New-York tribune., 1905-07-16
sUnllsted.
Closing prices yesterday of active bonds dealt
STOCK MARKET OPERATIONS.

Stock market trading was light IN volume In
the two hours of business on movement of val
ues that showed great irregularity, with final
prices at small net gains in the majority OF
issues After the publication of the bank state
1nent, which made most favorable showing.
the tendency was in the direction Of higher
quotations, although there was no material in
crease in business. transactions representing. as
a rule the operations Of the board room element.
Commission houses were not active factors In
the days trading, while the more substantial
speculative interests were not actively identified
with the course of dealings. the larger number
of the so-called big being out Of town.
There was fair amount Of activity in Reading.
Union Pacific, Pennsylvania, Southern Pacific,
Rock Island st. Paul. Amalgamated Copper and
United States Steel common. London bought
both Southern and Union Pacific, while local
traders were bullish on these issues on the the
ory that the Union Pacific directors will in
crease the dividend on the stock this week and
that in the near future the Southern Pacific
common stock will enter the dividend column.
There is every reason to believe that Union
Pacific will be placed a per cent basis,
but there is no immediate prospect, according
to we'll informed interests, of a dividend dec
laration on Southern Pacific. Eventually
Southern Pacific may become first class in
vestment, but there many other
shares of greater merit that 1t is not likely that
there will be an enormous investment demand
for the issue. The present buying Of this stock
is wholly speculative in character.
The weekly statement of the associated banks
presented changes in bank holdings that ought
to bring cheer to the hearts of the operators
for higher prices in securities, reserve above
legal requirements increased $11, ,565, ,425, bring
ing that item to SO 523 250 compared with
S44. .563.350 at this time year ago and $13,-
27S,475 in 1903 Perhaps the statement Is better
than actual conditions but such a consideration
will not carry any weight with the Wall Street
trader although every in the Street ought
to know that bank statements are made up
a system that seldom reflects the actual position
OF the banks and that the operations of a few
institutions generally are responsible for the
important changes-changes which quite often
are nothing than the result of expert book
keeping. According to the known movement of
money In the week. based the interior cur
rency movement, the operations of the banks
with the Sub-Treasury and the receipts Of new
gold, the local banks gained trihe over
$3,OOO,00O, yet the Clearing House statement
shows a gain of S11, ,743. 700. the difference in
the real and estimated showing doubtless being
due in part to deposits from the trust COM
panies to the banks. The greater part of the
increase In cash was shown in the reserve
owing TO a contraction in loans of $3.50, 400,
which. with the increase in cash, accounted for
the gain of $4,713.100 in deposits. The cash
required against deposits increased only
$178,275, which, deducted from the gain in
actual cash holdings, left the increase in
reserve above legal requirements as stated
above.
Bank loans still are largely In excess OF the
amount reported at this time in preceding
years. and it is therefore likely that the Clearing
House institutions will bring about further con-
traction for the purpose OF strengthening their
reserves at the time when the demands Of the
New-York money market must OF necessity ex-
pand. 1t is not at all unlikely that part OF the
increase in cash holdings due to the receipt
by the banks OF funds from out Of town banks
which will be paid into the United States Treas
ury under the call of the Secretary for national
bank deposits. The large increase in cash
should therefore not be considered an indica-
ton Of permanent movement Of money to this
centre. The demand for funds from the West
and South in connection with the harvests will
not develop for several weeks but it is not prob
able that the beginning of the movement will
find the local banks in a particularly strong DO
sition to meet the inquiry.