New-York tribune., 1905-08-29
Enlisted
Closing prices yesterday of active bonds dealt
STOCK MARKET OPERATIONS.

After early weakness, in the course of which
MANY of the prominent issues declined from to
per cent from Saturdays closing prices, quota
tions moved toward higher level under the in
fuence OF buying, inspired by the report from
Portsmouth that the japanese had agreed to
waive the question of indemnity and would cede
the northern half of the island of Saghalien, the
price to be determined by arbitration. This re-
port naturally encouraged the idea that perma-
nent peace soon would be established, ana as a
consequence traders who went short Of the mar
ket in the morning operations made haste to
cover their contracts, the results Of which were
advancing prices and increased interest from
commission house buyers While the large early
losses were not, in the greater number of issues,
recovered entirely advances from the low level
of per cent and above were common. At the
close the heaviest net declines were recorded by
Amalgamated Copper, which, in the forenoon
dealings, was affected to some extent by the
Boston operators latest talk on the copper
shares; by New-York -Ceptral. Pennsylvania,
Reading and the United States Steel shares.
Canadian Pacific, which again was in good de-
mand on the initial decline, closed at a net ad-
vance; also American Smelling and Pacific
Coast, the latter advancing over 3 points Union
Pacific ended the day unchanged from Satur-
days last quotation. The resumption Of divi-
dends on the preferred stock of the Republic Iron
and Steel Company was without material effect
the stock the announcement of the directors
action having been discounted in recent trading.
At the close the market dull without def
mite trend. later reports tending to deny the
earlier rumors regarding the reported decision of
Japan to waive indemnity serving to cool to
some extent the enthusiasm of the speculative
element Money easy, while sterling was
without important change.
Compared with this time a year ago bank
cash holdings are much lower, is also the
reserve above legal requirements, while the loan
account is over $10OOOOlOOO higher. Part of the
money now held by the Clearing House institu-
tions is owned by Japan, and is subject to call
at any minute. Moreover the local banks doubt
less will be called upon to help finance the
readjustment of the finances of Japan and
Russia incident to the ending of the war.
which the leading banking powers of the world
believe will be accomplished this fall while
throughout the autumn months there will be an
unusually heavy demand at this centre for cur
rency in connection with the years harvests
Notwithstanding these factors, including the low
position of the bank reserve. the best informed
in Wall Street look for trouble in the
money market in the remaining months of the
year. while they also expect to see still higher
prices for securities. 1t is impossible to make
any sort of accurate forecast as to the dura-
tion of the current bull market in securities. 1t
is impossible, in view of the confidence of the
leading financiers that there will not be high
money rates in the fall, to make a prediction
that there will be trouble in the money
ket. yet many people beginning to
ercse caution doubtless remembering that
even the ideas OF the best men in the Street at
times have not been borne out by developments
in the financial situation Furthermore, many
people bearing in mind the experience of
the past. when. despite the most optimistic talk
regarding the future of the stock market, prices
have suddenly declined, thus marking the end
for the time of bull operations in securities.
Present indications do not suggest that this time
has arrived in the current market. Caution,
however. in Wall Street operations is always
wise.
1t is not unnatural TO believe that in the
course of the next few months there will be a
readjustment to lower level of a number of
the high priced issues, while there is good rea-
son for the belief that in the same time there
will be further appreciation among the low
priced stocks, which, as yet, have not measured
in their market movements the improvement
that has actually taken place In their intrinsic
worth in the last twelve months. OF course If
there should be some radically adverse change
In the situation affecting the actual position of
money and business in this country there would
! be little prospect of an advance in the cheaper
priced securities At the moment there is no
/ indication OF a change of this character and as
! underlying conditions unusually sound there
appears little probability of any serious dis
/ turbance in any direction. The money market
| is controlled by the most powerful financial in
| terests. and as these interests still are on the
bull side Of the securities market the i'm
! mediate chances Of much higher rates for loans
except perhaps. passing fiurries are extremely
unpromsing. This is the sentiment of the
largest hnanciers in the Street. and it is senti-
ment that should not be dsregarded-