The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-06-16
FINANCIAL AND COMMERCIAL.
SATURDAY, June is.

evenffor q half days business. and up TO
the time Of the appearance Of tho weekly
bank statement changes in, prices were in
slRniBcant and the activity OF the market
at q ioN ebb. After this pressure upon the
market increased and declines running to
. point in some of the active stocks we're
established. The fall was hardly due in
any wav TO the bank return. inasmuoh as
money market considerations or at least
rates for call money have not for a long
time boon a stock market factor. The
bank ,rSturn was, however, technically
u~nfavorable, inasmuch II IL indicated a
decrease in the surplus reserve OF 81. t85. 900,
which brought the total surplus reserve
Town 10 81. 5I4, 625, a low figure for the time
OF year. The loss in cash sustained by the
Clea ring House tanks during the week
wa So S3, 900. a little more than was es-
tinnted yesterday. All signs point. OF
course. 10 u further money loss by the banks
nett, week owing TO gold exports. Sterling
10 Paris to-day showed no iullying power
and in he market maintained its recent
high level. and in banking circles it was
oonsidered a foregone conclusion that I'M
less there was some striking change in the
situation exports of a considerable addi-
tionai quantity OF gold will be made on the
earliest available steamer. The demand
ot Paris for gold 10 just now the one salient
factor in the International financial mar
kets. Efforts are not wanting on the part
Of SPECTATORS for the decline to make it
appear that this indrawing Of money 10y
- H. - F---- -. f.r.--
of some untoward financial exigency. but
leading bankersheredeclare that no grounds
for 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
increased by the renewal Of political dis
turbances in Russia and by the action of the
Russian Government in withdrawing from
the European financial capitals and largely
from Paris a consid erable portion of its
money balances there, and Paris bankers
who have been support ing to a greater or
less extent the speculation in land values
In Egypt are no doubt desirous Of fortify-
ing their accounts against the time Of the
bali yearly financial settlement now draw
ing near, All the foreign markets to-day
W01t HlOI6 u lteS utpltSStAl' MS IIltg VETO
yesterday. discounts materially hardening
in London in view Of the shipment Of ST.
80. 009 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 Rail-
road system by the Rock Island and Union
Pacific companies and Of q passing Of the
control OF the road into the hands OF the
QnrE. leland NEUTRALITY-SUSPICIOUS. alnna n,UoaI
but little talk. aud the impression gener-
ally prevailed that although this action
Vas q more or less involuntary step on the
part Of the Union Pacific people, il WAS
stin as the result Of an agreement between
the Union Pacific and Rock Island COM
panies in view of the extreme probability
that proceedings were likely TO he soon
instituted 10y the Government with the
idea Of breaking the joint control of the
Alton system that has existed for several
years
While the weather locally during the week
has been such as 10 draw renewed attention
in the financial district TO the effect upon
the country : trade as a whole of the extreme
beckwardness of the season. the really
notable development of the week has been
the improvement in crop conditions in the
West, The price Of wheat has tended con-
stantly downward, and the familiar report
10 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 decidedly frightened.
The gross earnings of the railways are
keeping up s%plendidly. and our bankers are
much less concerned over the general money
situation than they we're a few months ago.
Time money for periods lasting beyond
January / next is still in good demand and
commands a high rate, and all money rates
have naturally strengthened under the
impulse of gold shipments and the prospect
of q temporary scarcity of funds around
the first Of next month. when the Govern
rnant will draw money from the banks for
the purpose of paying OF the 4 per cent.
national bonds then maturing. The stock
market Of the week has been almost entirely
professional and very little meaning is TO
be attached 10 such fluctuations in prices
as have been Witnessed. 4 word deserves
TO belsaid III regard to one matter that has
been the subject Of some adverse comment.
The reports Of the national banks of the
country under the Comptroller Of the Cur
rency's call for their condition on May 20
last showed an increase in the loans of
these banks for three months previously Of
nearly sos, 900, 900. Surprise has been Ak
pressed that such an increase in loans should
ave been shown in view Of the heavy liuui-
datioh of securities in Wall Street. What
has taken place, Of onurse, is a development
Of much the same character in the relations
Of the national banks of the country to
foreign lenders as often occurs locally be-
tween the national banks and the financial
Institutions not in the Clearing House.
Our bankers have taken over a large guam
tity Of loans formerly held abroad. That
the general financial position has been es-
sentially and immensely improved by the
decline in prices in the year thus far is a
matter that needs no r,of.