The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-06-08
FINANCIAL AND COMMERCIAL.
MONDAY. June I

cbhS -
Although there were no unfavorable
Developments in the news. and indeed
hardly any developments at all, the stock
market to-day. although maintaining
itself most Of tho time with steadiness
and displaying strength early in the day
in various particular stocks. was in the
main throughout under tho influence
Of realizing sales and closed with a rather
rapid downward movement in progress.
There were those who asserted that
anxiety as to the I Of the Govern
ment's crop report. due to be made pub
lilo tomorrow. was the cause OF the de-
cline: others said that the showing OF
decreased reserves made on Saturday
In the reports Of the banks and trust
companies, taken in connection with a
similar exhibit in London and a closer
working Of rates there. was responsible
for the weakness. The truth is. Of course,
that the absorbing power Of the market
has been pretty severely tested recently
and that the market Is undoubtedly
showing in considerable degree the pres
sure Of that weight of stock" to which
it has been subjected. Liquidation Of
inc hluu ueSCTlDtA was un1uoStiohooly
more in evidence to-day than it was
either on Saturday or Friday, or more
correctly speaking the effect Of the liqui-
dation was more apparent. In the best
quarters the technical condition Of the
market was regarded as having been
improved by the selling Of stocks that
has taken place. A security market
cannot advance without occasional re-
oessions. and the longer 1t advances
without ~seasonable reaction the more
dangerous and topheavy It becomes.
AS regards its probable course after one
Of these reactions every student Of the
situation must judge for himself. II
the advance in the market has been OF
purely speculative sort and in no way
based, or based in but little degree, upon
considerations Of intrinsic merit its fall
when the time for a fall m will be
serious. II, on tho other hand, the rise
has been caused by a well grounded
anticipation OF developments later on
and the market in reality is only suffering
from a temporary overdiscounting OF
these favorable prospects the reaction
will be kept within relatively narrow
limits. This r1uoh should perhaps be
remembered by spectators for tho rise in
stocks at the present juncture that the
real basis Of this rise has been thus far
the confident belief that tho outcome
Of the agricultural season this year will
be Of happy sort. especially as concerns
the country's corn crop, our most waltz
able article OF staple production. Yet
h~,.h< oe 10 ovaru rroaanf outlook for
a bumper crop Of corn the crop Is as yet
barely more than planted. II may very
we'll be that some OF the larger lnanciers
have arrived at the opinion that they
would like to see a further unfolding
OF conditions regarding the crops before
they commit themselves further in stock
market operations for the advance.
The irregularity OF the market in the
first half OF the day was illustrated in
the fact that while the Union Pacific,
United States Steel common and one or
two others Of the most prominent stocks
were plainly inclined to heaviness, there
wore at different intervals sharp uprushes
in the Reading. Atohison. Rock Island,
Erie, Brooklyn Rapid Transit. Louisville
and Nashville, Wabash and numerous
other shares. All these last named
stocks declined with the general market
and in about the same degree when the
prevailing weakness asserted itself
toward the end Of the day. A large
number Of highly gratifying reports OF
railway earnings published during he
morning and afternoon attracted but
little attention. possibly because the gen
eral tenor OF these reports has been uni
formly OF such encouraging nature that
people in the financial district are becom-
ing accustomed to them. There were
no changes of importance to-day either
in sterling exchange rates or in the price
Of call or time loan accommodation, al
though it was said that tho trust COM
panies were considerably restricting their
offerings OF money owing to the narrow
margin now existing between their
actual surplus reserve and the legal limit
thereof. The wheat market in Chicago
was closed on account OF the municipal
election in progress in the city, but grain
prices on the local Produce Exchange
rose with decided buoyancy owing
primarily TO a rise in grain prices abroad
caused by continual reports of crop
damage from drought in Argentina and
the outlook for a poor harvest in more
than one European country. Kansas
too turned up to-day with reports Of
damage to wheat there from hot winds.
these Immediately following upon stories
Of injuries to the crop from too much
rain a few days ago. II the reports Of
the different State Agricultural Bureaus
that have been published in the last week
are to be taken as indications Of the
probable character OF to-morrow's Gov
eminent report as to the wheat crop the
Government showing cannot, as would
seem, be very ~unfavorable. There is no
doubt. however. that the weather for tho
crops in the last month has not been as
favorable west Of the Mississippi River
as east Of 1t.