New-York tribune., 1906-06-12
STOCK MARKET OPERATIONS.

Early weakness in yesterdays stock market
was followed by strength in the afternoon which
resulted in net gains throughout the list Ihe
inward movement started under the leadership
Of ST Paul and Union Pacific the development
Of an advancing tendency rejecting the presence
in the market of a large short interest, which
showed considerable anxiety 70 cover its con-
tracts especially after the publication OF the
crop report which made much better showing
than was generally expected by the speculative
element. While there a falling off in the
condition Of winter wheat. compared with
month ago. the total indicated yield was above
the normal, aggregating 713,300,OOO bushels
against a final crop of 629,919.4S9 in l'NJ9
Spring wheat IS in excellent condition. but oats
show considerable deterioration from month
ago. Since the first Of June weather conditions
in the crop section Of the country have improved
and the present condition of grain is therefore
better than that shown in the government re-
port witch gave figures Of June l. The
chief improvement In the ACTIVE list was record
ed by American Locomotive. Atchison. Colorado
Fuel St. Paul Northwest, Delaware & Hudson,
Northern Pacific. Pennsylvania. Reading and
Union Pacific in which advances of 1 per cent
and more were recorded. There was nothing in
the days news, outside of the crop report, bear
ing on the stock market. the improvement in
values being due in great part 10 purely specu-
lative operations. A report that the Pennsyl-
vania would dispose of its holdings OF Baltimore
& Ohio to the Reading company was not seri-
ously considered in Wall Street circles.
Advices received by the Treasury Department
from San Francisco indicate further large trans
fers of funds from the Pacific Coast to the East
in the near future. So far in the current return
movement there has been received upward of
S15.o00Go0 but this amount has been offset to
a great extent by excess payments by the banks
TO the Sub-Treasury. Later on in the season
New York doubtless will receive through Treas
ury transfers large amounts of gold from Alaska
and the Klondike while in July the eXpendi-
lures Of the government will as usual, be heavy,
which, of course. will throw a large amount OF
money into circulation, and serve to assist in
maintaining rates for loans at a moderately
easy level during the summer period. While lead
ing bankers not looking forward TO a season
OF extreme in money. they believe that
there will be no difficulty in securing call ac-
commodatiOn at prevailing quotations or lower
until the fall demand develops, which may be
expected TO take place toward the end of Au-
gust Undoubtedly rates for money will be high
in the fall, and as consequence bankers believe
that foreign exchange quotations will decline to
level which will permit imports of gold the pres
ent strength in the exchange market not being
a forecast of conditions in the autumn. This is
the time of year for strength in exchange and
even If sterling should advance to the gold ex-
porting point such a situation would not be Of
long duration. Cash holdings of the associated
banks, as shown in Saturdays Clearing House
statement, are about So 100000 less than they
were at this time year ago. but loans show
decrease Of more than S30000000. as compared
with 1919. while deposits at present are more
than SSo.roO0O smaller than they were last
year at this period. Current reserve is small.
and the banks. while strong in cash, are not in a
position to finance a large speculation IN stocks.
especially as the demand for money from the
railroads is so active. The fact that there are
so many new securities in the market which
fail to find buyers. with the prospect of addi-
tional issues. is a factor which en-
courages the belief of great speculative activity
1t is expected formal announcement will be
made this week Of the Pennsylvania loan in
Paris. while IL is thought that the directors of
the Chicago, Milwaukee & st. Paul may COM
pete their negotiations for the financing of their
Western extensions to extent which will
permit making the details of the operation pub
lie. The st. Paul company IS being managed in
a manner which creates great confidence among
investors. and the fact that the road proposes
TO add to its capital obligations for the purpose
Of extending it's business TO the Pacific Coast is
considered bull argument on the stock. which
In the last few weeks has enjoyed marked i'm
provement OH the Exchange. st. Paul, unlike
pennsylvania, has not in the last few years
made important additions 10 its capital its ex-
penditures on Improvement and betterment be-
Ing made in great part out OF current earnings
In 1907 the company's authorized common stock
was increased from S5sO00OOo TO So. 900 O0O
but the company still holds the S25 900 600 new
stock in its treasury, and IL is likely that most
of this will be issued in connection with the
proposed Pacific route. At its present price