New-York tribune., 1905-08-18
STOCK MARKET OPERATIONS.

Although there were heavy profit taking sales
In yesterdays stock market. the general course
Of values was In the direction Of higher quota
tions. the buying being sufficiently large TO
absorb the offerings of holders who were anx-
ious to convert paper profits into cash. Indeed,
the buying power stronger than expected,
especially in the case of many of the high grade
issues, which generally are admitted to be sell
ing for much as they are worthy intrinscally.
The fact that some securities are at high figures
does not deter further operations for the rise.
Bull markets governed to certain point by
the actual worth Of the securities, but beyond
that they controlled by speculative enthusi-
asIn, which is most potent influence in Wall
Street, especially at time when business condi-
tions sound, when the crops promise bounti-
full harvests and money conditions present no
sign OF hardening. Furthermore, it should be
borne In mind that the most powerful capital
lists in the country are working for higher prices
These interests have stocks to dispose of at
better figures than any yet recorded. and nat
uraly they will throw the weight of their In
fuence the bull side Of speculation
Total transactions ran above 100000 shares
with the heaviest trading in Amalgamated Cop
per, American Locomotive, Atchison. St Paul
Erie, Missouri Pacific, National Lead PennsyI-
vania, Tennessee Coal and Iron. Union Pacific
and the United States Steel shares. Union Pa
the list, but the large amount of realizing in
| the issue prevented important gain. although
| its closing price &c above the final quota
| ton in Wednesdays market The steel and iron
securities in good demand, also the rail
way equipment shares particularly American
Locomotive common and preferred. The buying
| of Locomotive preferred for the account of
substantial interests, and III well informed mar
ket circles it thought that the price would
move TO materially higher level The company
is doing large business its record has been
most excellent and its ability always to pay its
preferred dividend has never been questioned.
Buying by powerful pools was a feature of the
day on the Exchange, operations for this
count being we'll distributed throughout the list
Of active issues. including a number of the
called cheap priced securities as, for instance,
C.Acago Great Western Erie, Rock Island and
St. Louis Southwestern. General news develop
ments were favorable The reports from Ports
mouth were bulshly interpreted by Wall Street,
the advices from the crop regions of the country
indicated even better harvests than promised
by the recent government report, and railroad
earnings, as a rule. showed encouraging gains
over the corresponding period a year ago. Money
remained easy, but sterling exchange was firmer,
the advance in rates being made in spite of
buying in the local market of securities for for
eign account.
1t is generally believed that important aid
restraining a material advance in money will
be furnished by the trust companies. 1t is the
general practice Of the trust companies de-
post their temporarily idle surplus funds
with the banks the same miscellaneous cor
porations, firms and individuals. and Il is the
rule OF the banks to allow per cent interest
on trust company accounts. Until the rate for
call money goes above per cent the trust COM
panies will let their money stay with the banks
but just soon as they obtain more for it
in the call money market they VIII become
large lenders instead Of bank depositors When
call money goes to per cent there doubtless
will be wholesale shifting Of call loans from
the banks to the trust companies an operation
which Will involve drawing by the trust COM
panies on their deposits in the banks TO pay of
loans previously made by the latter iustitu-
tons, which they-the trust companies-wiu
take over The cash holdings OF the banks VIII
not thereby be diminished but their deposit Ia
bilities and simultaneously their reserve re-
quirements will be reduced. Thus cash tha.
has been locked up will be liberated and be-
come available for financing the crops. TIN.
leading financial interests are anxious To- avoid
any disturbance in the money market this fan
and they are said TO be confident OF their abiI-