The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-28
FINANCIAL NEWS
And COMMENT
Market Lapses Into Dulness,
without Losing Underly-
ing Firmness.
SLIGHT GAINS OVER FRIDAY
Cheerful Impression Caused by
Assurance Dry Goods Trade
Il Sound.

After a brief squirt or activity at the
opening the stock market lapsed into
dulness. without. however. losing anything
Of its appearance OF underlying flrmness.
Closing quotations. while not up to the
top OF the day, showed slight gains over
fridays close Tho development Of
rather pronounced heaviness In the Rock
Island securities. and particularly in the
collateral trust 49, which declined to
within a fraction Of the lowest, attracted
q certain amount OF unfavorable COM
ment. Another feature for which no
plausible explanation was offered was q
general rise I'm the oil stocks IN the out
side market. a cheerful impression was
created by tho assurances given by the
weekly review of Marshall Field 4 Co.
that despite the Clahin failure conditions
in the dry goods trade are fundamentally
sound and that the prospects are Tor
good fan trade.
The weekly bank statement attracted as
much attention as such documents usu-
ally do when the surplus reserve Is run
ming over $50, 10000 A considerable
loss IN cash was obviously due to the
gold exports and the collection OF the
income tax. Loans, however. were re-
duced which is not usual toward the end
Of the month. In the present case the
decrease II attributed to caution In maxi
ing commitments inspired by the Claim
incident
From the stock market point OF view
las, week was an eventful one. 1t Is prob
ably many years since the financial dis
trict has been confronted with such an
aggregation OF important developments
affecting the financial situation. The vari-
Gus supreme Court decisions handed down
on Monday alone provided a wealth OF
material for consideration. In addition
several industrial and railroad companies
either reduced or passed their dividends
There was another Hood OF talk from
Washington on the business situation OF
the kind with which the country has been
plagued for some time past. And on top
of all this and overshadowing all else
came the failure OF n. Il. Claim Com
pany, the greatest commercial disaster In
recent years. II Ia possible that the Sc
curity market has not yet had time to
digest fully all these matters so suddenly
thrust upon Its attention. Perhaps II IL
too early to estimate the uttermost pos
aibilities contained In the last named hap
pening and their effect upon sentiment In
the financial and business world. And yet
the composurc which the stock market
has exhibited so far was most reassuring
and was undoubtedly highly significant.
As a result of all these happenings the
deadlock In the stock market was broken
and OH the down side. Prices declined to
around the levels OF the year low, but
a prompt and under the circumstances
impressive recovery followed Immediately
Making allowances for the accumulation
Of factors calculated to undermine rather
than strengthen confidence In the Invest
ment situation and for the stimulus giver
to pessimistic thought. an altogether in
significant amount Of actual liquidation
took place. What selling OF long stock Their,
was appeared to originate wholly in thu
commission houses. where weak long &C
count OF some dimensions undoubtedly eX
isted. From every aspect the stock mar
ket appeared TO be an entirely natura
affair For many weeks the outstanding
feature OF the situation has been the dis
inclination of holders to part with thei
securities even when under pressure
What occurred last week once moro &C
centuated this feature In an impressive
way.
The foreign markets ruled dull and un
by London on the news OF the Claim fall
ure, but the present speculative position
In Americans on the other side is ex
tremely limited and cable business has no
been factor here for many months
Whether more Is to be expected after tn
turn OF the year Is another matter. Europ
appears to be still concerned over the i'm
portant new financing pending abroad an
on this score reports are distinctly en-
couraging. \ successful fotation OF tn
first lnstalment OF the French Government
loan on July seems to he assured. Fo
the next few days the foreign market
will be engrossed with the important mid
year settlements. Additional heavy gol
shipments last week were probably mad
In connection with the preparations 10
these payments and were perhaps more @
a convenience than an actual necessit,
The big foreign banks are now fortifie
to point that does not suggest any kee
demand for more gold on their part
10. therefore, considered likely that th
outflow Of the yellow metal has been CON
Melted