The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-07-24
TIN4>CJih ,ND C0uuERCIiL.
SA1rNnNY. Jmlv ?3.

SATURDAY. July p.
Tca'..-rs e THO markets. to-day. a.
On Thur, DIV and Yesterday. w.rv the
costly hqUidl'l.u in IN" stock market
and IA" extraordinary Improvement IN
the 'Dndtti.u en-. the New YORK. banks
Thrs., e.. u'ra~tlug j", 'IpI''ucuts anr.arcd
~ even bold .- u'rH-t IL no" stock
market the y'.. tJuu continued with hut
slight and f..'.ri" rallies from the op"nIns
- IN" Close - th" -'~-ruu md ~ th" lat"
trading tno-,, was ..u urts- gpS"nc' uf IA"
lily whlnt g. normally "Np"C'od Al The
vcek ,rl af'.- an. such drastic decline
~ prices tlr-lu.. rr.u'S w"r" ~ or close
80 the low Of 90" .lty Iut most "i tn"
acttv. -tpCAs sold AZ u'w bows urlc''s for
the yea Tn. on" THAT hold better than
~ H." others was American smelling
and Rg"nnE which bros" sharply after
the reduction uf "a" lead dividend ON
THURSDAY short covering. more IN evi-
dancc ~ this stock than ~ any other
tanned the r";',rts that men ~ control
If National Lead or associated with them
and controlling aI~' American Sm"lt-
ing and Refining had advance kunwl-
rdc'. II ia" r"lvc'IDu IN dividend for
spc-ulltly" pu'Tu.-o~. Thor" were no
now developments - account for the
TrntinuanC" II M" drastic liquidation
IA ~" action of IA" market intensified
the ucariShn"SS ~ spectators aud timid
investors =, IN" hanS statement en-
,y,irasrd al thus" who hpvnd for material
improvement IN fundamental conditions
Tho hanks showed an tuc.'asr 20 Sl2 90
OOO ~ surplus r''s"-v" 4 d"Cr"as" ot SS67
nO IA loans and an incrrns" ~ 81 90
in cash. The sur Ina r"Srrv" now stands
at IN" extraordinarily hugh ngur" -
sis SOn M which has seldom h.,u
euuallrd IN the CORRESPONDING week 1T
previous vra-s The hanN~. moreover,
gained today s.. 25n 90 IN gold imports,
which were not Included m IA" state
mont
The stock market in ne week was calm
and composed. WORKING steadily toward
increasing dulness ana increased sta
bility. until az noon Thursday the rnduC-
ton of tho National Lead dividend pre-
cip,ta'el new rush or liquidation, in
the coursr Of which ay"rug" prices 81
both industrial. and railroad stocks broke
20 now low pricrs Tor an" period sincr
the fall of 1878 The market was ~ times
rather tadly demoraiI2"d. but The llui-
dation, u -''cnrd, cam" rather from small
and timld holders and from spectators
whose margins wsrr exhausted and
whose stop loss orders wcr" caught than
from men 81 means and financial ability
In this RESPECT tie reaction presented
n contrast To prey lous r"lytlonarv move
uents ~ the year. tor IA thes" hgulda-
ton from important sources was most
conspicuous and most influential ~
the unsaVory action Of the National Lead
directors It is perhaps a sufficient COM
rnentary that in the Last annual report
Of the company. distributed 10 sto"k-
holders "a recently os May the bright
est hopes were held ont for the prosperity
10 the company in IN" current year
The president 81 the company in his
remark, to rtCcNholisrs presented glow
rngiy the results for the year ended p"ce'n-
Der 81 and IN regard 10 business for the
current year had this to- say The bust
ness Of the current year exceeds that
81 last. ard while II j. Vet tnp early to
make predictions ~" '"neral prp~-
pcr1ty Of tn. country iIst.He, a hopefIl
outlook This surfaC' indication %.
decpitfu'na--. however li'JI, % may have
been justified by the harm done 10 the
company's business from the failure
OF the flax crop. naturally aroused anew
that distrIst ~ Wall Street methods
winch mas uFANtIl llt'''lNsAh llN fh NIH't'll-
lator> and iVvestors away from the
security markets this vrlr In addition
To the disgust over ~" National Lead
episode liquidation was also caused by
entirely Illogical d"durt.puS from the
returns 81 "a" Cpuntrv'- national banks
a. 81 June ~ The returns showed IA
gain Of bat ~ Ter cent ma r'.-srv" ~ com
pared with the returns 81 March % and /
spectators saw IN this me- Improvement .
Of any con-eGueuc" whatever IN the /
general banking position. They fell ,nto
one Of tho worst of Wall Street habits
that Of looking Al figures alone. and en-
tirely overlooked a." fact that y - in
the period from March 20 July that
farmers most rcVuir" money "a their
business and borrow moot heavily in
anticipation ~ the harvest such
cIrtaIlment of loans as many critics and
Spectators proi-r~.i - expect would ,
have meant nothing more or ls-<s than |
sheer inability on th" par IT IA" farmers I
properly 10 cultiyat" and harvest their |
crops