The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-06-15
Financial Troubles in Eric and
Union Pacific Destroy Pub
lie Confidence.
STEEL CUT NOT BIG ENOUGH
III Spite OF Bad News Car Famine
Di1,it1islles, and Crop Out
look Is Good.

NEW YORK, June 1i.-Untll after
tho middle of last week the stock mar
ket was In a condition of stagnaton.
and the bull resistance OF prices while
this lasted and the apparent absence
OF selling pressure In spite of tho leth-
argy OF the demand was taken as a
good indication Of the technical condi-
ton Of the market.
A change followed the announcement
of the plan for funding the Erie bond
coupons, and the closing Of supscrip-
tions to the Union Pacific bonds and
acute weakness developed. The APP
preach of the convention period for
the great political parties has an in
1ounce In suppressng speculative ac-
tivity, owing to the traditional belief
in the tendency towards a waiting at
titude In the general business world
during the progress of national po-
litical campaign. Besides this general
consideration making for dull mar
kets there We're number Of Incl
dents In the weeks events which had
an important bearing on the shaping
OF the future. First place In this re-
spect is accorded by financial opinion
to the cut in prices of steel products.
Waiting for Another Cut.
The openly expressed doubts OF rec,
ognized trade authorities as to the suf-
ilcency or the efficiency of the cut to
revive active consunptive demand ac-
count for the decreasing effect which
has followed the announcements.
Consumers are still holding off in the
conviction that further reductions
must be conceded, and such further
concessions are alleged to have been
made by important independent inter-
ests in steel bars. The prospect of
wage adjustments to meet tho reduc-
ton in prices realized for steel pro-
ducts and the danger of labor dis
putes with the complicating factor of
the political campaign arc not relish
ed al possible speculative factors.
Another weight on the market was
the uncertainty over the market
policy to be pursued by powerful
financial interests when the Union
Pacific bond flotation was once
fairly concluded The Importance
attached to this transaction was
the outgrowth of the popular assump-
ton of the extent of the preceding
marking activities designed to lead
up to and foster this flotation; as
sumptions which attributed almost the
vance for many weeks past to those
sources.
Financial Patch Up.
The assistance preferred by the head
of the Union Pacific system to the Erie
by purchase of that company's notes
at time when a receiver for that rail-
road seemed inevitable. was supposed
to be directed towards the same gem
cral purpose of conserving confidence
for the purpose of furthering plans for
nc eded financing Of other railroad pro-
jects. The closing of the subscription
lists for the Union Pacific bonds and
the plan for funding the interest on
the Erie bonds. in view of the admitted
insufticlency OF earnings to meet that
requirement, were announced stimuli
taneously, and gave a sinister impress
sion of a patching up and tiding over
| Of an embarrassing situation while the
new capital flotatons were being ef-
fected.
The government crop report as OF
June LIST had reassuring effect. with
promise of wheat crop estima ted
at over 6ss 100000 bushels. Mercantile
| lines report moderate expansion. and
| the reduction of $4,000 in the number
| of idle freight cars for the two weeks
ending May eth was counted an accu-
| rate index of better traffic conditions.
| Money continues to accumulate In all
the great reserve centres of the world.
with resultant downward tendency of
interest rates.