New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-10-09
BONDS.
STOCK MARKET OPERATIONS.

cIUGh NhhhE4 UEEhA44ON0s
Stock market values were strong at the open
ing, while throughout the two hours Of trading
the trend OF quotations in the direction OF
q higher level. Notwithstanding the publication
u an extremely unfavorable bank statement.
ahe early improvement was not only maintained.
but Increased IN the last half hour OF business.
sn ezcellznt class Of buying being reported in
al parts OF the list, with the heaviest dealings
an St. Paul Reading. Southern Pacific, Missouri
Pacific Missouri. Kansas and Texas. Anal
ganated Copper Erie. the United States Steel
issues. Pennsylvania and Union Pacific. Sen
tiEnent on Union Pacific was favorably i'm
pressed by the companys report Of earnings
for the month OF August. showing an increase
IN gross earnings OF S276.40S and an Increase
IN net OF S269. 70s. There were no further
runors or reports regarding the Western rail
way situation and the possibility of settlement
Of the Northern Securities case. with the trans
Ser OF control Of the Northern Pacific TO the st.
Paul company, but in commission house circles
the idea that a settlement of this character
viii be made was accepted, and public operators
bought securities on the theory that develop
suents OF the utmost importance affecting the
railroads in the Northwest soon would be an
rlounced While there are ruInors In the Street
accounting. according to the speculative mind,
for the advance IN securities It is only neces-
10 turn 20 CO0ulLlOLS d4lcNliAA5 NAiS eCNNs~A
worth OF stocks and bonds IN order TO find the
real basis for the current upward movement
u remains TO be seen whether or not the con-
ditions that have so far governed the course Of
speculation VIII be strong enough TO bring
about further Improvement in values.
The weekly statement Of the associated banks
shows decline in reserve above legal require
ments OF s.. 276.525. compared with loss I'm the
preceding week OF $685.. 600. The loss in cash
holdings was heavier than indicated in Fridays
preliminary estimates. while the increase in
loans was smaller than generally expected. in
view Of the large expansion in stock market &C
fivity in the week In specie and legal tenders
the decrease amounted to S9156 500. reducing
the total cash holdings Of the Clearing House in
stitutions to S313, 9559 800, compared with $24o,
asO9OO a year ago Reserve, however, amount
sng TO SI2.63690O is SS94O,225 under the same
stem IN the corresponding week Of 1903 but
ST. 1OS5J0 above the reserve IN 1902. Loans
increased s. 955. 800 10 Las 9S9, 900 the
largest on record. and an increase as compared
with this time year ago OF S232. SS7,7O0 This
enormous expansion IN loans causes uneasiness
sn some circles. but the conservative bankers in
Che Street apparently are not at all disturbed
over the loan situation, as they know that first
class collateral is behind these obligations Of
borrowers. Il Is interesting TO note that the cur
rent loans are over S2JO,OO0.O0O greater than
they were at the period of the great bull market
OF 1902. The fact that the stock market did not
decline on the publication Of the unfavorable
bank statement indicates that stocks are not yet
sn weak hands and that Spectators are confident
that there VIII be no disturbance in the money
market this year. Notwithstanding the heavy
Withdrawals OF currency for the account Of the
West ana South. Spectators with small
gins. however. ought TO exercise caution in their
market operations. bearing In mind that all bull
movements reach point where sharp reactions
are inevitable. Among the strong features In
yesterdays market was 800" common, which
sold ct Sl%. gain for the week Of rs per cent.
Canadian Pacific on small dealings was also
strong. According to Street gossip. further ma
terial Improvement viii be made by Canadian
Pacific and the Minneapolis. St Paul and Sault
Ste. Marie issues.
The week just closed haB been one OF great
announcement In the business world. Conf
dence IN an Increasing volume OF trade In all
lines OF industry was more marked than at any
slime this year. while the actual demand from
consumers and the output Of manufacturing
concerns showed a marked gain as compared
with the earlier weeks Of the current season.
especially IN iron and steel Fear Of serious
damage TO the corn crop has disappeared owing
70 the fact that the cereal has reached Z point
that practically insures It against injury from
campaign win upset business conditions no
longer worries the business man. as It is con-
oeded that Roosevelt viii be elected and recent
uneasiness over the possibility OF disturbance in
the money market has entirely disappeared from
mems minds. In the iron market buyers are so
confident that general business will be better
after the first Of the year that they are willing
20 back up their convictions by making pur-
chases for delivery for long time ahead. These
factors and many others. including the expan-
E.on IN railroad earnings and bank clearings
naturally induce a confident feeling in Wall
Street ane prevent the development Of bearish
sentiment on the stock market, Notwithstanding
The fact that prices have enjoyed an almost un-
interrupted advance for the last three months
The fact that the public Is becoming more OF
a factor IN the market suggests 10 MANY people
the idea that the bull movement is on its last
legs but go Tar there has been a total absence
o. the wild speculation which generally marks
the END o. bull campaign. and as a conse-
Quence the best observers OF the Street are not
yet ready % predict a speculative collapse
accommodating the decline IN bank holdings
OF this centre there Is not the slightest indica-
uon q hardening tendency In the money mar
hei ana u rates should advance the upward
movement win be followed by gold imports from
London or Paris. A large volume Of exchange IS
being created BY the outward movement of cot
ION, while In addition 20 this factor az m IN.
fuence In strengthening our financial situation
N-.IDre Ia beginning, 49,,