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
II Hard TO BOrrow-some Features
of the Past Week on Exchange.

New York, June 23.-The average price
Of the active stocks dealt in on the stock
exchange fluctuated last week within
range that at no time exceeded half
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 to date. and the mar
ket sank 70 a condition of almost abso-
lutte torpor. AS might be imagined from
the foregoing statement, the security
market of the week was without any def
mite tendency and developed no notable
features, and fluctuations in il were solely
those produced by the speculatOns Of
habitual 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
more or less generally made, that the
stock market has arrived at a state Of
tlu-4lb A44Alf anu II n AaltA6 ADt baAp N-
yelopment Of some new motive power 10
turn its course in either an upward or a
downward direction. II 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 specula-
tive element Most Of the members Of
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 to recover the stocks
thus speculatively sold.
Hard for Roads TO Borrow.
James J. Hill 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
fact that the valuation Of the securities
in question had been depressed to q point
absurdIv low the bond market as
whole was almost destitute Of life. This
Is not a pleasant condition Of affairs,
but It is to be remembered on the other
hand that a lack Of buyers in the market
both for stocks and bonds is always wit
messed al the end Of a long depression in
prices It takes people time TO get their
bearings under such circumstances and
10 make up their minds to again invest
money. while the speculative market #
self always suffers at such times from a
temporary anuihilation Of the purchasing
power formerly exercised in a vigorous
way by many large market operators
who find themselves at last badly Grip
pied financially If not utterly PROSTATE.
Again people who would under or
binary circumstances be bond buyers at
this time are investing in the more at
tractive railway shOrt-time note issues,
On one point, at any rate, it is perfectly
safe 20 draw conclusions. The stock mar
ket may 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
VIII change its existing condition Of halt
and inactiOn 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
tlon Of reserve held against liabilities,
and yet these reserves are still low for
the time Of year and should naturally re-
ceive further strengthening. The focusing |
point Of interest in all these circUm-
stances lies temporarily in the midyear
foreign financial settlements now so near
at 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 10
keep themselves strong pending the semi
annual adjustment Of balances all the
world over on July 1.
II this period passes quietly, there will
be a feeling Of relief everywhere. and the /
security market should not fail to reflect /
the fact. Il may be said that the best /
judgment Of the best people is that the /
settlements viii pass in a satisfactory /
manner, but preparations for them have /
unquestonably been the direct cause OF 4
the large gold exports from our country, /
and bankers here seem to think that we /
viii continue to make metal renlittancee |
abroad until a rise in money rates here !
fOrbids On the face Of things. il looks !
as If such a tightening Of money was not /
very far off. We have exported 10 date 4
this year. and ali within the last few
weeks. over S1900Oc1. and our surplus I.
bank reserve now stands at low figures
for the time of year. Obviously, we can
not spare further a great amount Of gold
10 Europe on such easy terms as in the
last few weeks.
would Open Gold HOaFds.
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 20 6 per cent would bring
out largely increased offerings Of funds
from interior Institutions besides cheek
ing decidedly, if not altogether stopping.
the gold-CXpOTt movement II il should
turn ont. too. that in spite Of all the un-
favorable weather conditions earlier in the
season our crops this year are likely 20
be Of average quantity. so that we shall
be able to sell their surplus abroad at
high prices. owing 70 the shortage in the
foreign narvests an immense help will be
given thereby To our entire financial situa-
tiOn. While the wheat market has been a
little stronger during the week, this has
been apparently chiefly due TO the natural