New-York tribune., 1906-07-01
ENLISTED.
Closing prices of active bonds dealt in, with
STOCK MARKET OPERATIONS.

market prices in the initial dealings as compared
with the final figures of the preceding day. the |
general movement OF values in the two hours OF |
trading was in the direction OF lower quotations,
declines in many instances amounting to more |
than per cent. Active liquidation in prog |
ress throughout the list especially in United |
States Steel shares. Union Pacific, American |
Smelters and Pennsylvania. The general char |
acter of trading was similar to that which has |
marked the course of dealings the Stock Ex- |
change throughout the week. and nOtwithstand- |
ing favorable bank statement and splendid |
trade reports there no indication OF aggres- |
sive support, though good houses were buyers
on the decline. Bank statement figures fol- 7
lowed out quite closely Fridays estimates. cash
holdings showing an increase Of S1,119,OOO, |
while in reserve above legal requirements there |
was gain OF 81, ,142, ,S25 TO S12,O55. 75O, which
compares with $11, ,65s.S75 at this period year
ago and S36 1O5, 300 in 1904. Loans decreased !
SS13,4OO. Current bank conditions in most re- |
spects better than they at this time last
year, but considerable disappointment is felt
over the failure Of last weeks heavy liQuida-
tion in securities to bring about large reduc-
ton in loans. It is quite evident that large
part Of the weeks selling movement in securities
represented liquidation of accounts which were
not carried on borrowed money. including no
doubt heavy sales by fire insurance companies,
who apparently prefer to sell their investments
rather than renew loans which were made after
the San Francisco disaster. There doubtless
also was selling by life insurance companies.
The lowest figures OF the day were recorded after
the publication Of the bank statement
General trade conditions at the end Of the
fiscal year do not warrant the prevailing pes
simism in Wall Street, declining values the
Stock Exchange being due to factors other than
those governing the intrinsic value OF invest
ments. According TO the reports gathered by
the leading commercial agencies covering all
parts of the United States, the last twelve
months have been the most successful for the
nations industries ever recorded in the history
of business There is at present no sign Of
weakness in any department OF trade and no in
dication that there will be material setback in
the near future; indeed, all signs point to a
further period OF prosperity. Notwithstanding
the fact that certain Wall Street observers be-
lieve that they see in stock market declines
| forecast of an adverse change in the current OF
| business. Sometimes Wall Street discounts dis
tant events but in the last few years it has been
an exceedingly poor barometer of business
changes and no confidence. therefore, should be
placed in the idea, which is held by only few
people. that the liquidation going on in
stocks foreshadows the development of depres-
! sion in all departments OF domestic industries
Stocks have declined as a result OF speculative
conditions. Walt Street has taken unnecessary
alarm over the progress OF affairs in Washing
ton, and for many weeks it has been harping on
the argument that the activities OF the admin
! istration in Congress in the matter of investi-
eating and prosecuting corporations which dis
obey the law will be followed by a check to
business and the disposition the part OF cap
italists TO withdraw their money from securi-
ties. This theory has been encouraged by spec
ulators who are anxious to bring about lower
quotations for securities, and as the market has
been surfeited for a long time with securities
for which underwriting syndicates and pools
have been unable 20 find market, IL mas not
been particularly difficult 20 bring about an ac-
| tive selling movement.
The decline last week carried the greater num-
Der of stocks well under the closing OF the pre-
ceding week. twenty leading railway issues for
instance. which Saturday, June 3d. showed an
average price of 1874. stood at an average
price yesterday Of 1880 Corresponding depre-
citation was recorded in the Industrial list While
| IL may be unwise 90 advise the purchase OF
stocks on margins at present figures It is well
to note that the issues recently sold have been
taken by strong financial interests and that
speculative rally, If nothing more ought soon
to develop. AS the Street has worried so much
over Congress its adjournment yesterday should
naturally bring about improvement in sentiment
and corresponding improvement in prices Lead
ing commission houses in their advices 20 GUS
toners suggest the probability OF better quota
tions before autumn, and many Of the prominent
brokers believe that the time has now come when
stocks will prove a profitable purchase on
further declines. particularly as the money mar
ket outlook is better owing to the decline which
has taken place in foreign exchange and the
probability OF large gold imports.
-s-
MONEY AND EXCHANGE.
/ MONEY .NGARKET-Aaoney on call per cent