Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-04
TESTING OPERATIONS
TRADING ON CHANGE REPRE-
SCENTED SMALL VOLUME.
Board Room Traders Attracted Little
Acknowledgements of Week
Reflected Little in Market.

NEW YORK, June 3.-Todays small BUSH
ness in stocks represented nothing more
than testing operations by professional
traders. These operators were inclined to
take the ground that yesterdays explosion
in the Equitable Life Assurance Society in
dicates the worst that might be looked for
from that troublesome episode in its ef-
feet upon the stock market. The outcome
was pretty definitely foreseen yesterday
while trading in the stock market was still
In progress, and 1t was assumed that the
usual rule would hold that speculative
operations had over-discounted an expected
event
The rise In prices of the first hour had
no other visible explapaton than this at
titude on the part of the board room opel'-
ators. They devoted some special atten-
ton to Reading on professed confidence in
a coming increase in the dividend on Cen
trail Railroad of New Jersey, and the Cen
trail of New Jersey stock was marked up
over points in consequence The demand
for Amalgamated Copper was associated
with the coming annual meeting on Mon
day and the circulation of rumors that
some sort of financial statement was to be
issued by the corporation at that meeting.
The board room traders attracted little
following in their ventures and prices sold
off again when intlmations got abroad OF
the unfavoIable character of the coming
bank statement. The $10000.0oo shrinkage
in the cash held was far in excess of pre-
liminary estimates based on the known
movements of money. The large decrease
was attributed to Withdrawals by the trust
companies in connection with some inn
portant syndicate subscriptions which had
been called in this week. Amalgamated
Copper rose to the top after the publiCa-
ton of the bank statement had spent its
effect, but the closing generally was ir-
regular and little changed from last night.
Total sales of bonds, par value, sl,20o0o0.
Doubt in Speculation.
Operators in stocks have had a number
of important happenings TO consider this
week but the conclusions arrived at have
not been well defined so far as they were
reflected in the stock market itself. Move
ments there indicated rather further
doubt and unsettement.
Dealings have been on small scale and
fluctuations of prices have been irregular
and poorly maintained. The neglect of the
market in the early part of the week was
attributed partly to the large number OF
absences of brokers on Monday who made
an extended holiday from last week over
the Decoration day closing. But the return
to the floor of the stock exchange of absent
members failed to bring any revival OF
interest. The going into effect on June list
of the New York transfer tax had some eff
feet in curtailng transactions of the purely
professional kind. such as rely on an ex-
tremely small margin of profit on large
number of shares to 'be turned over in the
course of each days trading.
The tax of 81 on the transfer of 100 shares
of stock bears a considerable proportion to
the small fractional change in price upon
whica this class of operators relies tor
profit ON transaction. Such operations
make up a very large proportion of the
total sales in the average days business at
the stock exchange
Affairs in the Far East.
OF the weeks events having an important
bearing on general affairs the decision of
the naval contest in the battle of the Sea
of Japan had an nspiriting effect, but 1t
was of only momentary duration 1t was
hoped that this event might relieve securi-
ties markets Of some part of the repression
which had held them in restraint. The pc
lief that peace would be the early result
was regarded with satisfaction throughout
the financial world.
But the after effects proved that the pos
sibiity of Russian success had peen oiliy
slig ntly considered in some purely sDecu-
lative operations by professional bears ana
their buying 10 cover was not followed up
BY any more substantial demand. Inc
heavy dealings in the bonds OF the Japan
ese government, which have been feature
of the weeks market in New York, were an
exception 1t was reported also that large
orders for supplies for Japan, which had
been placed in this country contingent upon
the clearing of Russian forces from the
Pacific, had been executed.
The disbursement of some of the Japan
csc funds on deposit in New York of the
proceeds OF loan subscribed here was thus
indicated and the necessity of their remit
tance to other money centerS obVlated-
Later I'm the week there was less confidence
In the conclusion of an early peace and a
consequent reactOnary influence was felt.
The Equitable Life Assurance case has
exerted marked influence of depression
on the stock market. The immediate chan
GELS through which this has operated on
stocks are somewhat occult and the mys-
terry has rather added to the effect on sem
tnlent than relieved It, The conditions
brought to light by this occurrence are be-
ueved not to help to the maintenance of
confidence in the financial world in general.
It is felt that spirit of caution is likely
10 be engendered
Bank Failures.
Recent bank failures and their causes are
placed in a list of factors working to the
same result. A process of overhauling
the part of bank directors and trustees of
financial institutions is regarded as a likely
consequence of such disclosures. Such
process is looked to to reveal any weak
conditions that may exist and there is a
disposition among spectators to await the
completion of the work, Meantime there Is
seine effect OF restraint upon the freedom
of outlay in their capital ventures, which
Is characteristic Of periods of great general
commence.
Fears are felt of possible mischief to
be caused by the play Of bitter animosities
involved in the Equitable controversy, and
there is an uneasy sense that the disputes
being waged there may be the extension OF
differences seeking adjustment in the rail-
road and other financial fields. The stock
market is sensitive to the dangers of con-
dict between great money powers from
costly experience.
The outlook in the iron and steel trade
is not regarded sufficiently assured to
awaken any effective demand for securities
affected by conditions in that trade lulI
in the trade is admitted and expressions
OF confidence from trade authorities in an
early revival have not counterbalanced
the influence OF this admitted condition.
There has been enough of unfavorable news
regarding the crops also to make that a
factor of repression. If not depression, on
stocks
The June / settlement induced a slight
rise for part of day in the call money
rate. but the money market has not been
the source of any depression in stocks.
The defcir in the governments revenue
for May receives attention and opinion In
financial quarters admits the necessity of
measures TO secure additional revenue.
The legislative discussion of ways and
means which must be undertaken to achieve
this end offers prospect of unsettlement
which is taken account of in the prevailing