New-York tribune., 1906-05-02

After a brief exhibition of strength in the
early dealings in yesterdays stock market.
prices declined throughout the list. with heavy
maximum losses in many shares, notably Great
Northern. in which there was depreciation of
more than 10 per cent The weakness in this
issue and the evidence of selling for the long
account by interest who accumulated stocks in
last weeks market exerted a most unfavorable
influence on speculative sentiment and created
much pessimism among the people who bought
securities on Mondays advance i'll the expecta-
ton that sustained upward movement had be-
gun. In the last hour sharp declines were re-
corded throughout the list under the influence
Of demoralized selling movement. On the
break there apparently attempt on the
part of the larger interests to support prices
and the fact that large losses were sustained
by the high grade investment shares naturally
created the belief that something more than or
binary speculative selling was under way, es-
pecially in the case of Great Northern. st. Paul.
New York Central. Northern Pacific and Union
Pacific In the greater number of active issues
net losses were extremely heavy, but there was
not corresponding weakness in the bond mar
ket. though prices for mortgage issues closed as
a rule under the final figures of the preceding
day. Call money advanced to 10 per cent, and
this rise, of course. was a factor in helping
along the downward movement in securities.
Notwithstanding violent efforts by certain
commission houses which are actively identi-
fed with the bull side of the market to attract
an active public buying demand, the majority
of prominent Wall Street firms are not at all
bullish in their advices to consumers. and, as
rule outside interests are not inclined to take
an active part in current speculation. Never
theless, the greater number of bankers believe
that eventually there will be an excellent public
demand for securities, though they qualify
their predictions with the suggestion that
upward movement will begin from lower level
of quotations, and that such movement will
not develop until there has been a material de-
cline in the rates for time money. It is gen
orally admitted that such stocks as Great North
ern and Northern Pacific are selling too high.
while it is conceded that, based on the dividend
yield, Canadian Pacific, New York Central.
Pennsylvania and number of other high grade
issues are now quoted at a level which war
rants their purchase by investors. OF course, If
levelheaded investors believe that there is any
chance of lower prices they will not take stocks
at present figures.
Large amounts of money have been engaged
in Europe for shipment to this country at
time when the demand for accommodation is
most urgent and il therefore is extremely salts
flying to feel that the outlook does not favor
disturbance in the loan market in New York.
money 10 the Pacific Coast. it readily may be
seen that the foreign movement OF gold to this
country strengthens the local situation mas
much as the currency which goes TO the West
will return to this centre later on in the year,
while unless there should be extraordinary de-
velopnents in the financial situation abroad the
gold received from London and Paris will re-
main at the disposal Of the American market
The active demand for money. however, un-
doubtedly win prevent an easy market for loans
in the near future. but just as long as there is
no material advance from prevailing quotations
and no premium demanded in the time depart
ment there will be no reason for distress on the
part Of borrowers. though 4: may not be easy
for stock market spectators TO carry out the
bull campaign which was decided upon before
the earthquake and FIRE in San Francisco caused
such a sudden change in the calculations of
Wall Street
Since the early part OF April, when the Secre-
tary Of the Treasury adopted his policy of per-
mitting banks to deposit bonds IN return for
government gold pending an arrival Of an
equivalent amount OF the metal from abroad
there has been deposited on this account upward
Of SSoeeO0o which in great part has been
offset as far as the holdings Of the local banks
are concerned by transfers of money through
the Sub-Treasury 10 the Pacific Coast Il is
quite generally believed that the movement OF
money to the West viii continue for a number
OF weeks to come. and that conditions In the