The Washington herald., 1908-06-29

New York, June 2s.-Matters OF a
political nature ceased to exercise an
acute influence upon the stock market |
prices last week chiefly because people |
in the financial district were surfeited |
for the time being with discussions Of |
this sort.
Something OF a restraint was still I'M |
posed by the approach OF the nominating |
convention of the Democratic party and
in an indirect way the death of Mr.. |
Cleveland undoubtedly affected the mar
ket The passing away OF this patriotic
ana conservative man. whose views on
questions OF finance and measures AFFECT !
ing rights OF property were so sound and
wise and who defended them on occa-
slons with such manfulness. even against
the opposition Of the majority OF his own
party. served to emphasize in an impress
sive way the character and services of
Mr. Cleveland.
So far as could be ascertalned, the
larger financial interests bothered them
selves little II any with the market last
week, and nine-tenths OF the operations
there were the work or professional op-
orators Of minor grades, and this, with
the hot weather made the market very
dull Yet. nevertheless. one thing was
very clear. and that was that prices
were presenting the same stubborn re-
sistance to speculative efforts TO depress
them that they have done on 50 many
occasions previously during the year.
Floating supply Not Enlarged.
The floating supply OF stocks in Wall
street was evidently not enlarged The
market remained firm under declines in
certain stocks or groups Of stocks that
were at times particularly severe. Liqulda-
ton when II occurred. or II II occurred
at all. was sporadic and not general. and
there were numerous indications OF a
kind TO which habitual spectators at
taoh significance that the market was
resting very comfortably in a sold-out
condition. Perhaps the broadest gen
eralization that can be made Of the pres
ent situation Is that although current
compilations Of railway earnings and
other similar data show that the falling
or in business this year is greater even,
relatively, than It was in 1893. the in
herent prosperity Of people has become
so well founded and deep seated that the
business depression now is OF less mo-
ment than Il was In the former period.
The reserve stores OF wealth in the
country are so large that our people. as
now seems likely. will be enabled to
stand the time Of slack tide with far
greater ease than they have ever done
before. so that whatever may be the
varying news OF the day, the political
scares. the stories OF too much rain or
TOO little rain In the crop districts. and
the cases OF individual bankruptcy, or
something nearly approaching that IN
the country's corporate life, the broad
outlook for the future is ore Of confident
hopefulness.
Gold Henps Exceed All Records.
Probably the firm. even II not always
expressed, conviction OF this sort on the
part OF those in the higher banking and
financial circles was a good deal fortified
last week by the attention that was pub
licly attracted 70 the immense heaplne
up OF gold supplies that is going on in
every financial center in the world.
These holdings now reach in the az
gregate the largest ever known. are IN
many individual instances larger than
ever before known at this time OF the
year, and IN the case Of some OF the
great national banks are the largest on
record absolutely All this has been
caused primarily by the let-up In bust
ness that has everywhere taken place
but the force Of this factor is augmented
by the production OF gold in the world.
which is going on at an enormous and
record breaking rate. II is not neces-
sary 20 pass into the realm Of theory IN
! order TO prOphesy as 10 the sure and Ger
! tain effect that the accumulation OF these
! great stores of idle money must have in
due course upon the worlds business rela-
/ tiOns. There have been occasions IN
the history Of every country when an ac-
cumulation Of gold within it's borders led
| 10 an expulsion Of gold and was evidence
not so much Of business depression as of
an imitation OF the currency.
Financial Strength Abnormal.
! That the phenomenon now witnessed is
| general serves as a disproof OF any pos
| sible suspicion that causes OF the last
named nature are al work The sum and
substance Of It all Is that the whole iu-
! ternational financial position is rapidly
getting into a position OF abnormal
/
! this strength will choose to exert itself
| in the financial market. that II viii do so
AT some time and with the power Of a
! giant may be regarded as a fixed fact.
/ The occurrence Of this event will doubt
/ less bear some relation 10 the hour when
| the present period of the depletion Of the
stocks Of commodities Of all kinds reaches
| the end set to II by nature. All the time
/ by day and by night. silently. but in an
| enormous way, the reduction OF these
! stocks is proceeding. while the production
| Of them has In very great degree ceased;
and tho record OF history Is full OF sug-
| gestions es to the course likely to be pur-
| sued by the security market when the
| contingency here outlined becomes acute.
Again. last week was one of splendid
| sunshine over the country's entire agri-
/ cultural district The heavy rains that
have been working undoubted mischief
in Kansas and Oklahoma ceased 10 fall.
and the only wet weather that was seen
/ anywhere was in certain other portions
/ OF the country where its presence was
| needed.
Steel Trade stimulated.
There is no doubt that the cuts that
have been made in steel prices have re-
suited in stimulating business in this
trade, in certain departments at least.
The security market was called upon
10 meet last week, as has already been
said, with the adverse influence Of de-
clines in certain securities, due SEEM
mgly, q specific reasons. or It may be
10 mere speculative attack arising out
| Of the general knowledge Of the strained
condition of many properties. The most
| prominent case in point was a sharp fall
In the price OF nearly all the Rock Island
and St. Louis and San Francisco issues.
| The troubled condition Of the affairs Of
these two railroads has been long an
open secret. The holding company. OF
| rather twin holding company scheme hv