great apprehen-
sion was felt FOR such consequences. The
source and the motives of the heavy liquidt-
ton remained as much mystery and an
ChJect of anxious curiosity as in March.
This curiosity was unSatiSfied so far a. it
sought the identity of the individuals con-
ccEned IN the unloading of stocks.
The general motives prompting the sell
ing however were discernibe in the stu
alton of the supply of liquid capital and
the urgent demand for it. Il was under
stood that large obligations incurred for
subscriptions to new capital issues were
being met with difficulty, owing to the
paralysis of the public demand for railroad
securities and the conditions in the money
market. Liquidation OF existing holdings
t. provide resources was a forced require
ment. 1t was suspected also that resources
were sought to meet calls upon various
capitalists for the requirements of the cor
poIations which did not appear in immedi-
ate capital issues.
Private Loans Order of the Day
Private loans and note issues are the order
of the day among corporations to defray
expenses Of urgent work of Improvement
and extensions to meet the pressure on pro-
duCtion in all lines This tendency extends
To the field Of mining and of various other
enterprises In which capital has extended
itself widely in the late period of expansion
Powerful capitalists have been looked to for
the use OF their resources and credit to pro-
tect these requirements of properties in
which they were dominant or controlling
powers. Reports of large personal loans
by individuals of this class have reached
the Wall street community for considera-
ton. The inference drawn is that much of
the heavy liquidation which has appeared in
the open market is traceable TO such
sources.
Inadequate supply of liquid capital to
meet the existing requirements is the main
fact still dcduciblc from these manifesto
tiOns and the necessity for increasing the
attraction To be offered to capital in order
- draw it into the desired employment.
The Inauguration of the export movement
Of gold to France by engagements Tuesday
and Wednesday was not calculated to alIav
apprehension over this condition. While
Immediate conditions I'm the domestic money
markets are easy. for call loans and for
time loans FOR the shorter periods these
conditions are looked upon as partly iIlu-
spTy owing to the high rates cCruUrati0nS
ar Obliged TO pay fer loans and the diff
Guilty of marketing new issues of securities.
The persistent demand Of the Paris money
market for gold is regarded as a symptom
OF the feeling of uncertainty in that great
center o. capital over the financial outlook
An alienation Of the sustained hardness of
the money market at the French canital
Is regarded as a necessary preliminary to
the permanent bcttermcnt OF the general
prosirat'"n Of demand for securities, which
is world wide.
Presidents Address Gratifying.
The later Improvement in New York is
attributed. in an important degree to the
contents of President Ruoscvclt's address
on Decoration day at Indianapolis. Wall
street has interpreted that address as an
appeal against extremes in the control of
capitals. functions which would check the
exercise OF those functions. The financial
community holds the conviction that the
prospect of governmental restriction on
corporations has been an important infu-
enCe in ParalyZing the demand for Securi-
ties. Importance was given in proper
ton to IN" stress laid 10y the chief magis-
tratc on the necessity OF allowing such re-
turn to capital as would incite it to in
ves:meut in such utilities as are essen