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Show ' REACTION EVIDENT IH STOCK MARKET i Whether Cause or Effect of Change in Speculative Senti- nient Is Not Certain. CROP OUTLOOK BECOMING AX IMPORTANT FACTOR Complicated Situation in Eric's' Aii'airs Remains Strong Disturbing Dis-turbing Influence. NEW YORK, April 5.-A reaction?! ry ione was cvidcul in tho securities market mar-ket last .week. How far the cbauRe in speculative sentiment was caused and bow far effect of tlm check to the previous pre-vious advancing tendoucy of prices ifi difficult to discern. Some explanation of the read ion is found in The extent to which the advauco had rim, a process proc-ess which would 'Tieccssarily in course of time reach u limit in attaining the levol at which it- was inaugurated. Not only this, but. in accordance with tho 7'nvariablo rule of Kpeculative movements, move-ments, it would be expected to overrun itseJf and be affected by tho realization realiza-tion of holders who had over-stayed the movement and felt no disposition to hold during a possible decline. n Increasing attention is centering ou tho crop outlook siuco decisive influence influ-ence is expected in the shaping of the future from the year's field. The condition con-dition in which the planted wheat has come through the wintor is considered hopeful' private authorities of accepted responsibility agreeing in estimating a high percentage for that crop. The publication on Wednesday of this week of the agricultural department's official estimate of the condition on April 1 will bo aui important basis of reckoning for this vital question. Opinion on the financial situation -was shaped by the long-drawn out. struggle to adjust the" difficulties confronting con-fronting tho Eric railroad. Due allowance allow-ance was made for the peculiar conditions con-ditions which aggravate the troubles of the Erie, but this did not prevent unfavorable inference regarding the investment in-vestment situation to bo drawn from tho Erie's case. The-discount interest price of the maturing Eric notes shows the excess of the difficulties of that company in providing for the floating indebtedness. Jsevcrlheloss, in a list of 'more than two-score of notes issned by railroad and industrial corporations maturing at various periods up to four 3'enrs, the prices at -which they arc soiling show varying discounls in nearly near-ly all cases, and this although the rate of interest return is well above the prevailing intorest rntcs for time loans m the money market. Prospocts for the absorption of new issues of securities secur-ities arc poor from tho indication furnished furn-ished by this showing. Tho same conditions con-ditions are reported in foreign financial finan-cial contors, whore tho accumulation of banking reserves and easing rates for money acorn to afford small advantage for flotation of new issues. The honvy issiio of German and Prussian loans proved disconcerting to investment markets in all the great inonej centers abroad. Foreigu exchange in Iew York in consequence has moved in a way to Bnggesc a coming out-go of gold. The course of tho United Stntes government's govern-ment's revenues makes it evident also that lnrge further withdrawals of government gov-ernment deposits from tho banks are imminent. The treasury is expected to fortify itself not only against requirements re-quirements for government expenditures, expendi-tures, but. also for the customary aid to bo extended to tho money market in the fall, vhen the annual crop movement move-ment requires an expansion of facilities. facili-ties. The money market itself is quite undisturbed by" thse prospective requirements, re-quirements, but; the tranquil money market fails to afford any stimulation to the investment demand either for existing issues or for proposed new capital issues. j |
