The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-03

s0J
News Developments to-day during bust
ness hours were In the main again decidedly
unfavorable to the security market. The
call money rate although IL did not touch
as high a point as IL did yesterday still re-
maine at an elevated range. Sterling ex-
~'change continued Its advancing tendency
and manifested a strength that plainly
enough made further gold exports a GER
tainty in case Of any material reduction
in local rates for the use Of money. and
after the close OF business announcement
was made Of the resumption Of exports in
the shape Of the shipment Of 81. 900 900 gold
TO Holland. All the foreign markets were
weak on general liquidation. The Imperial
Bank OF Germany made return that even
with due allowance for the complications
in the showing incident to the time OF tho
year was OF almost sensationally bad char
acter, exhibiting a loss in cash of $50, OOo, 900
and an increase In loans Of $40. 900, 900.
Stories published in some OF the morning
newspapers to the effect that the Govern
ment proposed sen6tng a feet Of battle
ships to the Pacific Coast in view Of possible
e~ventualities In the Japanese situation re-
ceived an official denial later in the day,
but the opinion was generally entertained
IN the inancia district nevertheless that
there was a certain amount Of basis for
these rumors. A Boston operator whose
famboyant proclamations have become a
wearisonfe feature OF the life Of the country
issued a statement assuming for himself all
the reeponsibility for the recent rise In secur-
ity prices and the circumstance natu-
rally induced a good deal Of selling Of
stocks. Tn Governments report OF the
condition OF cotton issued at noon was
much less fiattering than anybody had
supposed 1t would be. It was indeed of
seriously adverse nature. The Agricultural
Bureau at Washington declared that the
statistical average of the crop on June 20
was 70. a gain of but IA points over the
condition of a month ago, although the
weather during this period was commonly
thought to be almost ideally adapted to the
growth Of the staple. General expectation
was, in fact. that the average condition OF
the crop would De placed by the Govern
ment at rs OF 10. and the condition Of 70
announced to-day is "a points lower than
that OF the lowest state ever reported at
this season. Seven years ago when the
previous low record was made the cotton
crop Of the year turned out lO,UoO, 900 bales
upon an area planted to the crop 1000, 600
acres less than that planted this year.
Even upon this basis of calculation the
current indications are for a crop OF hardly
more than IL 500, 900 bales. and the price
of cotton, therefore, to-day as soon as the
report was published advanced So a bale.
Finally the grain markets were all again
exceedingly strong to-day upon poor har-
vesting returns from the winter wheat
section and more news of damage to the
spring wheat crop in the Northwest. IL
had been commonly supposed regarding
wheat, az in the case Of cotton, that the
weather during the month has been good
from an agricultural point Of view. but the
poor Government report to-day on cotton
tended to modify optimistic predictions
regarding the spring and winter wheat
reports that will be published on July 10.
The days stock market yielded moder-
ately under the weight of these adverse
factors. Quotations for the principal stocks
orened as a rule we'll below those last made
yesterday and frequently rallied during the
day. betokening the presence of n variety
Of efforts mad TO stimulate the market,
but they closed in the main at a lower level
than the opening figures and at prevailing
iOroOo hiVo'IA hhh poihl' ~ a N IlhdtUtT
OF common observation that the market
showed much greater strength than might
have been thought likely in view Of all the
influences that would logically nave brought
abou a general selling movement, and
support to the market of a concentrated
nature was plainly in evidence. The i'm
preston deepened that all this support
and the more or less unexplained advance
in the market for a week past had a definite
connection with the approach Of the time
when the shareholders Of the Union Pacific
Railroad system will have an opportunity
to subscribe to the SIS. 900. 600 convertible
bond issue recently announced by the man.
agement Of the company. To just the ex-
tent that the shareholders can be induced
to subscribe to the bonds the burdens of
the underwriting syndicate that has guaran-
teed the success Of the bond issue will be. Of
course, co~rrespondingly lightened,