New-York tribune., 1908-07-06
THE FINANCIAL MARKETS
Low RECORD DEALINGS IN SECURITIES MARKET.
Prices neau Firm and Stocks Strong HandMoney Ease to
THE WEEK IN WALL STREET.

Activity in last weeks stock market was re-
stricted by the approach of holiday and by
the uncertainty over politics, the crops and
business Notwithstanding the extreme dulness
which made the week a record breaker for the
year in the matter of quiet trading, prices as
a rule were firm. the board room element ap-
parently being unwilling to operate to any eX-
tent on the short side of speculation. owing to
the strong technical position of the market Per-
haps it if were not for the great abundance OF
cheap money stocks would not be selling at their
present level but the fact that money is so cheap
and so much under the return on standard stocks
and bonds together with the small floating supply
of securities insures prices against big slump In
the absence of developments that would weaken
the intrinsic worth of investments ana snake
the confidence of holders over the future STOCKS
are In strong hands, the liquidation that was
made necessary by the panic last fall mas peen
thorough, weak spots have been eliminated ana
the substantial market interests with their ex-
tensive resources find no difficulty in protect
ing prices against bear attacks There Is no
good reason. based current condluons ano
prospects for the sale Of securities 1t is quite
evident the worst is over in the business world
it appears proba bic we will have average har-
vests and il is quite certain the nomination OF
Mr.. Bryan means his defeat at the polls his
election would be calamity; but the Iact uldt
the business interests of the country are opposed
to him and his policies and will work every
minute until the close of the polls to bring about
his defeat naturally encourages the BELIEF in
banking circles that the people OF the Unlted
States who are In favor Of prosperity, and tney
are the majority element In the country, VIII
keep the party of progress and prosperity at
WASHINGTON by voting unanimously against the
Democratic candidate The country is in no
mood to try Bryan experiments Of government.
In the stock market the first half Of the year.
closed with prices far above the 1917 panic leNel
and the Improvement in securities was equalled
by that in the condition of the banks and trust
conpanies and in the general financial situation
at large, notably in respect TO the resumption
by banking concerns that were forced TO close
their doors last fall The last six months has
been period of convalescence in the financial
community and the recovery has been so marked
that its continuation in the next half year WILL
in the opinion of the best judges, serve TO wipe
out the effects of last years disturbance Inc
banking centres were the first to suffer from the
collapse last autumn, and naturally they have
been the first to recover. Reaction IN business
which was the logical and expected result of the
October disasters, was somewhat slow IN oe-
veloping, but it finally came with a rush that
caused almost heartbreaking declines in rail-
road earnings, heavy mercantile failures and
general restriction of trade and industry. Divl-
dends in many cases were lowered and in some
instances passed. defaults were made on many
railroad bonds and receiverships followed, Hqui-
dation developed in all lines and commodity
prices declined. And now the railroads are con-
fronted with either an advance in rates or
reduction in wages unless, is hoped, the
process of readjustrnent has reached its limit
and the dawn Of normal times In the business
world may be counted upon. There are reasons
for the belief that the hardest period of the hard
times is thing of the past There are signs
in commercial centres of coming increase in
demand and production, and, best of all, there
are indications of returning confidence IN busi-
ness and financial circles Confidence begets
prosperity. Money is so cheap it is drug on
the market. but its accommodating tendency Is
lsving one of the foundations for returning in
dustrial activity.
With the vast accumulation Of funds here and
with big supplies at other centres at a time when
attractive mortgage issues may be bought at
prices that return substantial incomes, 1t would
seem as if there ought soon to be greater ac-
tivity in the bond market Bond brokers be-
iieve that cheap money soon Will be rejected In
increased operations in railway mortgages, both
on the Stock Exchange and over the counter,
and they look for a much better demand for
municipal state and county issues also for in
dustriaI issues of merit There are many gilt
edged industrial bonds representing companies
that never have defaulted on their interest,
notably the bonds of gas companies. Gas COM
panies with but few exceptions. have had a
long career as money makers. and even with the
introduction of electricity and compulsory lower
prices for gas they have not been compelled to
disappoint their bondholders and in very few
cases their stockholders. Any representative
Wall Street banking house will send on applica-
tion lists Of bonds that are safe and, at present
quotations. cheap investments In these days OF
idle money, when many people are leaving their
funds on deposit in trust companies drawing only
2 per cent, II is surprising funds do not seek
better employment in mortgage issues, ana
doubtless when prices have advanced from to
Is points the public will make rush for Wall
Street as has always been its custom in the
mast There was trife more activity in bonds
last week in expectation of reinvestment OF
July disbursements but the volume Of trading
was speculative in character and did not FORE
shadow an immediate expansion in genuine busi-
ness.
The local banks have gained S15O,OO0.OOO from
the interior in the last five months, and in that
time they have sent more than $46OO0O00 gold
to Europe and have returned to the FEDERAL
Treasury upward of S60,OOOOOO Of government
deposits Cash and reserve holdings are heavier
than recorded at this time in many years, and
the call just made by the Secretary Of the
Treasury for additional government deposits and
the demand later in connection with the
financing OF the harvests Will not cause an ex-
tensive advance in money rates. Time money
for over the end of the year could be had last
week at 3a4 per cent. This rate does not indi-
cate any expectation the part of bankers of a
high money market this fall The federal
Treasury ended the fiscal year with a revenue
deficit Of $50. .655, 1872. compared with a surplus
Of SS6 929, ,425 year ago, loss in the twelve
months of S146 5S5417
AS a result of lighter income and increased ex-
penditures there has been a material falling off
in the Treasury's available cash balance, which
at present stands at $23S, ,S9S 3S9 of which S153-
S9e 036 is in depositary banks to the credit of
the Treasurer of the United States. and S14, ,779,