The Washington herald., 1907-07-03
WEAKNESS IN STOCKS
Developments UnfavOrabletO
Security Market.
COTTON REPORT IS GLOOMY
Condition of Crop 3 1-2 Points Lower
than Ever Reported at This Sea-
sOn-WheHt Prospects Also show
Smaller Gain than Expected-FOr-
eign Markets Are Weak.

New York, July New developments
to-day were in the main again decidedly
unfavorable to the security market. The
call money rate, although it did not touch
as high a point as ii did yesterday, still
remained at an elevated range. Sterling
exchange continued its advancing ten
dency and manifested a strength that
plainly enough made further gold cx-
ports certainty 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 resump-
tion Of exports in the shape Of the ship
ment Of 100000 gold TO Holland. All
the foreign markets were weak on gen.
eral liquidation.
The Imperial Bank Of Germany made
a return that even with due allowance
for the complications in the showing in
cident 20 the time of the year was al
most sensationally bad character, exhib-
ting a loss in cash Of $56.@0,N0 aud an
increase in loans Of $900e,O00
Stories published IN some Of the morn
ing papers to the effect that the govern
ment proposed sending a feet Of battle
ships 20 the Paci.c Coast in view Of pos
ElllD tNEilLultla4-1 ia tA4@ NfNEAtAANeN AArN'rf
ton received an official denial later in
the day; but the opinion was generally
entertained IN the financial district. never
theless. that there was a certain amount
Of basis for these rumors..
Lawson Agnin to the Front.
A Boston operator whose famboyant
proclamations have become a wearisome
feature of the life Of the country issued a
statement. assuming for himself all the
responsibility for the recent rise in Sc
curity prices. and the circumstances nat
urally induced a good deal of selling Of
stock
The government report of conditions Of
cotton, issued at noon, was much less
fattering than anybody had supposed il
would be. It was. indeed, Of seriously
adverse nature. The agricultural bureau
at Washington declared that the statis-
teal average Of the crop on June 26 and
e showed a gain Of but II points over
the condition of a month ago, although
the weather during this period was COM
monty thought TO be almost ideally
adapted to the growth Of the staple.
General exceptions was in fact that the
average condition Of the crop would be
placed by the government AT 70 or 76:
day Is 81 points lower than that Of the
lowest state ever reported at this sea
son. Seven years ago. when the previ-
Gus low record was made, the cotton
crop Of the year turned out 10000 900 bales
upon an area planted TO the crop 700, 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 n,5g0,CC0 bales. and the
prices of cotton, therefore, to-day, as
soon as the report was published. ad-
YanCed s. a bale.
Finally the grain markets were all ex-
ceedinglv strong again to-day upon poor
harvesting returns from the winter wheat
sections. and more news Of damage to
the spring wheat crop in the Northwest
It had been commonly supposed regard
ing wheat. as 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 win
ter wheat reports that will be published
on the tenth Of the month.
Stocks Close with Loss.
The days stock market yielded moder-
ately under the weight of these adverse
factors. Quotations for the principal
stocks opened as Il rule well below these
last Monday and frequently rallied dur
ing the day, betokening the presence Of
a variety of efforts made to stimulate the
market. but they closed in the main at
a lower level than the opening figures,
and at prevailing losses greater than a
point
It was a matter of common observa-
ton that the market showed much
greater strength than might have been
thought likely in view Of all the in
fuences that would logically have brought
about 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 ad-
vance in the market for a week past, had
q 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
Sl5,0000 600 convertible bond issue recently
announced by the management of the
company. To just the extent that the
shareholders can be induced to subscribe
10 the bonds the burdens Of the under
writing syndicate that has guaranteed the
success Of the bond issue VIII be. of
course, CorTespOndingly lightened.