New-York tribune., 1906-03-11
STOCK MARKET OPERATIONS.

In the two hours of business. in yesterdays
stock market prices moved in the direction of
lower quotations in the greater number of
issues net changes al the close showing a long
list Of declines. the only important exceptions
being Tennessee Coal and Iron and Peoples
Gas. While there was a strong market for the
Chicago Gas stock Consolidated Gas in this
city was extremely weak suffering maximum
decline Of over three points a heavy selling
movement based no doubt the announce
ment that the company would b" compelled to
pay highe- taxes on its property, and the
belief that the SO-cent gas bill will become
law. With a reduction in the price Of gas and
an increase IN the Company's taxes. earnings
either wiz have to increase o. else the company
Will be compelled to reduce its expenses in
order 10 make the maintenance of present divi-
dend6 possible. There is no fear however on
the part Of the company that it will be forced to
lower its dividend rate, inasmuch plans al
ready are under way for economies in the cost
Of operation. while IT is naturally assumed that
a decrease in the price of gas viii lead to a big
ger consumption Of the product. While bank
statement figures made relatively favorable
showing. there was no increase in stock market
activity after the publication of the Clearing
House figures and no efforts the part OF spec
ulators to bring about rally. Indeed the sell
ing pressure appeared to increase after the bank
return had been announced
If it had not been for A large contraction in
loans there would have been a falling off in
the reserve above legal requirements. inasmuch
as there was a decrease in cash holdings of over
S5,000OO0. which compared with an estimated
loss Of less than S2.0OO.OOO. AS A result OF the
loss in cash and the reduction in loans, there
a falling off in deposits Of over S27,0O0.O00,
and as a consequence the cash required against
l,-y,, oIo
an increase in the reserve above legal require
ments Of 81. .454,9S0. Total reserve now stands
al So. .463, 700. compared with $927S,15O at this
time year ago. and S29,937 ,O75 in 1904. Cash
holdings of the associated banks are now lower
than they have been in the last three years,
while there has not been a prOportionate de-
crease IN loans. In addition TO the weakness
shown by Consolidated Gas there were material
declines in American Car and Foundry, Amer
lean Sugar Refining. Northern Pacific, Great
Northern and Union Pacific.
Money market conditions improving, and
while rates for loans doubtless will rule a firm
level for a number OF weeks TO come, there is at
present at least. no factor in the situation
which foreshadows monetary disturbance.
Banks Of course. will be called upon for
rency in connection with the demands incident
10 the spring trade. while there may be further
losses to the government. though II is interesting
10 note that for the first time in many weeks
the local institutions yesterday showed a gain
in their account with the Sub-Treasury. Ster-
ling exchange having declined TO level near
| the gold importing point. II naturally is assumed
| that shipments of the metal soon Will be made
from Europe TO this country. At the close of the
! exchange market Friday rates were within one
fourth cent Of the gold import point, which is
estimated at S495 TO 4.S5. and If there should
| be further decline Of twenty-five points this
week. all other conditions remaining the same,
the yellow metal could be brought in at a profit.
| In the last week the drop in the price Of eX-
| change was helped by the encouraging progress
! Of the Moroccan conference, which naturally
was effective in bringing bout liberal offerings
! Of finance bills. There also were good sized Of
| ferings Of security bills against purchases of
! stocks in this market for foreign account. The
| New-York banks have now received the entire
| amount OF their proportions OF the SloOoOOOu
! offered by the Secretary Of the Treasury TO de-
| uository institutions. but this sum has not mad
any effect on the money market. though 1t has
exerted a favorable sentimental effect In hnan-
| c,al circles the assumption being that In the