New-York tribune., 1906-06-29
STOCK MARKET OPERATIONS.

In the early dealings in yesterdays stock mar
ket prices declined throughout the list, In many
instances losses of more than per cent being
recorded, the selling movement representing fur
ther liquidation of long accounts and pressure
from the so-called professional element. At the
low level fair amount of support developed,
which attracted an active demand from the
shorts, with the result of improvement in all
the active issues which continued in the balance
of the day. final figures showing substantial net
advances in the greater number of shares. A
number of the more important houses were
active buyers the early decline, and their
presence in the market, together with weakness
in foreign exchange which encouraged reports
of negotiations for gold imports, served TO con-
vert recent bears into temporary bulls. The ad
vance failed, however TO bring in important
public interest, the character of trading as a
whole remaining about the same as noted in the
operations of the last few weeks. Another factor
which evidently served to encourage more
cheerful tone the Stock Exchange was the
announcement from Washington that an agree
ment had been reached on the Rate bill and that
there were excellent chances for adjournment
of Congress Saturday. The more important re-
coveries and final gains We're made by, the cop
per shares American Srnelters. Brooklyn Rapid
Transit, Colorado Fuel, st. Paul Interborough-
Metropolitan, Northern Pacific. Southern Pacific
and Union Pacific. United States Steel common
and Reading We're heavily dealt in and enjoyed
sharp advances from their low point, though
closing at only fractional gains. The actual i'm
provement in Reading, however. may be judged
from its low price of 1924 and its high price Of
126. Considerable disappointment was expressed
in speculative circles over the tendency of the
market to become dull on the advance, this
being due to the absence of public participation
In the dealings Last prices a rule were at or
near the best. 1t was the day for Mr.. Lawson's
promised slam at the market, but nothing was
heard from Boston. Perhaps the Boston wizard
covered his shorts in Thursdays slump
Wall Street has developed amount of pes
simsm entirely unwarranted by the general
position of affairs affecting the country's money
and business. There is nothing intrinsicaIly
wrong with the general situation. and it is ah-
surd TO sell stocks merely on the theory that un-
certalnties Will develop actual adverse condi-
tions Uncertainties suggest caution not hys-
terra. Absence of public demand for securities
does not reflect financial depression among the
people, nor does the effort of the government to
eliminate corporation abuses foreshadow a down.
ward movement in American industries The
common interest is being served by the agrees
sve tactics of the Washington administration
and eventually this fact will be realized by
every man in the financial community There
have been and still are reasons for speculative
liquidation, but there is nothing foreboding in
the investment outlook and no reason for alarm
on the part of investors. The readjustment OF
speculative holdings and values now under way
Will result in more healthful Wall Street posi-
tlop and later on serve TO bring about situ-
alton which will encourage better demand both
for new and old securities. The market is still
congested with new issues but with the reac-
tonary tendency in prices a wider distribution
will take place. though at the expense of the
syndicates which have been unable TO sell their
holdings at the high figures recently prevailing
Stocks now being liquidated by pools and in
dividuals find their way into strong boxes Wall
Street is not dscounting the development of
business depression. for apparently that is a
long way off 1t is merely paying the price of its
own folly. Trade conditions in all parts of the
country are stronger than ever before with
absolutely no sign OF weakness, and unless the
crops should meet with great disaster prosperity
| ought to continue for months to come
Time money rates firm. while call funds
have been relatively easy though higher yester-
day. Strength in the time department reflects
business interests OF the country; also a demand
from concerns which are making commitments
for long periods to cover requirements which
may develop when even stiffer quotations may
prevail Bank reserves are low but the general
position of the banks is strong their money
being we'll employed al profitable figures backed
by solid collateral. Low reserves do not reflect
the locking up OF funds. but indicate the active
use of money i'm the channels of trade Weak
ness In foreign exchange encourages the ex-