New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-29
STOCK MARKET OPERATIONS.

In yesterdays stock market heavy liquidation
was reported IN the best part of the day. and in
consequence prices in the majority OF issues
showed marked declines from the closing in
Thursdays dealings, but owing 10 a sharp rally
IN the late operations final quotations as a rule
were at net gains In Amalgamated Copper. ST.
Paul Pennsylvania and Union Pacific decided
weakness developed IN the forenoon. selling COM
ing from weakly margined accounts and from
the traders who anxious to bring about
lower figures. A number of the larger specu-
lative houses have been bearish on the market
IN the last few days. but the more important
holders have not disposed of their possessions
and they believe that prices soon again will be
moving in the direction OF better figures Bear
raids were common throughout the day. par
ticularly in st. Paul. Amalgamated Copper. the
Hartman and Steel stocks, the sales however
being taken by strong buyers while on the de-
cline many dealers took the opportunity to cover
their short contracts. Opening quotations
showed some improvement over the preceding
days close. being helped by stronger prices for
American issues abroad. the strength in the
London market being due to buying for Ameri-
can account. based the announcement that
Secretary Shaw would place government funds
with national banks In the last hour advances
which occurred were due in great part to the
strength N the Steel stocks and Great Northern.
the movement in these issues being ACCOMPANIED
by a report that the ore deal had been closed
The market rallied easily on covering of shorts,
Great Northern rising 10 points from the low
price and Steel common nearly points Among
the exceptions to the early downward movement
was Canadian Pacific which exhibited pro-
nounced strength a good class of buying
The tremendous earnings OF this property and
the improvement which has taken place in its
actual value give II a strong market position
and encourage investment buying. Many care
full observers believe that Canadian Pacific is
intrinsically more valuable than Great North
ern, notwithstanding the fact that the latter
stock Is selling very much higher
The action OF the Secretary Of the Treasury In
announcing his willingness to place with de-
positoyy banks S26,0O0.OO0 to be secured by
bonds which are legal investments for New York
and Massachusetts, savings banks did not en-
courage the expectation in banking circles Of
any great relief to the money market through
this government assistance. That the Secretary
will place only 100000 in New York the bal
ance going to institutions IN various parts Of
the country. naturally is a disappointment to
operators in stocks, but, of course, the measure
will help to prevent disturbance which a few
days ago seemed imminent. There is consider
able doubt regarding the ability of some Of the
interior institutions designated to supply the Sc
curity required, but in this event 1t is not i'm
probable that Mr. Shaw will increase the allot-
ments to the New York banks, which will be
able to provide the bonds asked for. Deposits
made against gold engagements by the federal
Treasury and national banks since September
10 amount to more than $50 100000 and IT is
possible that this may be increased to $40
100000 on the current gold importing move
ment The heavy demand for money from the
West and South has offset to a considerable ex-
tent the receipts of gold from Europe, and not
withstanding increased government deposits
there Will be little chance Of easy money market
conditions unless further heavy material sums
OF the precious metal are secured abroad for
shipment to the United States or unless Iqui-
dalton in stocks reaches volume which will
bring about heavy reduction in loans
Time money for all periods rules. including
the commission exacted, IN the neighborhood OF
7 per cent, while the banks are receiving per
cent on commercial paper. and the strength In
this department OF the market is causing con-
siderable uneasiness in mercantile circles,
though the best Informed people do not believe
! that serious trouble will result. The scarcity OF
funds is caused by heavy operations in trade.
! due 10 business prosperity and to the long
! period of speculation in stocks but there is
! good reason for the belief that after the re-
/ Qurements OF the agricultural community have
! been made there will be an active return flow
of money TO the East. and that more money will
/ become available through liberal purchases by
! prosperous farmers of the necessities and lux
/ uries OF life.
Trade reports received last night were ex-
| tremey encouraging, Improvement being shown
! in most lines Of business. and no bearishness on
the part OF trade interests except In respect to
| money market conditions. According 10 iron
and steel authorities the trend OF prices for iron
and steel in the remainder of the year viii be in
the direction of higher quotations Current
consumption is enormous. while the buying for
future delivery Is heavy. Strength in iron and
steel is accompanied by frmer conditions in the