Evening star., 1909-06-06
STOCKS LOOKING ROSY
Weekend Conditions Look
Good for Further Rise.
RENEWEDBUYlNG SUPPORTS
Highest Figures Of the Year for
Some Issues.
HEAVY SELLING FOR CREAM
Market Quits With Nearly Uniform
Record of Net Gains-Crop
Prospects Hopeful.
RENEWEDBUYING SUPPORTS
HEAVY SELLING FOR CREAM
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, June 5.-Such an increase
In the activity Of the stock market as
has taken place since the compilation of
last weeks bank return was necessarily
bound to be reflected in an enlargement
of bank loans, and, unless the banks
gained in cash in a corresponding de-
gree in a decrease in the surplus reserve
of the institutions associated in the clear
ing house.
Inasmuch as all estimates yesterday
foreshadowed only a moderate increase
in the volume of cash holdings OF the
banks a poor bank statement was rather
uniformly expected today. and while II
could hardly be said that the bank re-
turn when published was more untaVor-
able than had been looked for. the char
acter of the showing attested, along with
a similar exhibit made las; week by the
Bank of England. the effect of the recent
upward movement in security prices mere
and in England upon the existing store
of hank capital.
Today the bank under the average sys-
tenn registered an Increase in loans OF
100000. a decrease in cash OF Sl3Oo.-
600. and decrease In surplus reserve OF
S612S.Un. Under the actual hgures OF
the statement loans increased nearly S2o,-
600 On cash decreased S33uD.0~ and the
surplus reserve decreased $1.419Un.
But as the total bank surplus stands at
com Portable figures and money rates
show not the slightest tendency TO ad-
vance the bank return lost but little of
that academic character that it has
maintained through the present year
Tone Resists Liquidation.
In the stock. market today prices were
at first inclined to be weak under the in
f1uence of liquidation In certain stocks
that was a feature of the market yester-
day. but the innate residence of the gen.
eral situation quickly asserted itself. Re-
newed buying set in in all the prominent
issues. carrying many of them 10 the
highest figures of the year.
The L. S. Steel common shares in par
ticular, after selling shortly after the
opening of the market at a price IA
points below the highest level of Thurs
day. recovered TO within g Of point
of its high record quotation: Especial
strength was shown by Atchlson, Bal
timore and Ohio. Erie. Ontario and West
ern. General Electric. Illinois Central.
Northern Pacific and number of stocks.
Finally, in the last half hour of bust
ness. another selling movement occurr ID.
which was insufficient. however. to leave
other than a nearly uniform record OF net
gains when the market left off.
OF news today of market interest there
was. aside from the bank statement, but
little else than the announcement this
morning of the resumption of regular
dividends on its preferred stock by the
Republic Iron and Steel Company and
the declaration of an extra dividend CT
one-quarter of / per cent on the same
stock. on account of the payments due
thereon for back dividends. 1t should
be noted that the volume of dealings in
the market was at the same high rate as
that of yesterday and the day before.
Some Adverse Criticism.
The violence Of the rise in security
prices in the last ten days. or really, in
the five business days of the current
week. was. as the week osed, the
leading topic of conversation in financial
circles. There was expended upon the
advance the usual amount of adverse
criticism heard at such times. good
share of it proceeding from older and
more conservative people. TO the effect
that the rise had been too rapid; that
pace of the market was becoming al
together too wild. and so forth.
That market of the sort that de-
veloped this week is of more hazardous
character as regards its purely specula-
tive side than one of the kind to which
people in Wall street have lately be-
come accustomed goes without saying,
hut il must he confessed that more
force would attach TO such animadversions
as have been described if many of those
utterlng them had not proved themse YES
TO be signaLly wrong in their concep-
tion of the stock market and of the
fundamental soundnesS of business con-
dltions for many months past.
Evidences now fairly abound of the
progress OF business improvement
throughout the country. The bank clear
lngs. the railroad ernings. the record
breaking orders for iron and steel and
host of similar indications attest this
In an unmistakable way.
So far as the activity of the stock
0a6 la
bered that up TO the beginning of the
present week the average range of Sc
curlty prices had enjoyed little IL any
substantial advance for nearly month
previously. Such strength as the market
exhibited was shown in some Of the in
dustrial stocks having TO do with lines
OF trade which were feeling in a par
ticularly vigorous way the thrill of new
life and business recovery.
Underlying Strength of Market
Meanwhile, although the market was
maintaining an attitude of comparative
inaction except in few departments the
underlying strength of the situation was
becoming more and more manifest. The
United States Steel stocks rose not only
because the prospects of the iron and
steel business were Frightening. but be-
cause of knowledge OF the large sums Of
money expended out of earnings upon
improving the property of the corpora
ton In recent years
But il was undeniable that much the
same process Of expenditure of earnings
for the benetit of property had taken
place in the of the Atchison, Union
Pacific, Southern Pacific. Erie. and in
general. all the great railway companies
OF the land. II stocks were TO be bought
upon a recognition of the value of equities
the force was operative regards a
great many railway companies, as we'll
as industrial organizations.
Conditions. therefore, are ripe for
rise in the railway stocks in the in
dustrials. and perhaps the torch that
started the blaze in the railway issues
in the market last week was a feeling
which became dispersed all through the
financial community that, although the
wheat crop of the country this year might
not be Of bumper kind vet there was
every indication for production Of corn,
the country's most valuable staple, far
outrunning all previous records.
The generally hopeful feeling about the
crops was also distinctly encouraged by
the government report Of the condition
of the cotton crop of May l, showing
that in spite of all the talk about bad
weather and crop damage in the last
month the prospect for cotton In the
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