New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-04
BONDS.
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Transactions in yesterdays stock market
showed a further contraction in volume as COM
pared with the recent heavy operations, while
the movement Of values exhibited irregularity,
with small net changes in the greater number Of
securities at the close. IN the early dealings
prices, as a rule. were strong, a number Of
issues enjoying striking Improvement. notably
Tennessee Coal and Iron, Colorado Fuel and
Iron and the United States Steel issues although
the gains in these shares were not fully main
tanned throughout the day owing to the pressure
OF realizing sales, which attracted by the
upward movement Heavy dealings in the
stocks named were not accompanied by i'm
portant news developments affecting the prop
critics but the speculative element believed that
the advance was warranted by the marked i'm
provement which is now taking place in the iron
and steel industry. A1nalgarnated Copper was
again leading active feature, but it failed to
exhibit strength. owing to the desire the part
OF traders who bought the stock at a lower level
ITO convert their paper profits into cash. Ac-
tivfty IN iron, steel and copper shares is signih
cant Of growing prosperity in the country's gen
eraI industries. and 1t therefore ought to exert
stimulating influence in attracting capital to the
stocks and bonds Of solid railroad and Industrial
corporations. While total dealings aggregated
a million shares, over eight hundred thousand
were supplied by fourteen issues, the chief feat
ures being Amalgamated Copper. Erie. Colorado
Fuel and Iron, Pennsylvania. Rock Island, Ten
ressee Coal, Union Pacific and the United States
Steel shares In the last named issues transac-
tions amounted to over two hundred thousand
shares with final prices showing a net gain Of
4 for the common and a net gain of q for the
preferred. Among the leading active issues
there were a few more net losses than gains.
Mone-- market rates q this centre were I'M
changed, while sterling exchange moved toward
a lower level. Notwithstanding the weakness
in foreign exchange bankers were not willing to
admit that there would be no further exports Of
gold but opinion in foreign exchange circles did
not favor the recent predictions that upward of
S25.000OO0 gold would be shipped in the course
of the next few weeks. That the Bank of Eng
land is not worried over the demand on London
for gold from Continental centres is reflected in
the failure Of the bank 10 advance its minimum
rate OF discount. despite a decrease in its per-
centage Of reserve to liability, as shown in its
weekly return which viii be found in another
column. In some circles it is thought that the
government viii soon make call on depository
banks throughout the country for government
funds but this prospect will hardly cause IN
easiness IN financial circles. Higher rates for
loans would be welcomed by the banks. while
they would not prove great hardship to Dor
advance before the end of the month but there
is no reason to look forward TO disturbance in
the loan market.
The position of the current stock market is
based on extremely strong foundations, and the
optimism Of Wall Street operators is therefore.
warranted by facts rather than theories and ex-
pectations. Unmistakable evidence Of improve
rnent In all lines Of the country's industries is
presented in trade barometers as for instance
The iron and steel business railroad earnings
and bank clearings. which infallible guide
posts in the commercial and mercantile world
Several months ago far seeing and observing
capitalists began 10 accumulate securities on
the theory that the depression in trade had run
its course, and that in the present autumn sea-
son marked Improvement would be recorded in
all lines of work, followed by activity in the
stock market the resumption Of negotiations
among railroads for further extension of the
community Of control policy and a tendency on
the part OF the public place its idle funds in
the attractive stocks and bonds of American
railway and industrial corporations. Business
has improved. money has remained easy and
public operators are accommodating securities
The fact, however. that stock market values
have enjoyed advances from the low points Of
the spring Of from 20 TO 80 points in the greater
number Of active issues leads some people to be-
lieve that present quotations adequately meas
Cre the change that has taken place in condi-
lions governing the intrinsic value of investment
and speculative issues. Doubtless this is true
in respect 10 a number OF stocks, especially the
non-diyIdend PAYERS, but in the greater number
Of solid investment issues prices, as measured
by investment yield, not quoted at an abnor-
nal level For instance, stocks which return
over Per cent-anu there many issues in
this market that yield something better than 4
per cent-are not ruling above a normal level
for investment issues a dividend return OF
per cent IS much the careful investors
should expect. Atchison preferred returns near
~ per cent at present prices. Baltimore and
Ohio preferred over per cent. Canadian Pacific
over ~ per cent, ST. Paul trife over 4 per
cent. Illinois Central AZ per cent. Pennsylvania
nearly Az per cent and Union Pacific preferred
about ~ per cent Louisville and Nashville
which returns less than 4 per cent. is selling
nigh enough, while the same may be said Of ST.
Paul preferred. Chicago Northwestern and New
York Central. which also return at present quo
tations less than per cent to the investor. In