The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-02

MONDAY, July

to-day . Is per cent, q higher level than
that touched at the corresponding period
OF a,Sy year since the troublous scason OF
1898; n rise in sterling exchange here and
a fall n sterling in Paris to points that
despite IT, advanoe in call money locally
led to ne gotiations for the resumption Of gold
exports to France on Thursdays steamer,
these arrangements being also sccsompa-
MED by an active bidding for gold for Paris
account In the English market; q notable
advance In the price Of wheat due in large
part to the receipt Of u~nfavorsble crop news
from the Northwest; a further rise In the
price OF cotton caused by predictions that
the Government report IN the condition
OF the crop to be published tomorrow
would show that the state Of the crop had
not improved as much during the month
Of june as has hitherto been supposed,
and the announcement OF the failure of
an old and well known banking house in
Baltimore were developments that were
received to-day with apparent enthusiasm
by tho security market and resulted in
more active buying Of stocks and the estab-
lishment OF larger gains in prices than have
been Witnessed on any day since the recent
upward tendency in the market became
visible. IL would be idle to affect ignorance
Of the fact that in all conservative quarters
and throughout Wall Street generally the
advance in prices to-day was regarded
as being due only to out and out manipu-
lative effort directed against the large and
hitherto tubborn speculative interest for
the decline in the market hat has been
lately created. So far from there being
any Indications OF buying OF stocks by
commission houses liquidation Of holdings
by these houses was a salient feature of
business. The sustained character Of the
days advance, however, and indications
that 1t was receiving the support OF one
or two large financial powers led to a
general expression Of feeling on the part
Of experienced observers that the rising
movement had not yet eliminated, but
added to this was a necessary corollary
conclusion that the market was being de-
prived Of one Of Its greatest echnical quail
tiles OF strengththrough the extinguishment
Of contracts for the fall that was being
enforced. The periods OF greatest activity
In the market to-day we're in the opening
and closing hours OF the Stock Exchange
sessions, and although in the interim the
trading sank to a relatively small volume
this falling away in dealings was not ac-
c~ompanied with any signs whatever of
market weakness.
Every one in the financial district to-day
recogni zed that the rise in the price Of call
money was solely brought about by the
necessities incident TO the July l disburse-
ments and that presumably the high figures
for accommodation of the kind would soon
be reduced. This fact did not, however. de-
prive the extreme rate reached during the
day Of great significance, which testified
with a plainness that could not be denied
or blurred as TO the existing money scarcity.
II is. Of course. not improbable that by
reason of the Governments payments on
account Of the maturing 4 per cent. national
obligations the supply Of money at this
centre will be somewhat temporarily in
creased during the next two weeks owing
to the fact that the greater portion Of the
4 per cent. bonds turned in for redemption
will he paid OF through the New York banks.
But the money thus received will naturally
soon he sent to its owners in different por-
tons Of tho country. The local money stu
alton in view Of the increased pressure
for gold from France, can only be described
as f~orbidding. from every sane point of
view, a movement for the rise in stocks.
however little IL may interfere with the
twisting" Of SPECTATORS for the fall. The
advance in wheat to-day was doubtless due
TO a greater or lcss extent to signs Of an
impairment Of foreign harvests, and many
stories Of the kind invariably heard or
such occasions we're circulated concerning
, expected favorable developments regard
ing the security market. One Of these was
to the effect that the Hartman manage
ment had determined to repeat in degree
their action OF a year ago and to declare ar
! increased dividend upon Southern Pacific
stock. An enlargement Of the dividend rate
on the United States Steel common shares
was talked Of, and another tale which was
of much more likely character was that ar
rangements were slowly progressing for
the taking over Of the Northern Pacific
Railway Company's equity in the Chicago.
Burlington and Quincy property 10y the
Great Northern Railway Company. The
chief reason why such a scheme has not
been worked out before, innsmuch as 1t
il one that is eminently proper and de-
sirable, has been, supposedly, that il would
have TO bc carried through in a very easy
money market on account Of the large
amount of money raising that would he re-
quired But IL would be possible for the
Northern Pacific company to turn over the
Burlington to the Great Northern without
any money raising whatever.