New-York tribune., 1905-07-13
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market were
moderately heavy in volume on a movement of
values that tended in the direction of higher
quotations in the greater number of securities
in the greater part OF the day. In the early
dealings there were some declines from the
closing figures OF the preceding day. but offer
ings were quickly absorbed, and before the noon
hour losses were recovered while in the after
noon trading the entire market exhibited de-
cided strength, with the greatest improvement
in Atchison, Reading, Union Pacific, American
Smelling, United States Steel preferred, Great
Northern preferred, Northern Pacific, Baltimore
and Ohio Canadian Pacific, St. Paul. Erie the
local traction shares, Southern Pacific and
Tennessee Coal and Iron. Net gains of l per
cent and more were common. The favorable
condition Of the crops. as shown in the govern
ment's monthly report. naturally was a bull in
huence on the railroad shares in the local mar
ket while in the market for American. securities
abroad the Importance of the crop situation as
a factor on the value Of our stocks and bonds
was reflected in improvement in prices. All In
dications point TO bumper harvests IN the cur
rent year. except in the case of cotton. Large
harvests will require large amount OF money
in connection with their financing, and of
course. the burden of the demand for money to
move the crops will fall New-York. While
there was not a large inquiry from commission
houses in the day, the more substantial interests
were active buyers and the shorts did consid-
cradle covering, especially in the afternoon,
when prices advanced in a manner that sug-
gested further Improvement in quotations in the
co,1rse of the week Strength in Union Pacific
was based on the advance in Northern Pacific
and Great Northern, the last two issues ad-
vancing IL and s points respectively, rather
than on the expectation of an increased dlVl-
dend which will not be announced before the
end of the month. At the close prices, as
rule. were at or near the best figures Of the
day
present speculative conditions in the stock mar
l,et are sound. but if there should be radical
change in the monetary situation at this centre
there doubtless would be passing material
decline in securities values Commission
houses while not heavily loaded with stocks,
are carrying more securities for customers than
at any time since early in the year, and, OF
course. If there should be a sudden jump in
lending quotations there might be some trouble
for the accounts that are being handled on
margin The best informed interests do not
look for an immediate change in the money
market but they do, nevertheless, predict
period of stiff rates in the fall, when the de-
mand for funds in connection with financing
the harvests will, as usual, exert considerable
story that the West and South are rich enough
TO handle the crop season without calling on
New-York for assistance is again going the
rounds This tale has been used from year to
year in the hope Of helping market quotations
for stocks but the movement of the money mar
ket always has shown that there has been no
good argument for the expectation that this
centre would not be called on for currency. The
Western and Southern banks it is true, have
more deposits as a general thing than at any
other time their history but the greater part of
their money is deposit in New-York, and the
withdrawal Of their accounts will take place
in the crop moving season, the result of which
will be reduction in the local bank reserves. The
banks will be able 10 increase their reserve
above legal requirements by calling loans. and
as loans are unduly expanded 1t is likely that
there viii soon be material contraction in this
item OF the Clearing House institutions.
There are many good reasons for holding first
class stocks and bonds despite the prospect OF
higher rates for money, but Of course the
trader on small margin ought to exercise great
caution in his operations from now on The
best argument in favor of higher prices is pre-
sented in the fact that the larger interests, in
Guiding a great many tied up underwriting
syndicates, still heavy with stocks which
they hope TO market before the fall season
This they may be able to do. General condi-
tions affecting the actual worth Of securities
are in their favor, while the public, so-called
is well supplied with funds for investment and
speculative purposes 1t is not expected that
the money market will advance for several
weeks at least, and there is reason TO sup
pose that there viii be an adverse change in
the country's industries in the future
There are promises Of increased dividend dis
buTsements by number of roads, there are in
dications of a desire the part OF investors
to take good stocks and bonds and there is a
growing belief that no matter what the money
market may do this fall prices for securities
eventually will sell higher. although they may
decline in the autumn These considerations ap-
pear 10 induce buying at the current level for
= short turn, If for nothing more.