The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-07-29

S75,000000 was anxious to make an ac-
tive market for the bonds by stimulat-
ing a speculation in the stock. Convic-
ton on this point was shaken in specu-
lative circles by the exploit ayowal Of
the head of the Hartman system that
the Southern Pacific dividend would
in no event exceed the six per cent
rate, while practically admitting the in
tention to raise the dividend from the
present five per cent. rate. Speculative
enthusiasm was dashed by this definite
outline of the future and wide spread
suspicion was engendered that the
market movement lacked the supposed
auspices of the controlling powers in
the properties.
What the stock market enjoyed Of.
reviewing influence beyond this episode
was largely due to the easing of the
money market, from the usual reflux
of funds into bank reserves following
the half yearly disbursements. The eff
feet of this on the. substantial invest
ment demand for securities has been
moderate and not unquestioned. The
bond market has remained apathetic
and prices have shown no marked i'm
provement. There has been some ad-
vance in prices of the short term rail
road notes in the market, on which the
rate of return is unusually high. AZ
bad impression was created abroad by
the practical failure Of the offering of
the Manchurian railroad loan, guaran-
teed BY the japanese government of
which less than half was applied for.
Some English financial critics were dis
+ posed to attribute the result in part
TO the overburdcn expense account Of
the japanese government for military
expenditures, but the general view Of
tie incident was that it was an index
OF the continued depression Of invest
ment demand and unrel eyed scarcity
Of capital. The sag Of British consols
10 near the low record was taken as
conflrmatory Of this view.
The easing tendency of the local
money market was not prevented by
some heavy syndicate payments for in
stalments due on UnJon Pacific and
| Atchison convertible bonds and An3eri-
can Telephone stock The recurrence
Of obligations OF this Kind Of subscrip-
items already made is a Characteristic
Of Tho present Investment situation and
there is a visto Of such payments to be
made at Intervals for many months in
the future. Capital is thus already he
spoken as it may accumulate. 1t is the
general conviction, also, that the pres
en- ease Of money on call and for the
shc rtcr periods on time, IS Of tempo
rary reliance and likely to be ended as
soon as the interior demand for cur
rency to move the crops sets in. The
inward movement of the foreign ex-
changes and the revived inducements
offered by the bank Of France to at
tract geld offer prospect of additional
modifying factors on the available
banking resources.
The condition in the metal market
remain unchanged and leave open the
problem of how far reaction may affect
them. In the copper market some ef-
feet was produced by reports of an
agreement between -tht Amalgematet
| Copper and the Rio Tinto companies tc
maintain the price of the metal but
buyers continued to hold off and this
stability of that market was left oper
for settlement, The strike in the Lake
Superior iron mines was pronounced by
iron trade authorities powerless to d.
much harm, owing tosstores or ore or
hand and also to the lessening demand
for iron. This argument took too mucl
| fer granted the coming contraction IL
the iron and steel trade to have any
very cheering effect on speculative sen
timent, The grain markets We're dis
turbed somewhat by reports of rus
damage in spring wheat and the cottor
market BY reports Of drouth, but conf
dence in favorable crop outcome wal
notmaterially impaired
The interest in the dispute between
North Carolina state authorities ant
the federal court over the enforcement
of the. state passenger fare law wa
made academic, the important phase o
that question from the standpoint 0
capital being the course of public opln
iol on the subject and of judicial opin
ions on its merits, rather than in posi-
BILE conflict Of authority over enforce
ment.