New-York tribune., 1905-08-11
sCnusted.
Closing prices yesterday of active bonds dealt
in, with net changes follow
STOCK MARKET OPERATIONS.

After early frregularity in the course of which
there were number of sharp declines in values,
the entire market moved toward a higher level
under the influence of buying by the leading
speculative interests and commission house
traders. The standard investment shares were
features, especially Delaware and Hudson. and
Delaware. Lackawanna and Western which
made new high record prices at 224 and 46S13
respectively, closing at net gains of 15a4 points
in Delaware and Hudson and 1872 points in
Lackawanna. There were no new developments
affecting the upward movement in these issues
but the report was put out that the Delaware
and Hudson had passed TO the control of the
New-York Central and the Pennsylvania AL
though this rumor was accompanied by active
buying of the shares of the last named com
panies. there no substantial reason to be-
lieve that there had been any change in the con-
trolling interest of the Delaware and Hudson
property. There is little of the stock in the
market available for speculative purposes. but
It is likely that the large increase in its price
in the last few days has brought out certain
amount of the stock that was bought when III,
price selling far below its present Quota
tions. The supply of Lackawanna is even lighter
than that of Delaware and Hudson and as a
consequence there is practically no limit to
which its price may advance in a market such
as prevails at present. New-Yorl< Central gained
for the day 32s, Illinois Central gained 6lL 81
Paul gained 21s, Jersey Central gained 9 New
Haven gained 5&, and Atchison gained / The
iron and steel shares were relatively heavy. I
Total dealings were much larger than recorded
in the preceding days of the week transactions
were better distributed, and public interest was
more pronounced. The fact that the high grade
issues were in such active demand naturally in
creased confidence in the theory that the bun
market had not yet run its course As Vet
there has been little speculative activity IN
the cheaper stocks.
Government figures of the condition Of the
crops were published yesterday and if there IS
no radical adverse change in conditions govern
ing the growing grains in the rest of the crop
year the harvests of 1905 will be among the
largest in the history of the country Wall Street
men know the meaning of favorable harvests
Business men in general know that the greatest
source Of the country's prosperity lies in the
agricultural section of the United States. while
the ordinary speculator fully appreciates the re-
lationship between the crops and securities
values. 1t is contended in some circles that the
big crops already have been discounted in the
stock market. 1t is true that in the greater
number of cases securities are selling for more
than they actually worth az invest
ments (unless it may be assumed that in the
future we are to have permanently higher
interest return on American investments) but
this does not deter the speculative element from
buying at ruling quotations. 1t is argued that
money is cheap and that business is prosperous.
hence IT is concluded that values must continue
to advance OF course, the market will sell
down one of these days and perhaps the time is
not far distant when a good sized reaction will
develop. There has been a large distribution Of
stocks in recent weeks. The, larger interests do
not hold nearly many securities in their
speculative accounts they did a month ago
Inasmuch the government has withdrawn
a large amount of its deposits from the national
banks. the Secretary of the Treasury may con-
slider IL incumbent him TO aid the money
market when the demand from the crop regions
for currency becomes heavy. There have, in
deed. been intmations that he would again per-
nit the pledge OF State and municipal securi-
ties even railroad bonds, against the remain
ing government deposits. thereby freeing the
government bonds pledged and permitting
their employment IN increasing the issue of ma
tonal bank notes. The notes the law explicitly,
says. must be backed by registered United
States bonds. coupon bonds not being allowed to
be used by the banks to guarantee notes issued
by them No matter what eXpedients or meas
ures may be adopted TO avert tension in money
It would appear that an extensive shifting OF
loans will soon be necessary in order TO release
cash now tied up in reserves, for in any event
forth fully TO meet requirements in financing