Evening star., 1909-06-27
PRICES CLOSE HARD
Weekend Figures Substan-
TALLY Changed From Friday.
UNION PACIFIC FEATURES
Earlier Ten-Point Advance Wiped
Out and Restored.
BANK STATEMENT SURPRISE
Increase of s13,e77, 900 in Cash Re-
serve Caused by Decrease of Near
ly S32, 2,5OO,O 900 in Loans.
UNION PACIFIC FEATURES
BANK STATEMENT SURPRISE
Special Dispatch TO The Star.

NEW YORK, June 26.-In no other
place than in Wall street was a heartier
welcome extended today to the temporary
relief from work at the end of the pres
ent torrid week, and, as was highly nat
ural, dealings in stocks during the day
were not more than nominal. Heaviness
IN the London market owing to the an
ticipation of the midyear settlements,
that has been in evidence for several days
past, again resulted in the selling here
of moderate quantity of stock for
European account, and yesterdays slight
tendency toward decline In prices was
accentuated in the early trading by
cable from Paris that all attempt to list
United States Steel common shares there
had been abandoned.
But the statement was no more authori-
tative on the point than any other that
has recently appeared. 1t is well recog-
nized that the whole matter Is now held
in allowance. and discussion concerning 1t
really exercised but small influence as a
stock-market factor.
After the first half hour of business
prices hardened and remained with nearly
all the prominent stocks at higher
level throughout the day. Final prices
were substantially changed from those
of yesterday.
Only Notable Incident.
About the only noteworthy incident Of
the day was decline at one time of
2i2 points in the price of Union Pacific
stock. wiping out the entire ten-point ad-
vance in the stock made earlier in the
week. The stock. however. recovered
with the rest of the market before the
close.
The weekly bank statement, which did
not appear until much longer than usual
after the end of business. was a remark
able disclosure of financial conditions. In
the average figures of the returns there
was correction of last weeks under
statement so that todays figures exhlb-
tied a great increase of S13.61I 600 in the
cash reserve, caused by a decrease of
nearly So. JU0,U0 in loans and an in
crease OF nearly $7,0OO,OOO. Today's ac-
tual figures were, of course, a little less
glowing than this, but they showed that
an increase of SO. 100000 in the cash sur
plus had brought about decrease of
S12oU.oOO in loans and an increase Of
$9.6UO,0OO. A clue to the reason for this
extraordinary state of affairs was in part
afforded in the return trust companies.
The loans of these institutions increased
over $6.00O,0OO, proving that bank loans
had been in some cases transferred from
trust company books Probably also for
eign credit has recently been extended to
this market on a considerable scale. At
the same time there are substantial rea-
sons for believing that heavy financial
syndicate operations in the market have
latterly been wound up with a conse-
quent reduction of bank liabilities.
Irregular as a Whole.
The weeks stock market as a whole has
been irregular. Prices fell sharply
Monday, rallied in the middle of the
week, so that two-thirds Of the entire de-
cline from the high point of the year
was recovered, and were then dull, but
steady, near the close. feature of the
market at times was renewed agitation
of the long discussed and still unsettled
question as to the right of the Union Pa
cific preferred stock 10 share in any d.
rect or indirect distribution of the Union
Pacitic's treasury assets.
Financial opinion seems to be pretty
nearly evenly divided upon the matter,
and il is altogether probable that the
rights of the Union Pacific preferred
shareholders as regards the point at is
sue must be settled eventually by the
courts. With reference to the immediate
stock market it is reasonably clear that
the market is passing through the usual
June phase. 1t is the period of the year
when interest is always keen regarding
the crops. and when. therefore, the nat
ural tendency of the market is toward
quietness, especially If rise Is gone
on previously.
Pessimism in Evidence.
Doubtless a certain amount of pessi-
msm has been excited in the financial
district by President Taft's PRONUNCIATION
of the corporation tax scheme. and ground
for unfavorabie comment upon this GER
tainly exists, considered from broad
point of view; but here again, however.
il is all but absolutely certain that the
corporation tax law, If passed. will have
TO be construed and sustained by the
courts. Most serious doubts as to the
constitutionality OF the measure are en-
tertained in the highest legal quarters.
One matter that was involved in no
doubt at all during the week was the
fact that the warm weather, while
making life miserable locally, was vet
a factor of decided stimulus in the gen.
eral business world. II promoted in
lively way the sale and distribution of
summer merchandise, and did worlds of
good TO the crops.
At no time this year have the COM
niercial agencies been so unanimous and
enthusiastic in their statements of the
general progress of business as in Their
reports published today. The activity
Of the iron and steel business is such
that the expectation now is that the
minis will be closed only on a compapa
lively small degree for the usual summer
where at the top notch thus far touched