New-York tribune., 1905-07-12
sUniistsd.
Closing prices yesterday of active bonds dealt
STOCK MARKET OPERATIONS.

Stock market values agere heavy IN the greater
part OF the day with maximum DECLINES OF
per cent. and more IN many OF the active is
sues. while at the close the greater number OF
securities showed net losses as compared with
the final quotations ofSthe preceding,day. Lower
prices for American securities IN London and
heavy foreign selling in the local market natu-
rally exerted adverse effect on speculative
sentiment while the latest developments in con-
nection with the Equitable Life affairs the ex-
pectation OF higher rates for money and the
tendency on the part OF many 1nolders of stocks
10 take profits induced activity on the part Of
the board room element on the down side OF the
market. There was, however, little important
liquidation, the larger interests maintaining a
firm grip on their possessions IN the confident
belief that prices VIII sell higher IN the course
OF the next feE weeks. The larger interests
well supplied with stocks which they hope 10
dispose OF at better prices. and unless there
should be extraordinary change In the
situation governing money and business IN this
country the chances will favor, for a time at
least, bull operations in securities. In the
early trading and throughout the day the Street
was filed with reports that the government crop
report would show unfavorable conditions in the
agricultural section Of the country, but as little
was actually known regarding the character OF
tho report which not issued until after the
close OF business the rumors OF adverse condi-
tsons really were not important factors in the
days decline. Prices declined with more less
violence in the afternoon and consequence
net losses Of per cent and more were common
in the active shares. Metropolitan. New-York
Central, ST Paul, Sugar Refining Reading and
Southern Pacific lost moro than 2 per cent. Last
prices were only slightly above the lowest Of the
dav.
Current developments in money about IN
line with expectations. Great difficulty is being
encountered by the banks IN their efforts to in
crease their cash holdings 1t appears unlikely
that the banks will be able to add to their re-
serves by acquisitions Of cash this summer.
which naturally implies that they viii be COM
PEELED TO call inioans to meet the demand for
money to move the crops While the banks
might seem to be desirous of obtaining high
rates possible for their money they
fronfed with other considerations at the
rnent II Is not to their advantage to have trou-
bic In the money market although IT might re-
suit for a time in steep money rates, particu-
larry as any real disturbance in money probably
would derange the situation to extent that
would impose loss the lenders as well as on
the borrowers. What the banks really prefer
and seek fairly stiff and steady rates, and
they presumably may be relied on TO cooper
ete with the important financial interests, asJ
endeayor TO control lending quotations. Ad-
Inittedly IL would be idle to attempt to regulate
the supply OF money. Therefore. the next best
thing may be e-sayed. If disturbing pyrotechnic
flights be averted, good deal certainly will
be accomplished. Up TO the present time the
management OF the money market has not been
serious matter. but the future doubtless con-
tains problems that viii prove more or less
puzzitng. especially as there will be a heavy
demand this fall for funds in connection with
financing the crops. II should be borne in mind
that the inquiry for money this year will come
at time when the loans of the New-York banks
are unduiy expanded and the reserve above legal
requirements is unusually low.
Considerable space has been given TO the
dition OF the money market IN this column IN
the last two weeks for the reason that The
Tribune is anxious to keep its readers posted
regarding one OF the greatest controlling in
huences in the Street; also for the reason that
the best informed bankers believe that the gen
eral public should have clear understanding Of
the probable course Of the money market In the
fail The mere fact that money may rule at a
higher level IN the autumn months does not
necessarily mean that the bear element on the
Stock Exchange viii be able 10 bring about a
materially lower range of quotations. There
have been many bull markets with call money
higher than IT is at present, and unless there
should be radical change in the conditions
governing the industrial activities of the nation
there should be no great decline in values even
after the big" men have marketed their stocks
OF COURSE, the big men working actively
to sell thair stocks 10 the public. and If the
public accepts the bait prices may go lower for
d time. but the fact that many securities are
hsiA bx investment iutarosts zxhn do rot finland