New-York tribune., 1906-05-13
STOCK MARKET OPERATIONS.

Stock market values exhibited reactionary
tendency in the two hours OF trading, though
declines were unimportant and represented In
great part realizing sales and pressure by the
trading element. In view OF the. strength shown
in the preceding days Of the week the heavtness
reported yesterday was not surprising. nor was
there any concern over the failure OF a favor
able bank statement 20 bring about a rally in
quotations. Clearing House figures presented a
gain OF upward OF 100000 IN cash holdings
while there was an increase In the reserve above
legal requirements of s6.Ss5.OOO. the large addi-
ton 70 reserve being due 20 the increase in
cash and a big reduction IN loans, the latter
movement naturally being effective in causing a
large contraction in deposits. Reserve now
stands at S12,894.6 800, compared with S16,712,575
at this time year ago and $12,s27.25O IN 1900.
Loans OF the associated banks show decrease
as compared with this period in 1905 OF s74,-
O66 400 while cash holdings are $37 800 under
the record Of May 10, 1908. In the copper stocks
a moderate amount OF activity developed. buy
ing evidently being Influenced by the report
that at the next dividend period Of the Ana
conda company an increase viii be made in the
rate A larger dividend for this stock naturally
will help Amalgamated Copper inasmuch as the
latter company holds the control OF Anaconda
In addition 20 the copper shares, strength was
shown by Denver & Rio GTande, Mexican Cen
tral, Missouri Pacific Texas Pacific and
Wabash, while elsewhere IN the list OF active
issues net declines were reported at the close
the chief weakness being in American Smelters
ST. Paul. the sO-called Hill stocks, Reading
Union Pacific and Chicago Union Traction
shares The last named were weak on a rumor
that Judge Grosscup would hand down an un-
favorable decision in a case now pending to
cause the annulment OF certain leases OF the
Chicago Union Traction Company.
In the week just closed there has been a ma
terial easing in money. both in the time and
call departments Of the market, and while indi-
cations do not point toward cheap funds there
Is no reason to expect a return Of the stringent
conditions which recently prevailed. Apparently
the demand for San Francisco account IS over
for the present though there may be renewed
call for funds on the opening Of the banking in-
stitutIons at that centre and on the operations
incident TO the financing OF the rebuilding OF the
town. The decline in money has, OF course. been
a most important factor IN creating greater con-
hdence in speculative circles over the position Of
the stock market. ana the belief appears TO be
quite general that the improvement which de-
Veloped last week will run further, though In
some Wall Street houses IT IS thought that G.
speculative reaction Is due. The recovery from
the low points established IN the Frisco slump
was rapid, and the great strength exhibited by
prices indicated that the short interest was much
larger than generally supposed.
In addition to the buying by shorts there has
been an active investment demand, especially for
bonds purchases for this account being heavier
than FOR a long time past. This feature is one
OF the strong points OF the present market, and
Il it continues e undoubtedly win have a marked
influence on the course OF values. The fact thaa
many unfayoEable factors, which a fortnight ago
created extreme uneasiness In the Street. have
been eliminated from the situation naturally 10
responsible for bull enthusiasm which Is now
noted "a speculative quarters. and unless there
should be some great adverse change in general
conditions there doubtless win not be q resunp-
ton Of liquidation except that representing the
realization OF PROFITS. According 70 the reports
received By the commercial agencies IN the week
business conditions throughout tho country are
strong with ell indications OF further expansion