The daily morning journal and courier., 1907-07-15
INVESTMENT INCREASE FAILED 10 MATERIAL 'ZE Last Week Saw Greater Strain on Money in
 Market. MORE GOLD SHIPPED Many Matured Government Bonds Not Presented for
 Redemption.

The week just past was marked by the occurrence of several events in con junction which constituted something s like a crisis in financial affairs and the, consequence was an upset of the or ganlzed speculative movement for a rise in prices and a sharp reaction. This movement was entered upon previous to the July list settlements and had the encouraging circumstances to go on that the supply of stocks in the market for some time previously had been very seanty, so that profess sional operations to force lower prices # had met with little success. It was & also hoped that with the disbursement T of an unprecedented sum in dividends and interest in July, the long dormant % investment demand would revive and medium be afforded for the diges- ton of speculative profits. The mar ket campaign was conducted in @ fam boyant style and by methods of news # paper advertising which kept i open to W suspicion of artificial manipulation to lift prices in the market. The incident < of the failure of the New York city bond offering previous to the first of July dashed the conf, ,dence in the early awakening of investment de- mand. The conveyance of some extra ordinary demands on the money mar Ket during the second week of July also gave warning of difficulties to be encountered in the carrying out of the speculative campaign. These warnings Were disregarded, however, and the market operations for the support and advancement of prices were carried on up to the very threshold of the re- ] quirements of July 10 on banking re- E sources. At that point there was an abrupt relapse, which served to dash the speculative interest in the market and to throw 1t back into condition pf dullness and feeble and uncertain Fluctuations. While the meeting of the July 10 requirements had this unset tling effect on the market commit nents previously made the passage of hat date Is viewed with relief, as the passing of a crisis no longer is the prospect.
 4 The known condition of the New Ycrk Clearing house banks the prev ous week made it evident that the events of last week must strain the available resources. It was not a sur- prise that the matured government bends were slow in appearing for re- remption and in fact, up to this time, es5 than one-half of the $36,O00,O0O out Star ding at the time of maturity have oeen presented for remeption. The withdrawal of 30,00O,O00 of government deposits from the banks on July 10 was nly partly offset, therefore, by the re- z emption operations. This tardiness in ringing into use so large a sum of vailable capital at time of practi- F al famine of capital and of onerous e1ms for use of money is one of the namolies of the present financial sltu- T ton. The money difficulties were ag- rayated by the resumption o the Par
 demand on New York for gold, which esulted in the shipment during the 7eek of $2,75000O to that point. The Lrther extent to which this movement night go is a matter of concern, in view the present banking position in New
 
 France to re-establish its condition 2 the average of recent years, there is considerable margin of recuperation et to be effected, compared with last ear It's gold holdings last week were till SS3 ISL GOO less than a year ago, hile it's loans were $51, ,157, 1000 greater ld it's note issues $85OOOO0O in excess
 those of year ago. In view of the op shortages abroad the great for gn banks are looking forward to the cessity of large payments for food uffs imported and are anxious to for V their reserves in preparation. For gn exchange in New York receded to- ards the end of the week under offer gs of finance bills in the process of awing on foreign credits by interna- 9ral bankers to lend in New York. lis process encounters opposition in pndon, where it has forced up dis unt rates. Rates for time loans in ew York also have risen materially,
 The publication of the governments port of condition of the cereal crops
 of July did not improve the feeling CT our own crop prospects. Winter OdL SIlUNENA 1GSS LllelAl LiAO V-AkNSNSu
 provement during June and the de-
 ioration in spring wheat was dis
 pcintment The effect of the low per ltage of condition of the corn crop
 $ partly offset by the increase in seage and also by the consideration at the lateness of the crop operated ainst the condition showing and left apce for improvement as it natures.
 oh importance is attached to the
 stponement of frosts in the fall for
 final outcome of the corn crop.
 tome agitation in the copper trade
 ulted from the marking down of the zzsz ce some three cents a pound by the
 at producers, and the effect on the
 hheld demand for the metal is stu
 with great interest. The placing
 orders at the new price Is reported
 be moderate, and some anxiety is