The Washington times., 1912-07-21

NEW YORK, July n. 1912-The con-
trolling influences In last weeks Sc
curity market were a violent break In
wheat, which carried the cereal to much
the lowest prices of the season, the
cessation OF the mysterious liquidation
In stocks, which depressed sentiment
and securities as well in the preceding
interval and the complete restoration OF
the deficient banking reserves. or the
three, the break In cereals was, OF
course, the most important. for 1t re-
fiected an Improvement In fundamental
conditions. Crop advices, particularly
those coming from the Northwest, were
extremely optimistic, white the thresh-
ing and harvest returns from the South.
west are reported as very much better
than the earlier expectations warranted
Stocks were extremely dull, the vol
ume Of business falling nearly fifty per
cent below the moderate total OF the
preceding week, but prices ruled con-
sistently strong and the majority of the
list made substantial improvement
without question the betterment in crop
conditions was chiefly responsible for
the upturn In securities, but this oper.
ated along the Ines Of forcing the short
IlttTtSt u CONtT, tHdH VI lIluuC-
ing the public to buy. In fact, II you
take the average stock commission
broker at his word you will conclude
that but for the traders the business In
securities has come to a standstill. II
is not so bad as that, Of course, but
advancing prices on a falling amount
of business Is not a sign that brokers
like. 1t usually indicates pure profess
sionalism.
Theories of the Market.
Whether or not the recovering move
ment has anything more substantial be
hind 1t than the activities of traders and
the covering of shorts. is a matter oi
conjecture. The limited scale onf deal
ings, the continued apathy of the
bond division and the general at
attitude Of the so-called importat
ever, of taking a definite position
would Indicate that 1t was little more
than a professional maneuver and in the
earlier sessios of the week the opin'
ion was quite general that the upbid
ding of prices was to establish higher
level for future selling. This opinion
was predicated on nothing more consid
erable, however, than the cessation OF
the expert liquidation, which was the
distinctive feature Of the preceding
week That selling terminated as sud
denly and as mysteriously as 1t begar
and prices hardened Immediately.
1t must be admitted, however, thai
this theory underwent some modifca
ton as session succeeded session with
prices holding firm and advancing
Then the Street heard the report tha
, an accumulation OF securities was II
progress, which some veracious chron
icles associated with the home looming
OF Mr.. Morgan. and others with th'
next Government crop report, which II
| IL harvest conditions improve in th'
next two weeks as they have in th'
last two. In connection with this lat
ter theory, It is pointed out that by tn,
| time the next crop report Is due tn,
candidatec of the old parties will prob
ance and the Progressive party will
| have held its convention, Congress will
have adjourned, and this may afford
little opening for market activity.
Puzzling Over the Future.
| It must be admitted that in bankin,
circles, one finds very little indeed Il
encourage the belief that a sustained
and confident buying movement is like
| ly, until much later in the season a
best, and perhaps not before a definit
| line is obtainable on both the harves
outcome and the Presidential campaign
And aside from these features, tn
| banking element Is much perplexed owe
| the possible effects Of the remarkab abl
liquidation in consols and gilt edge,
securities in London, and the almos
total estoppage Of the buying Of strc