New-York tribune., 1906-06-03
STOCK MARKET OPERATIONS.

Transactions in Yesterdays short session Of
i the stock market We're light in volume on
| movement of values which generally favored the
long account An exhibition of pronounced
strength in St Paul apparently was due to
speculation based on the theory that the COM
pany in financing its Western extension VIII
give to the stockholders valuable rights SO
far there has been no official confirmation of the
Wall Street report regarding the form which
ST Paul's probable financing will take, but
spectators appear 10 believe that there VIII he
an issue of bonds. also Of stock. The present
time does not appear to be propitious Tor the
bringing out of new securities issues, especially
as so many underwriting syndicates are tied up
with stocks and bonds for which they have been
unable to find a market, and as consequence
St Paul may conduct a large part Of its fnanc-
ing in the foreign markets. The publication Of
a hank statement which was not as favorable
as fridays estimates indicated was without
effect on values. According TO the known move
ment of money in the week the Clearing House
return should have presented a gain in cash
Of between $GOO0,OOO and $9,0G0OG0, but the
actual figures showed gain of only $1126OOO
while the reserve above legal requirements was
increased by only $121S13. An increase in loans
Of 50 l52 600 with the gain in cash. accounted
in great part for the increase in deposits of
more than $4,000 600. the latter item causing
gain in the cash required against deposits or
81 Oo4 0Nn which. deducted from the increase in
actual cash brought about the change men
toned above in reserve. Total reserve now
stands at SGS1GG25. compared with $6050275
at this time a year ago, and S31.1G0,S75 in the
corresponding period in 1904. Closing prices as
a rule were at or near the best of the day.
According to the belief of the best informed
men in Wall Street there will be a further large
return movement of money from San Francisco
! in the course Of a few weeks. and as a conse-
! quence it is assumed that there will be large
! enough accumulation Of funds in the city banks
! 10 maintain a relatively easy level for loans in
/ the next two months. The action of the Secre-
tary of the Treasury i'm the week in suspending
| special government deposits with the banks
! against equivalent amount of gold engaged
abroad ought TO be considered reassuring de-
| velopment Of the present situation. inasmuch
| as il reflects the improved condition of money
! and the passing of the necessity for further
| emergency measures. While the National City
| Bank engaged 81 .500O gold for import last
| week there probably will be no further arrange
| ments for shipments of the precious metal from
! Europe 10 this country until there is an actual
necessity for such a movement. Current rates
| Of exchange. together with the price of gold
| and money abroad not in favor of gold ex-
| ports 10 New York and It is therefore extremely
! made. The gold engaged by the National City
! Bank taken in Australia, where sterling is
| generally at a premium. A large amount of
/ finance bills matured in the last week but
| these offset by contracts against shipments
/ Of corn later in the season. There was no
J pressure of bills on the market in the week. and
no evidence Of any special inquiry for remit
| tanoe.
| While railroad earnings in the last week were
| large in the great number of issues. there was
| material falling off in the coal roads. including
Pennsylvania. and the net gains reported by
! some companies We're much smaller than in pre-
ceding months, notably in the case of Union
! Pacific, which, of course. was affected by the
| san Francisco earthquake and fire. Pennsyl-
! Vania for the first time in many months shows
/ on the lines of Pittsburg a large falling
on IN gross receipts for the month OF April and
| moderately heavy decline in earnings
| though on the lines west of Pittsburg there was
| large gain, both in gross and net. For the
four months of the current year gross earnings
! Of this road amount to $43 549 209 as compared
| with S37.OS6.S09 in the same time year ago,
and net earnings 81, ,667. .32S against SS.O97
S2s in the corresponding period in 1908. Any
| decline in railroad earnings at this time is
| nkely TO cause unfavorable sentiment in Wall
Street owing 20 the fact that the railroads are
| now making active preparations TO increase
| their obligations through the medium of the
| loan market. The congested condition OF the
l bond market makes IL practically impossible for
u