The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-07-31

New York. July SO.-The course Of the
market was reacionary from the open
ing 70 the close to-day. A decline was
not unexpected. in view Of the gains
made In the middle Of the week. and
was probably due principally 20 a de-
crease in the amount OF the short cover
ing and to proht-taking on contracts
made at much lower prices early In the
week
The London market was closed, and
the local market lacked the stimulus that
London buying gave to prices on the
three previous days. In this market the
disposition Of spectators to take profits
was probably increased by the develop
ments IN Spain and by fear that Lon
don, on the resumption of business there
next week. might consider Of serious i'm
port the trouble I'm that country-an as
sumption that received some support from
the heaviness Of other foreign markets.
A feature Of the reaction was a net
loss OF six points IN Sioss-Shemeld COM
mon stock. which also broke sharply
yesterday. To-days decline accentuated
the reports Of the probability OF a reduc
ton IN the dividend rate. Evidences OF
liquidation in Reading. Southern Pacific,
and Union Pacific also impressed upon
spectators the desirability of taking
profits at the weekend.
Bank Surplus Is High.
The bank statement was in accord with
expectations. It showed an expansion
Of 100000 in loans. but a gain OF
$29OOO.OoO in deposits and gain OF
$S,500,OOO IN cash holdings. The surplus
reserve was increased by 81. 100000. and
now stands at Sl750O.OOO. an extremely
high amount as compared with most cor
responding weeks in previous years
The average price Of stocks at the end
OF the week was close to the level at the
end OF last week The severe break,
followed by a strong rally and then a
reaction from that rally. left prices prac-
tically unchanged. Opinions differed as
10 whether the technical position of the
market was stronger at the end Of the
week than at the end OF last week. but
there was nowhere any feeling that the
market was subject 70 any such convul-
sions as overpowered it in the early days
Of the week just passed.
Critics who insisted that the rally had
been altogether too tumultuous to be sub
stantial, Yet admitted that any such lIqui-
dalton as was threatened by the dissolu-
ton Of the Pearson Farquhar syndicate
is inconceivable and that the greatest
menace that overhung the market had
been removed. As a result Of the settle
ment Of the syndicate's affairs a more
stable and orderly market may be looked
for in the near future
Gold Imports Expand.
Apart from the fortunate outcome OF
the iIl-starred operations Of the syndicate
the favorable development OF the week
as in its immediate predecessors. was the
continuing Improvement in the money sit
uation The gold import movement ex-
banded until II has now reached a total
of S11.250,OO0. and there is every assur-
ance that bankers in this city viii secure
a great deal II not all Of the S4.5OO,OOO gold
obtainable in the London open market
at the beginning OF next week. Healthier
investment buying Of securities, both at
home and abroad. was also noted this
week. and the position Of the market IS
further improved by the elimination of
weak speculative accounts from broker
age offices in the early days Of the week
The week end trade reports were Of
mixed character. but none Of them sug-
gested that the contraction In business
as a whole is up TO the present anything
more than a healthy readjustment.
Wheat reports in the course OF the
week have been generally favorable. but
the condition OF corn is not as high at
the close Of the previous week. and cot
ton has also sustained some damage. In
cotton interest was quickened to-day by
the report Of the National Cinners' Asso-
citation. which placed the condition at
TO, this figure indicating with average
weather from now on, crop no greater
than Il. $4,000 bales
CTRn