New-York tribune., 1905-03-02
BONDS.
STOCK MARKET OPERATIONS.

The stock market recovered its equilibrium
yesterday. There were hesitancy and irregularity
in the trading and in the movement Of prices
until the last hour. when there an expan-
sion in transactions and a sharp advance in
prices The closing figures generally the
best of the day and likewise were about equal
TO the final prices of Monday, that the slump
OF Tuesday was effaced. The shake-down of
Tuesday was probably beneficial to the market.
At any rate It improved its technical position.
for il eliminated weak holdings and provided an
opportunity TO those who had been awaiting a
reaction before coming into the market For
another thing II proved anew that the market
possesses ample powers Of absorption. and there
fore was calculated TO increase the faith of the
public in the stability OF values The public
has recently shown a growing interest in secur
tties and it is reasonable to suppose that the
events of the last two days will impel it to in
crease its commitments. AS for professional
operators the presumption is that they will not
ebate their activity, but will seek as energeti-
caliy as ever for profits.
While there were other issues in which trans
actions were greater the trading in New-York
Central and Union Pacific stocks and Union
Pacific convertible bonds WAS intently watched
as probably containing special significance 1t
was the belief that the absorption of Union
Pacifc stock and of the bonds which may be
with the New-York Central and its affiliated
lines. which furnished an explanation of the
demand for and strength of New-York Central
stock IF the control of the Union Pacific has
changed or is TO change 1t IS not certain exactly
where it viii be lodged, but possibly Chicago and
northwestern bonds will be exchanged for Union
Pacific stock while New-York Central bonds will
Re exchanged for Northwestern stock. Business
reached heavy totals in other leading stocks like
Pennsylvania. Baltimore and Ohio, Erie, Read
ing. Louisville and Nashville, Atlantic Coast
Line and ST Paul and substantial gains were
scored by all these issues. The United States
Steel stocks and Amalgamated Copper were
freely bought and moved UP in price Sugar
Refining was another industrial which was in
gooa request Brooklyn Rapid Transit was
taken in considerable amounts; also Canadian
Pacific and the 500 stocks. Canadian Pacific
cold ex dividend and ended at a net gain Of
point
The situation in money is now in sense I'M
propitious notwithstanding that the recession
fn rates has been interrupted. The somewhat
higher rates for call money reflect conditions in
the speculative markets rather than in the
money market. Call money is principally used
in carrying on speculative operations, and as
these expand and contract there is naturally a
reflection in the quotations for call funds AS
e rule the borrowers instead Of the lenders, de-
.ternlne the call rates. The borrowers bid for
the money the same people at auction
end their bids indicate the urgency the ex-
tent Of the demand for accommodation. There
has been distention in dealings in stocks and
commodities. and the consequence has beer
wider fluctuations in call money rates. There
have been no changes in time money rates mol
any restriction in the supply of time money
There is and will be plenty Of money, and there
Is not much reason to doubt that in due course
rates for both time and call money will work
down. It seems probable that the interior vii
he able 10 supply the need for money for tbs
spring planting without calling upon the inan
ciai centres for currency. There Will be ship
1nents OF small bills and coin to the crop regions
nut these VIII probably be fully offset by remit.
tsnces or money I'm the regular order from those
regions. An actual termination of the flow O
cash from the interior is not expected before
midsummer Offerings Of commercial paper ar,
comparatively light, showing that merchant.
and manufacturers have resources of their own