New-York tribune., 1906-08-26
STOCK MARKET OPERATIONS.

In the two hours of trading IN yesterdays
stock market transactions heavy through
out the list Of active issues while In the early
dealings the movement of values tended in the
direction Of higher quotations. In the last half
hour recessons recorded In the greater
number OF shares, and with the exception of ST.
Paul the prominent stocks presented a ragged
appearance at the close ST. Paul made a sensa-
tionsl advance ending the day at its best price.
g net gain as compared with Fridays closing OF
So per cent. Heavy dealings In this stock were
again accompanied by the report that Hartman
interests had secured control of the ST. Paul
property, but no official announcement regarding
such a deal was made UP TO the close Of busi-
ness. ST. Paul as an investment is intrinsically
more valuable than Union Pacific, despite the
fact that Union Pacific pays more in divi-
dends than the St Paul company, and accord
ing TO the belief Of the best informed in Wall
Street St Paul stock, which IS on a per cent
basis. will always outclass Union Pacific. which
has just been advanced to a. 10 per cent basis.
An unfavorable bank statement naturally served
TO induce speculative selling in most parts of the
list, and a consequence of this movement
many of the active issues closed well under their
best figures of the day The Clearing House re-
turn showed a decrease in the reserve above
legal requirements OF SSH 425 TO s4,29OO75,
which compares with ss,97s.175 at this time a
year ago and s57 s75.4O0 I'm 1904 Loans increased
sS.s40,s00 and ash decreased 81 1877 800 the two
items accounting for a small increase in de-
posits.
Conditions in the local money market suggest
the development in the future OF higher
rates for call money, especially If speculation In
securities continues at it's present excited pace.
In the last week call funds lent as high aa q
per cent, while time money was quoted at g per
cent for all periods, with premium reported in
many instances. Fortunately. the position of the
foreign exchange market foreshadows some re-
lief TO the money market through the importa-
tion OF gold from Europe. but in well Informed
foreign exchange circles II is not believed that
the shipments of the precious metal to this side
OF the ocean will be extensive. This tdea is
based on the rapidly increasing imports of mer-
chandiss from abroad, on the dover quotations
for grain and cotton in this country and on the
apparent unwillingness of foreign bankers to
permit a heavy outgo OF the metal 1t is quite
likely, however, that this country will be able
to borrow abroad through the medium of finance
/ bills in the foreign exchange market especially
| as rates for money in New York and through
out the country are materially higher than they
are In Europe. Another source Of relief will be
found in government deposits of funds with ma
| tional banks. and It may come to pass that the
/ banks Will be compelled 20 strengthen their re-
serves through wholesale liquidation in their
loan accounts Loans Of the associated banks
are heavy, and the active speculation In seouri-
ties is placing burden on the financial institu-
tons at time when their resources are being
depleted by the call for currency in connection
with the financing Of the crops and the promo
/ ton OF general business expansion. Domestic
exchange at interior points on New York is SELL
| ing at discount, which indicates an active need
for funds in the West and South and fore
shadows heavy Withdrawals by out-of-town
banks from their balances held at this centre
/ Reports received by the commercial agencies
from sJl parts OF the United States indicate a
most healthful situation in all lines of trade.
| Merchants and manufacturers counting on
many months OF business activity.
especially as the position the crops is so -ex-
tremely favorable. Wheat and corn have now
reached a stage which practically makes them
immune from injury by adverse weather and
as the money value OF the various harvests will
doubtless aggregate sS.OOOOOO.OOO. the impor-
lance OF big crops 10 the general business situa-
tion readily may be appreciated. In 1905 corn
wheat and oats gathered in this country repre-
sented a money value OF s1.S53, ,115,OOO. while IL
is estimated that the same products this year
will bring s2,1eOOO0.OOO. Adding 10 these figures
the value OF other farm products, including
cotton. the total value OF the harvests will run
heavily in excess OF last years record. which. it
may he recalled, vas not a small In view
OF all the favorable mercantile and crop cond-
tions II is not surprising that spectators in
stocks are extremely bulsh. but il may he we'll
for outsiders TO great caution I'm buying high
priced issues al prevailing quotations. There
appear 20 be immediate prospects Of a
severe decline in stocks yet it is not likely that
money market factors may be effective in bring
ing about sharp passing losses large enough TO
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