Evening star., 1909-06-20
CROPS HOLD THE KEY
contingeny in Future Advance
in Stock Prices.
OUTLOOK NOW FAVORABLE
Dealings at Week End Small and
Inconsequent.
HALT AFTER IA POINTS RISE
Railway Earnings Keeping Pace
With the Activity in Iron and
Steel Business.
OUTLOOK NOW FAVORABLE
HALT AFTER IA POINTS RISE
Special Dispatch to The Star.

Special Dispatch to The Star
NE" YORK. June 19.-Today's stock
market seemed to be pretty nearly en-
tirely neglected by the majority of those
who ordinarily figure in II as buyers and
sellers. Dealings were altogether on an
exceedingly small scale and net changes
In prices were in the greater number Of
cases trivial.
A weak stock. relatively. was American
Sugar Refining common. supposedly be-
cause of pressure exercised for the same
reasons as those which have been opera
tive for some time past and with which
current developments have familiarized
the public. An exceptionally strong
stock. on the other hand, was Atchison
common. reason for which was perhaps
the favorable news last week and today
from the Atchlson crop territory.
The steadily rising tendency displayed
by the Atchison shares. however. is lead
ing 10 more or less general belief in
the financial district that ii is quite pos
siole that the directors of the company
may soon place their stock on a quar-
terry instead of a semi-annual dividend
paying basis and declare quarterly
dividend at the annual rate of q per
cent instead of the ) per cent rate now
paid.
Grain prices were again heavy today,
owing TO the constant progress made by
the crops all over the west The weekly
bank statement was important in this
respect that 1t gave proof with a plain
ness rarely exhibited of the value of
coupling with the average figures of
the condition of the banks those giving
actual state OF these institutions at the
close OF business Friday.
Bank Surplus Pleasing.
Today in the average bank return bank
loans were reported as increasing s1O.-
37IoO0 which. with. an increase in cash
of less than 5000, 600, resulted in only a
small increase in the surplus reserve.
This statement under the old method of
reporting would have been considered very
myStify1nS, as II was almost absolutely
certain that bank loans had been reduced
rather than increased in consequence of
the weeks stock market liquidation
Ihe actual figures when they appeared
solved the difficulty, it being made plain
that the reason of the curiously slender
dlmlnutton of loans in the average fig
ures was due to the fact that the stock
market liquidation came too late in the
week to affect the average calcula tions
In the actual figures q great decrease
OF over $35,000.000 in loans was shown,
while the statistics Of cash increase
were practically the same as those un-
der the average system. Therefore, cash
reserve increased in the large sum of
$13,160,20 The existing bank surplus
Is such as to allow it to make pleasing
comparison with those of former years.
Two Conflicting Influences.
1t Is plain enough that fluctuations in
the price of securities this week have
been determined by two conflicting in
fiuences. one Of these recognition by the
speculative community that a certain
amount of reaction in the stock market
was altogether to be expected after the
advance of over fourteen points in the
average range of prices since the latter
part of February and the other extraor-
dlnary strength of underlying condi-
tions favoring the countrys prosperity.
The reasonable conclusion to be drawn
from such a state of affairs is that If
prosperous conditions continue to hold
the stock market will, after a time, re-
sumo its advance. and this demonstrates
that the one really salient factor in busi-
ness and financial conditions just now
is the outlook for the seasons crops If
we are to have good crops, and it may
be in certain staples big crops this year,
we will have enlarging business over
the country and higher prices for Sc
curities.
This much seems absolutely certain,
the possibility being always recognized,
of course, that disaster may come upon
US from some unexpected quarter There
development of the week has been, not
the talk pro and con about listing of
steel shares in Paris. not the report of
the commission appointed by Gov.
Hughes TO investigate stock and COM
modify exchange. nor President Tafts
new proposition in regard to a tax upon
corporation earnings, but the prevalence
of splendid weather for the crops.
Wheat and Corn Outlook.
That wheat and corn made great prog
ress in the last ten days Is now univer-
sally admitted and the decline in the
price of the speculative options for these
commodities bears witness to the fact
Presumably the stock market will still
maintain a more or less hesitating at
titude until Developments of the kind
stated are further strengthened But it
certainly does not seem with conditions
as they are, and with money as easy as
II is. as II any serious setback In mar
ket valuations-which may, indeed, have
already taken place-woud occur mean
time. From every quarter of the bust
ness world comes a tale of increasing ac-
tivity.
The railway earnings are showing en-
largement in a most gratifying and sur
prising way. The picking up OF the iron
and steel business has at last swept the
railway companies from their position OF
solidity and INSTRUMENTATION that they
orders for steel rails and cars and all
sorts of materials are coming into the
steel companies in great volume.
Bank Clearings.
Specifications with all these orders are
being promptly furnished and a feature
OF the business that began to be notice
able last week has this week occupied
the center of the stage. namely, the press
ing demands made by those who have
ordered materials for prompt delivery.
According to the commercial returns OF
Dun & Co., the record of bank clearings
this week exhibits gains in this city OF
nearly 50 per cent over last year, and OF
23 per cent over 1905. while outside OF
New York, where the stock market deal
ings do not swell the total, the increases
aIe 21.6 over 1908 and 1913 over 1906
The report Is in line with the statistics
furnished by other commercial agencies
and II is considered In its general bear
ing lies the reason for the abounding con.
fdence as to the future shown in Wall
street in the last six business days.