The Washington herald., 1909-07-05

New York. July 4-The week in which
the stock exchange adjourns for the
4 Fourth Of July holiday Is proverbially
stagna5t in stock market sense. the
Arecord being indeed that the week IS one
The dullest Of the year, and the quiet
IS OF the market was intensified last
ek by the fact that the stock ex-
l.enge holiday was Of triple rather than
single character
The real reason for market dullness at
this period is, OF course. that the semi
annual financial settlements then take
place all over the world. and that so
far as our own country is especially con-
cerned 1t is the critical season as regards
the crops. Nevertheless. although these
influences combined 10 reduce the vol
ume Of transactions in stocks last week,
the most prominent feature Of the market
Sea. -
Toughout the week prices hovered In
te neighborhood OF the highest OF the
ear. and when business left OF on Fri
ay, not 10 be resumed until the follow
hg Tuesday. average figures were the
highest Of the week and pretty nearly at
is what could only have been expected
in view Of the way financial matters are
shaping themselves. even II il is still true
that a large number OF people would
like TO see 2 more reactionary spirit ex-
hjbit itself in order that they might buy
stocks more advantageously.
Business Growing Brighter.
BGe the truth is that the whole financial
bpd business outlook is continually bright
Sng. Every occurrence tends 10
'-engthen the general situation in all
& aspects and the instructive tendency
pf the security market. rising superior
o all artificial restraints, is 70 advance.
Il is. very probable that greater bar
riers would be presented TO this rising
tide than are now offered If money rates
here instead Of varying between / - and
per cent at a period Of the year when
call for funds is made only inferior
IN extent to that witnessed on December
81 should become materially sitter But
TIA overwhelming likelihood IS that money
rates will not be factor in the situation
az al except as encouraging purchases
OF stocks until the time later in the year
when crop-moving business Is in full
swing.
rates were near az hand inasmuch as our
local clearing house surplus was reduced
10 hgures that were no longer fiattering
as compared 20 those Of preceding years
but food Of money began TO pour !
here from the West, and the usual Dor
rowings Of our bankers began TO be made
In Europe in anticipation. after the usual
course. Of European payments for our
foodstuffs bought in the autumn
Rrrr He
weeks stock market, 50 far as any was
exerted at all. was the constantly i'm
12rovlhg outlook for the crops Another
sex Of the critical season has passed,
with every indication that the crops are
in better shape than they were seven
days previously. and that the govern
nent agricultural report as Of date OF
July / which VIII appear during the
coming week. will show. as II does not
always do. that the crops have bettered
instead OF deteriorated during the month
Of June.
Harvests Are Abundant.
Every intelligent person fully under
stands that the question Of higher or low
er markets and Of larger or smaller bust
ness in the country this year will depend
more. than anything else uDon the out
come Of the harvests- There are strong
reasons for confidence that these harvests
VIII be abundant. If not indeed. in many
cases. actually bumper" and therefore
with money as cheap as Il is the stock
market IS impelled to discount after it's
4 invariable fashion the daily development
Of conditions making these reasons even
more strong.
There IS little 10 say about the bust
ness Of the country except that It still
continues TO grow better in the same
slow and sustained way that II has
throughout the year, although the I'm
proyement in the steel trade is more
marked than ia any other quarter. The
recent hot weather uncomfortable as il
has been, has ct helped the sale OF sum-
Gr merchandise, and If the farmers have
been delighted with the warmth that has
fairly lifted their crops out Of the ground
In the last fortnight the sellers OF dry
goods and business men generally have
been no less so.
Railroad earnings are not slackening.
the only change here being that many
OF the larger lines notably the Union
Pacific. which cut down their operating
expenses 10 low figures during the hard
times and were perfectly enabled 70 dn
so because Of the expenditures for i'm
provements made in previous years. are
now once more and with equal propriety
putting their operating ratio back tc
moro normal figures.
increases in net earnings may not
therefore. be so much larger hereafter as
they were a short time ago. but there IS
no lessening Of the probability that they
will still be such as TO justify larger
distributions II the autumn fulhlls the
promise regarding the crops that th'
summer has thus far made.
The Increase in the volume OF the stee
and iron business Is phenomenal This
United States Steel Corporation is takinl
orders at the rate Of 5000 tons day
which is, OF course, more business thar
the concern could handle If the orders
were in every case accompanied witt
specifications and kept up al the same
rate for a number Of months. II is
sact, however, that the specification.
upon old orders are coming in at an en-
laiSlng rate and that a pronounced feR
ture Of the business is the desire OF con.
sumers to hasten deliveries for which
contracts have been made.
RRTTTCH FLAG STTRS IRE