The Washington herald., 1907-06-24
MARKET IS WAITING
State Of Equilibrium Be-
lieved to Be Now at Hand.
MUCH GOLD TO GO ABROAD
Demands of Foreign Countries VIII
Probably Result in Tightening Of
Money Rates-RailrOads stiIi Find
Il Hard TO BorrOw-Some Features
OF the Past Week on Exchange.

New York, June 25.-The average price
of the active stocks dealt in on the stock
exchange huctuated last week within a
range that at no time exceeded half q
point. and the animation Of the market
tended constantly 10 become less and less,
so that on Thursday the turnover OF
stocks for a full days business was the
smallest Of the year 20 date, and the mar
let sank TO q condition Of almost abso-
lutte torpor AS might be imagined from
the foregoing statement, the security
market of the week was without any def
inite tendency and developed no notable
features, and fluctuations in II were solely
those produced by the speculations OF
habituaI operators, most Of whom changed
their position" regarding the market
several times in the course Of each day,
and at the last almost entirely ceased
their trading.
All this emphasizes the diagnosis Of the
situation that has for some time been
mere or less generally made. that the
stock market has arrived at a state Of
equilibrium, and is waiting for the de-
velopment Of some new motive power TO
turn its course in either an upward or a
downward direction. Il must be conceded
that security prices were in the main
heavy during the week. and the pessi-
mism regarding the future was increased
on the part Of the professional specuia-
tive element. Most Of the members Of
this party have been hostile 20 the mar
ket for a long time. and have only been
deferred n recent weeks from making
violent attacks upon values by the fear
to which one event after the other lent
considerable justification, that it might be
difficult for them 70 recover the stocks
thus specuIauvely sold.
Hard for Roads TO Borrow.
James J. Hi said during the week. and
said truly. that the railway companies
were finding it as hard as ever TO borrow
money. and although in one or two in
stances prices OF bonds have risen be
cause of an especial recognition Of the
facr that the valuation Of the securities
in question had been depressed TO a point
absurdly low the bond market as a
whole was almost destitute Of life. This
Is not a pleasant condition Of affairs
but !t IS 20 be remembered on the other
hand that a lack Of buyers in the market
both for stocks and bonds is always wit
messed ar the end Of a long depression in
prices II takes people time TO get their
bearings under such circumstances and
TO make up their minds 10 again invest
money, while the speculative market it.
self always suffers at such times from a
temporary annihlIstion OF the purchasing
power formerly exercised in a vigorous
way by many large market operators
who fnd themselves at last badly Grip
pied financially If not utterly prostrate.
Again. people who would under or
dinary circumstances be bond buyers at
this time are investing in the more at
tractive railway short-time note issues.
on one point. al any rate, il IS perfectly
safe % draw conclusions. The stock mar
ket NAV remain in its present balanced
state for a prolonged period. perhaps
even until after the close OF the next
Presidential election but some time it
VII change its existing condition Of halt
and iuacti5u and move in determined
fashion either up or down
Tightening of Money Rate.
All the great foreign national banks
made statements last week showing a
gratifying enlargement Of their proper
ton Of reserve held against liabilities.
and yet these reserves are still low for
the time Of year and should naturally re-
Ceivs further strengthening. The focusing
point of interest in all these CirCum-
stances lies temporarily in the midyear
foreign financial settlements now so near
az hand and there is no doubt that one
urgent reason for the caution recently
shown by bankers here regarding new
financial ventures has been a desire %
keep themselves strong pending the semi
annual adjustment Of balances all the
world over on July l.
II this period passes quietly, there viii
be a feeling Of relief everywhere. and the
security market should not fail 10 reflect
tire fact. Il may be said thar the best
Judgment Of the best people is that the
settlements viii pass in a satisfactory
manner. but preparations Tor them have
unquestiCuabIy been the direct cause OF
the large gold exports from our country,
and bankers here seem 70 think that We
VIII continue 20 make metal remitt8nceg
abroad until q rise In money rates here
fg7bids. on the face Of things. it looks
as if such q tightening OF money was not
very far Of we have exported 10 date
this year, and all within the last few
weeks. over Slg.G0Cl2 and our surplus
bank reserve now stands at low figures
for the time Of year. Obviously, We can
not spare further great amount Of gold
70 Europe On such easy terms as in the
last few weeks.
Would open Gold Hoards.
It IS, Of course always found that when
money rates advance invisible boards OF
money are tapped in q surprising way
by the occurrence, and there IS no doubt
that right at the present time a call
money rate Of to per cent would bring
o-t largely increased offerings Of funds
from interior Institutions. besides check
ing decidedly. If not altogether stopping.
the g0ld-expCrt movement. II It should
turn out too. that In spite Of al the un-
favorable weather conditions earlier ia the
season our crops this year are likely 90
be Of average quantity. SO that we shall
be able J0 sell their surplus abroad az
high prices, owing 90 the shortage in the
foreign larrosts. an immense help viii be
given thereby 10 our entire financial situa-
ton. Wlle TIE wheat market has been a
little stronger during the week. this has
been apparently chiefly due to the natural
recovery of ire market from a heavily
0rersClI condition.