The San Francisco call., 1910-07-06
DE EMAND LOAN
STOCkS.DECLINR

N6N 1Ohh, July o.--lSHiaHo
loan stocks showed extreme pros
tration today and prices were al
lowed TO run downward without
any sign Of support by important
banking and financial interests.
The amount of. stocks marketed
was not large. The severity of
the extreme decline was notable
on that account.
The bear party in the market
seemed encouraged by the facil-
ity with which they were able
to procure stocks to cover the
short transactions left open after
last weeks break in prices. Hav-
ing covered over the three days
holiday interval, they were pre-
pared to put out fresh short lines
today. The demand was SO languid
that the selling was easily ef-
fective It was suspected that
there was some reselling of stocks
bought on the drop last week for
a profitable upturn in the market,
or purely for purposes of sup
port to check the Generalization.
The signs that these stocks were
coming back on the market were
taken TO mean that the larger
financial interests were not COM
mitting themselves to any effort
to advance prices, or even sus-
tain the market at recoveries.
PRICES RECOVER
The consequence was a drop to
near last weeks low level of
prices early in the day, but an
arrest short of that, and a recov-
cry later.
The renewal of the depression
was not accounted for by any
striking new developments in
the situation. The most impor-
tant item of news was the death
Of the chief justice of the SUI
preIne court. Probably no period
in the history of the supreme court
has seen questions Of more vital
and peculiar interest to corporate
wealth awaiting the decision of
that tribunal The extreme view
OF the pending Sherman law cases
before that court is that the very
existence of corporations is
wrapped up in the form. which
the decree may take. Even where
that extreme view is moderated,
the opinion is general In finan-
ciaI circles that definite plans for
forward action involving the cor
porations is held back and will be
delayed until the supreme court
has set its definite interpreta-
tion upon the Sherman law. I'm
less a special session OF the SEN
ate is caRed to act on early ap-
pointments to fill vacancies on
the supreme bench. a further de-
lay fin the hearing of the cases
until after December is regarded
as unavoidable.
CASH HOLDINGS SHRINK
Another item in the days dis
quietude was the large shrinkage
in cash holdings of the banks dis
closed by the Saturday bank state
ment. A loss of nearly $4,000
600 IN the actual cash holdings
was diflcult to account for. A
ss.S13,s00 loan expansion was not
consistent with the known facts
Of the drastic stock market liqui-
dation, although the semiannual
settlements might confer a plaus-
ible explanation of the loan item.
The cash item, however. caused a
supposition that outside banks
had drawn very heavily on the
New York balances. and this di-
rected renewed, attention to the
possibility of further requirements
to conserve the interior banking
position.
The easing discount market in
London and the downward course
of foreign exchange rates wakened
discussion of possible imports of
gold.
Bonds were irregular Total
sales, par value, s1.760,000.
United States bonds were--un-
changed on call.