New-York tribune., 1906-07-22
STOCK MARKET OPERATIONS.

Stock market quotations opened strong under
the influence of a moderately broad demand and
while subsequently considerable tesitancy was
shown in various parts of the list the general
range OF values at the close was above the final
figures Of the preceding day. Higher prices for
Russian bonds and the stronger tone of the
foreign markets were factors in helping the
local speculation, while the expectation of
favorable bank statement also strengthened sem
timent. on the theory that the market is about
to enjoy period of advancing values There
was. nevertheless. quiet profit taking in many
issues, and it was quite evident to the expert
enced observer that the larger speculative in
terests were following out their old plan Of MAX
ing one stock strong while selling out in another,
this being especially noticeable in the case OF
Southern Pacific Efforts being made TO
create the belief that the Southern Pacific di-
rectors soon will declare dividend on the COM
mon stock, but in well informed circles it is not
thought the directors will take action of this
sort just now. as II would be extremely doubtful
whether the company would be able to maintain
dividends il they should be declared at this
juncture. In addition to Southern Pacific there
was marked strength in Union Pacific Reading
st. Paul and Interborough- metropolitan The
copper shares were heavy. Bank statement
changes showed increase in the reserve above
legal requirements Of the Clearing House insti-
tutions of S6.56O.2OO to S19,391, 900. compared
with S14,949,950 in the same week a year ago.
and S50.609.6O0 in 1904. Cash holdings increased
more than S11.7Oo.OOO. while loans increased
S9,435,3OO, these two items accounting for an
increase in deposits Of upward of S21 100000
The money market position at the close Of the
week shows improvement as compared with
week ago. and from all indications there will be
no disturbance in the autumn, unless an active
wave of bull speculation should develop. While
the bank reserves are not large. the chances are
that there will be a steady increase in the
course of the next few weeks, and the fact that
foreign trade is running heavily in favor of
this country suggests the probability of large
imports of gold just the demand for
funds in connection with the financing of the
crops becomes urgent, while II is not unlikely
that New York bankers will be able to secure
some of the metal in London this week Gold
to the amount Of S5.OOO.OOO will arrive in Lon
don from South Africa tomorrow, and it will
be available for export to this country, in part
at least, If foreign exchange conditions should
be favorable to such movement. With gold
imports ahead and with the knowledge that the
Secretary Of the Treasury will come to the relief
tion OF disturbance there ought to be no uneasi-
ness in financial circles the monetary sit
uation for the next few months. The actual
position OF the money market is stronger than
superficial conditions suggest. The better money
market outlook, the great success Of the Panama
Canal bond issue, the evidence OF expanding
trade and the splendid progress Of the crops
have created a more optimistic sentiment in
Wall Street. and It is conceivable that a few
may bring in a more active demand for securi-
ties for public account. General opinion, how
ever appears TO favor the idea that the market
will remain a traders affair for a number of
weeks to come It may come TO pass though
that the improvement in money conditions will
be so rapid that an August bull movement will
be inaugurated.
Bull markets in August are not unusual, and.
OF course the fact that there has been such fall
in values in the last three months, accompanied
bv the elimination Of weak spots. works in favor
of the interests which are anxious to bring about
higher prices before the autumn. Trade reports
received by the commercial agencies covering
all parts of the United States for the last week
show remarkable activity in all lines for this
period OF the year. the usual summer dulness
not being factor in trade a whole This is
reflected iE the way railroad earnings are keep
ing UP and in the volume of bank cIearlngs the
latter for the week ended Friday presenting
an increase over the corresponding period in
1909 OF 13 per cent. For the second week in
July railroads reporting show a gain of 10 per
cent the time last year, this COM
pairing with similar increase in the first week
the gain not being confined TO any one section OF
the country That railroads expect another year
OF heavy traffic is reflected in their liberal orders
for new rails. bridge material and rolling stock.