New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-20
BONDS.
STOCK MARKET OPERATIONS.

Heavy selling OF American stocks IN the Lon
don market and active liquidation by foreign
houses IN ths local exchange were effective
factors IN attracting further bear pressure in the
esriy Nsw-York dealings. the result OF which
lower prices throughout the list in the forenoon
trading. with only unimportant recoveries in the
last two hours Of business. Foreign sales in this
market were estimated at upward Of one hun
ored thousand shares a large proportion OF
which was furnished by the United States Steel
issues; but as a rule buying the decline was
heavy enough 10 prevent Generalization. offer
ings being taken by an excellent class Of specu-
iators espe c!ally in the case Of United States
Steel rrefeIr red. St Paul and Union Pacific. The
selling movement was not based factors af-
fecting the actual value Of securities, as there
was nothing in the days news that warranted
pessirnistic view OF the investment situation
The so-caIIed setback in the iron and steel trade.
the exaggerated views OF the Administrations
attitude on the purchase Of supplies in connec-
ton with the building of the Panama Canal un-
supported adverse reports on the condition Of
the crops and alleged uneasiness over the adj
vance in the foreign exchange market were used
by the bear element arguments for the sale Of
solid American securities Needless to say,
there were no sales for the account Of people
who are large owners Of stocks and bonds
that are held strictly for investment account.
There is nothing IN the general situation that
calls for bear sentiment in the stock market, but
the fact that the more important speculative in
terests are unwilling at the moment to take an
active part in current trading naturally encour-
ages activity among the operators who favor the
short side of the market
According to the reports received by The
Tribune from who well informed regard
ing the Western crop situation. there is no rea-
son for the predictions that are heard IN certain
circles intimating that this seasons harvests will
be poor. AS rule conditions in the great farm
lands Of the Western States are promising, dam
age to wheat being confined to q few sections
where weather conditions wholly local in effect
have prevailed In the last week. Wall Street
traders who are operating in the stock market
in the expectation OF being able to bring about
lower prices for securities have at the present
time visions Of a general crop failure this year
visions Of bankruptcy in the iron and steel
trade and visions Of acute disturbance in the
Northwestern railroad situation; but fortunately
for the holders Of American investment securf-
ties there is nothing in the position of the
crops, the iron and steel business and the North
western railroad outlook that warrants uneasi-
ness. The withdrawal OF the Hartman in
terests from the Northern Pacific directorate
does not furnish a fight among the financial
giants who are interested in the railroads Of
the Northwest the healthful and normal setback
IN certain lines of the iron and steel trade does
not mean that this great industry is about to
become insolvent. while unfavorable climatic
conditions In certain parts of the agricultural
community do not indicate a general crop fail
ure. For a time the consideration of Wall Street
fEncies will have an adverse effect on stock
market values, but eventually prices for Sc
curities ought to sell many points above the
present level.
Current strength in the foreign exchange
market represents conditions that may lead to
exports OF gold IN the near future but the pos
Eibility OF shipments Of the precious metal will
not create alarm in well Informed financial
circles. The country IS in position to settle its
obligations abroad in gold whenever the posi-
ton OF the foreign exchange market calls for
settlement in the metal. and outward move
ment Of several millions therefore will not exert
q material influence the local market for
loans. Money may possibly rule trihe above
the present level in the near future but the out
look FOR the summer favors an easy range Of
quotations notwithstanding the fact the inquiry
Tor money in connection with trade requirements
ana wall Street syndicate operations will make
heavy demands on bank facilities According to
the known movement of money this week the
New-York banks have lost more than 100000
the greater part Of the loss being due
WIN the Suo-Ireasury. Stocks closed duh and
heavy with the largest losses in AmaIgamated
Copper. American Smelling, st. Paul Erie New
York Central Union Pacific and the United
States Steel shares, in which net declines were
more than / per cent. Metropolitan was com
Yasative!y strong feature, also Brooklyn Rapid
Transit, Missouri Pacific and Peoples Gas The
Tact that the cereal markets recovered their
losses OF the preceding day failed to affect Stock
Exchange values.