New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-31
BONDS.
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Weakness that developed in the opening deal
tngs in yesterdays stock market was ascribed
by traders to the heayiness on the London Elk
change, 10 the talk of a strike in the soft coal
fields and the probability of the passage or
the Stock Transfer Tax bill in the State legis-
lature These reasons may have warranted SELL
Eng for quick turns but they presented no good
argument for a sustained decline in values,
reflection Of which seen in the subsequent
operations which were accompanied by rising
values in the greater number Of securities
Wall Street professed TO be much alarmed over
the proposed stock transfer tax. The Street
also showed much concern over the decision of
Congress 10 levy a similar at the time of
the Spanish-American War. but the imposition
OF that tax did not 10 discourage opera
tions in securities while it proved no hardship
( 10 the customers of commission houses. who had
10 do the paying. The brokers merely will add
the tax TO their commission. and the extra
charge will not deter any one from specializing,
even though the Spectator may believe that
the tax is unjust one At any rate, Ameri-
investment values will not be upset. so
Wall Street may as well cheer up a bit. In the
last hour the general market showed decided
Improvement under the influence of good de-
mand from the shorts and support from SUBJ
stantal speculative interests.
While the majority of the active list closed
fractioualy under the last prices of the preced-
ing cay. there was long list of net advances.
including the so-called speciaties and a few of
the prominent shares, as, for instance, Allis
Chalmers preferred Colorado Fuel and Iron.
Consolidated Gas. Republic Iron and Steel. Rub
Der Goods, Twin City 800" common. Pennsyl-
vania, Tennessee Coal and Iron, Delaware and
Hudson and Delaware. Lackawanna and West
ern. The last named issue on small dealings ad-
vanced over points the announcement that
the div idend rate had been raised to a 10 per
cent basis. In the morning operations there
an excellent investment demand among the high
grade issues, New-York Central, st. Paul Union
Pacific and Canadian Pacific being features The
inquiry Cor Canadian Pacific comes from inter
ests who are firm believers i'll the property and
purchases represent investment operations
rather than manipulation. The stock is advanc-
ing toward higher market level on its merits
and the movement should not be confused with
the speculative dealings in such issues as Twin
City and Duluth, South Shore and Atlantic
stocks which traders are trying 20 advance as a
result of the FIRST class buying in Canadian Pa
cidc. There is an investment pool in the latter
stock which has connection with the spec
ulatiye side of the issue. although. of course
Spectators are taking advantage Of the invest
ment buying to make money on the long side
Of the security.
A number OF operators have been fighting the
advance in securities prices for several weeks,
and. according 10 the belief of the best informed
observers in the Street there is still a large
uncovered short interest for the account OF
traders who refuse to believe that the bull
speculation can be carried much further. To
some minds it may appear dangerous TO buy
stocks at the current level, yet the leading
banking. railroad and speculative interests are
buying securities at present prices in the Arm
belief that higher quotations than ever before
recorded viii be seen in the course of the year.
It is well note that prices recover easily after
all speculative reactions, and that on every de-
cline new buyers come into the market, while
actual investment purchases are heavy even il
the shares that yield less than 1 per cent
Bearing in mind. therefore that there is large
amount of idle capital seeking investment at "a
time when the more important financial inter
ests have IN mind plans that call for q sustained
bull market for securities il ought readily to be
seen that the advocates OF lower quotations
show poor judgment in opposing a rising mar
ket at the moment In Wall Street man who
moves against the tide seldom makes money.
The fact that the market has presented greater
reactions in the last fortnight than at any time
since the so-called Lawson slump of December
does not indicate that big bear movement is
developing; indeed. this reactionary tendency
strengthens the position of the bull element and
insures better prices in the future.
In view OF temporary higher rates for money
irreguiarity and chances for quick turns on
the short side. are likely TO be seen in the course
OF the next few weeks. The neophyte in specu-
lation. however. would better leave the short
side alone and furnish his broker with big mar
gins in operating for higher prices Prepare
tons for the April disbursements. together with
the first payments on the new japanese bonds.
doubtless viii cause shifting of loans ard a
hrmer market for both call and time money hut
there is no possibility OF stringency at this
centre, there is a large amount of foreign
money ready 70 be put out on time and call
contracts. 1t is probable that the April interest
and dividend disbursements will seek reinyest-
nnent at once. and il is likely that a large pro
portion Of the money paid japanese loan ae-
count viii remain in the local banks to be used
in payment Of japanese accounts in this coun-
try, and as a consequence there VIII be no loss
IN the country's bank holdings and no disturb
ancs in the money market The outlook for
money in the balance of The current year IS
extremely satisfactory. beth for the lender and
borrower. Owing 10 the increased activity in
trade throughout the country, rates doubtless
Wiil rule at better figures than they did in 1904
but not 50 high as TO cause any hardship among
commercial or speculative boz rowera-