New-York tribune., 1906-10-28
STOCK MARKET OPERATIONS.

OIUCh MAhkET OPERATIONS
Transactions in yesterdays stock market
were light in volume movement of values
which showed considerabl f1rrnness. especially
in the last half hour, when in the greater num-
Der Of issues prices moved toward a higher
level. This Improvement was due to a mod
crate increase in buying. based on a relatively
favorable bank statement showing a decrease
of only S527.275 in tho reserve above legal re-
quirements. The falling off in cash. amounting
to more than 100000. agreed with the pre-
lininary estimates. but the influence Of this
loss on the reserve above legal requirements
was insignificant, owing to a heavy reduction
in deposits of more than $27OOOOOO The de-
cline in cash holdings and a contraction in
loans Of over S20.O00,OO0 accounted for the
change IN the deposit item. Reserve now
stands at S5,673. .675, compared with S12 43O 925
at this time a year ago. and S16,793.65O in
1904 The decrease in loans doubtless was due
TO the transfer from the banks to the trust
companies of large obligations OF this char
acter; also to the liquidation of long stock.
which was quite prominent feature in the
weeks securities market. The chief activity
in the two hours OF trading was supplied bv
Analgamated Copper st. Paul, Reading Union
Pacific and United States Steel but even in
these issues total dealings were light There
was some good buying in the Mexican issues
and Canadian Pacific while throughout the list
offerings whenever made We're taken by a good
class Of buyers, though there was no disposi-
ton on the part Of the larger interests to en-
courage bull activity. the late advance being
due entirely to covering Of shorts
While the reserves Of the associated banks ara
low. no uneasiness Is expressed in financial cir
cles over the future OF the money market Nat
urally. the present position of bank holdings
speculation. and the chances are that the intel
hgent element Of the banking community will
exercise its best efforts to restrain speculative
enthusiasm until there is a large s11nn1v or
available funds at this centre. The return move
ment Of money from the interior will not be-
gin for several weeks to come. and even after
the urgent crop demands have been satisfied
the reshipment OF funds to New York may not
be heavy commonly expected. owing to
the activity Of trade in all parts Of the coun-
try which involves, Of course. large OF
money. Reserves, however will be increased to
q certain extent by the shipment of currency to
the East while in the event Of serious disturb
here the Secretary of the Treasury doubt
less again will come TO the help of the market.
Gold imports are out Of the question, owing to
the unfavorable money market situation abroad:
indeed, later on in the season this country may
other side OF the ocean, though such devel-
opnent doubtless will not take place until there
has been a material increase in local bank hold
ings.
The general situation would be helped by fur
ther liquidation Of stocks. inasmuch as such
liquidation would serve to decrease the loan
account, which In turn would have favorable
effect on reserves. and II there should be liqui-
dating movement the Stock Exchange Il
would not upset the general holders of securities
or make impossible the resumption OF bull ac-
tivity at some future period. AS a rule, however
stocks in such strong hands and are so we'll
protected that wholesale selling movement does
not appear probable. Nevertheless. there are so
many accounts carried on borrowed money that
their liquidation would have the effect of i'm
proving the position Of the banks Naturally
however, the banks not particularly anxious
10 reduce loans. and are not averse to making
new loans at current interest rates. which are
so high as to give satisfactory profits TO the
lending institutions; and the fact that their
loans outstanding are secured by the highest
grade of collateral protects the institutions
against trouble il the event Of acute disturb
ance If there should be a heavy drop in prices
Of securities. due TO adverse business conditions
the banks would know how to protect them
selves In the present week. stock market op-
orators look for a repetition of last weeks
movements. 1t is not thought likely that prices
will enjoy any marked improvement. unless the
| Street should suddenly make up its mind that
there is no chance Of the election of Mr. Hearst
! but the current campaign has been SO different
from other political campaigns and so many
new issues have come 10 the front that the
Street probably will not be willing to commit
itself to any extent to either side of the snecu
lative account pending the outcome of the
voting.