New-York tribune., 1906-09-22
STOCK MARKET OPERATIONS.


In yesterdays stock market transactions were
moderately heavy in the leading issues. while the
course OF quotations IN many issues was in the
direction OF better level Although total deal
ings reached high figures there was little inter
est IN speculation the part Of public operators
and no decided efforts among the substantial
banking interests 10 encourage public dealings
in stocks and bonds Fortunately the more i'm
portant Wall Street interests are bearing in mind
the condition Of the money market. and in conse-
quence they are now working TO hold in check
bull enthusiasm. which naturally is warranted
by conditions affecting the intrinsic value Of in
vestment securities. The future of the market
would be injured by excessive speculative trad
ing at present. owing to the position OF money.
and It is encouraging TO record the fact that
many bull enthusiasts trying TO prevent an
outbreak of excessive speculation. The chief
owners OF stock naturally anxious TO dis
pose Of their holdings at higher prices. but they
are exercising common sense in suggesting a
quieter speculation IN all issues. Ideas in Wall
Street are subject 10 sudden changes and opin-
ions. and resolutions adopted one day may be
thrown aside the next. and IL therefore will be
interesting 10 watch the fluctuations in specu-
iatiye sentimeSt which may occur in the course
OF the next few days. particularly in view Of the
unfavorable position Of the money market
Some uneasiness developed in banking circles
over the strength In discount rates abroad and
the action Of The Bank Of England in raising
its discount terms on foreign bills TO AZ per
cent and loans TO the market at per cent.
This Of course. indicates a determination on the
part OF the bank 20 protect it's gold supply
against the demands Of American bankers. the
result of which will be lighter engagements Of
gold in the British capital for export to Amer
ica. Indeed. the chances are that our bankers
will not be able 10 secure further large amounts
Of the precious metal in London or in Paris. but
this prospect apparently does not appeal TO GER
tain local interests. who evidently under the
impression that New York can obtain all the
gold IL wants merely for the asking. 1t is prob
able that some of the metal will be taken in
Australia for shipment TO this country, but even
the resources Of the Australian market soon will
be exhausted If the American demand continues
urgent IL is at present. The very fact that
our bankers feel compelled to search the world
over for gold is not a bull argument the
financial situation in this country, and the
gent inquiry for money here. due IN great part
20 the excessive speculation in securities Of the
last few months. is causing considerable concern
among the people who are interested in the well
fare OF American business conditions 1t is quite
evident that the local market needs more money
in order to supply the demands OF legitimate
business. and IL is now suggested that the Sec
retary OF the Treasury should again render
sistance by paying in advance government bonds
which will reach their maturity next July. II
the actual requirements of trade call for assist
e1,F- aI,a
in placing this amount OF money in circulation.
hut II VIII be a poor argument for stock market
speculators inasmuch as such action would e1-
hibit our inadequate and antiquated currency
system and the oyerspeculation liz securities, 20
say nothing OF the current eKtrRvagant rste OF
expenditures which now mark individual and
corporate transactions.
Prices for iron. steel. copper. dry goods, and.
In fact, for the greater number of products
which are involved I'm the cost OF living and in
the country's manufacturing output are ruling
al high level. with all indications favoring
further advances. and in consequence more
money is required by the individual and the cor
poration. This in connection with the specula-
uon In securities is responsible for the money
market situation. which contains many elements
or danger. Such considerations however, so far
have not become influential factors IN the Wall
Street market. The unusual action by the Bank
OF England In establishing it's discounts at a
higher level without increasing the official mini
mum rate and the strength in Paris discount
rates were responsible in part for the irregular
ity which developed in the afternoons local
stock market. but they were not effective a.
bringing about extensive liquidation. Tn many
stocks early gains were lost before the clos,
especially in Erie Pennsylvania. Southern Pa
cihc. Union Pacific. United States Steel COM
mon and Reading. The last named issue clo.as
more than ! per cent under it's best price ana .,
a net loss OF y as compared with Thursdav.s
final figure. Amalgamated Copper. American
Smelling. Baltimore & Ohio. BROOKLYN Ran,a
Transit and ST. Paul closed al net advances