New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-22
BONDS.
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Although the stock market was dull in the
two hours Of trading, prices were generally
strong. with net gains in the greater number
OF issues at the close. Expectation of favor
able bank statement induced covering Of shorts
in the early dealings. and a moderate demand
FOR the account of people who thought they saw
an opportunity to make a turn the long
side, while IN the last half hour this movement
was accentuatsd by the appearance Of the bank
statement, which showed. despite a decrease In
cash Of over 100000. a small increase in re-
serve above legal requirements. This increase
was brought about by q heavy reduction In
loans and deposits the falling off in the first
named amounting TO over $22.oOOoOO and IN
the latter to over S29yO00o00. The decrease in
cash and the loss In loans accounted for the de-
Gins IN deposits AS result Of all changes
reserve now stands at S13.044.275. compared
with So do. 725 IN the Same week last year. and
S14. 301. $50 IL 1902. In view OF the heavy eX-
ports Of gold IN the week the showing made by
the banks will be most gratifying TO the hnan-
cial community, while it ought to strengthen
confidence among spectators and investors in
the strength Of financial conditions at this CEN
tire. Activity IN stocks was confined to the
United States Steel shares, Pennsylvania,
Brooklyn Rapid Transit. Analgamated Copper.
Union Pacific, Atchison Reading and the Erie
nearly points on a fair class Of buying, in
Guiding a good demand from the shorts. There
news regarding the stock, but the an
nouncement that young Mr. Rockefeller had
been IN Pittsburg making q tour OF the cor
poration's plants appeared 10 create the belief
IN speculative circles that the Rockefeller in
terests were in control Of the concern. Other
especially strong features we're Reading. which
enjoyed net gain Of ? points. Erie gain Of
Tw-,rr-
gain Of ! point. Pennsylvania, ST. Paul and
Atchison enjoyed fractional Improvement. The
close was strong, with prices at the best OF the
day.
The fact that stock market values are only
few points above the low level recorded last
September encourages the belief in some circles
that the decline Of the last month has run its
course, and that, although there may be no i'm
pOrtant activity in speculation in the next few
weeks. quotations viii show improvement. Last
years long decline eliminated on September %,
when prices for the chief active securities av-
eraged SIS 50 From that time TO December %
there was a rally to sos 81 while in the latter
part Of January a level of 500 IS was recorded,
from which there was decline to S91 81 and q
recovery from the last point TO S97 IS April
IL IN the last month the decline carried the
average price under S93 In view Of the fact
that securities are generally held by people Of
large financial resources, il does not appear
probable that the professional element in Wall
Street VIII be able to bring about further seri-
Gus decline IN values unless there should be
some development which would brighten in
vestors into liquidation. If prices were selling
from 10 TO 20 points above the present level, the
current trade reaction and other adverse feat
ures in the general situation doubtless would be
effective IN depressing quotations. but as the
present level more than discounts dulness and
reaction IN the country's industries. there is no
good argument for a bear campaign in the stock
market. There is little reason for uneasiness
about the financial strength Of the country that
is able TO export over SJ00000O0 in gold within
month without causing disturbance in its
money market
Railroad earnings received last week for the
second week in May showed a loss in gross OF
over per cent, compared with the same
period a year ago, while gross and net earnings
received for the month of March presented a
small increase in gross. but a decline in net of
over 10 per cent the loss being due to the rise in
operating expenses. For the quarter ended
March 81, ninety roads reporting showed a de-
crease in gross earnings Of 81, ga, $50 and de-
crease in net earnings Of S14 154 Jog, or 1856
per cent In March year ago net earnings in
creased over 16 per cent, and from that time
until July earnings showed large increases
and from July until January net earnings
were generally heavier than in the pre-
ceding year. with the exception of August
and October. According to the reports re-
ceived from the commercial agencies bust
ness throughout the country is quiet, with
little prospect OF Improvement IN the summer
months. Weather conditions have not been
favorable 10 the trade and crop situation, tenn
peratures having been too cold TO allow free
distribution Of spring and summer goods. while
they have retarded planting and the growth of
crops already IN the ground. The serious strike
&C the masters and pilots OF lake vessels has
practically forced 4 suspension Of transporta-
tion on the Great Lakes, and as a consequence
the industrial activities that depend on lake
transportation have been injured TO serious
extent. Outside Of the trouble the Great
Lakes the labor situation is not alarming. All
the present uncertainties and unfavorable feat
uTes in the country's industries will not drive
the United States into bankruptcy or upset the
intrinsic worth OF solid American investment
securities.