New-York tribune., 1906-09-21
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market were
made up in great part of the operations OF the
professional element, commission houses being
unimportant factors. while there was little indi-
cation OF aggressive trading for the account OF
the substantial interests who actively identi-
fed with the long account. In the greater part
OF the day prices moved In the direction OF
higher quotations. closing figures showing net
gains in the majority OF issues. with the chief
Improvement in Baltimore & Ohio. Pennsyl-
vania. Reading. Southern Pacific and Union Pa
cihc Dealings in Reading were again heavy.
but the operations IN this stock were not accom-
panied by extensive purchases for public
count. outsiders doubtless holding the theory
that at its present price the issue is not an at
tractive speculative or investment purchase.
The idea that Reading VIII be advanced 20
higher dividend level naturally encourages trad
ing interest in the stock. but investors show no
disposition 20 buy the issue merely on Wall
Street rumors regarding It's future investment
return Much Of the days advance was due TO
covering by traders VINO were short OF the mar
ket Among the high grade issues Pennsylvania
attracted considerable attention. owing TO the
fact that purchases were made by brokers who
recently have been active in the speculation In
Reading. Already Wall Street gossip intimates
that there will be an increase in the Pennsyl-
vania dividend. but rumors OF this character are
not believed In well informed Wall Street circles.
There investment buying either In
stocks or bonds. and bond houses reported an
extremely inactive market for all classes OF rail-
way mortgage issues
In the London market bar gold was advanced
yesterday. while discount rates in the foreign
capitals were frm though there was no change
IN the Bank Of Englands minimum quotation
for money The demand from New York for
gold doubtless will continue for a number Of
weeks. though the prospects of obtaining the
precious metal IN the foreign markets 10 any
further extent are not at all promising. London
and Paris bankers apparently are not disposed
10 send money 10 the United States for the pur-
pose OF helping out stock market spectators.
but the interests who are behind the present
operations in securities this centre assert that
they viii be able TO secure large amounts OF
gold in South Africa and Australia, irrespective
OF tho regular movement OF money from those
points 20 London. Frantic efforts are being
made by the so-called Wall Street powers 10
bring about higher prices for securities and the
people who are supporting this movement are
searching the world over for gold in order 10
establish lower quotations for loans in money.
Cheaper rates for loans will attract public in
terest IN speculation. but the demand for money
in ali parts Of the country from interests con-
nected with the upbuilding OF the commercial
Wall Street spectators may be compelled 10
duce their commitments-that is. II the banks in
New York decide 10 support merchants rather
than traders in securities The larger operators
in stocks. however. believe that they will be
able TO carry prices TO a higher level despite
money market conditions. their confidence being
based on the expectation OF loans for stock mar
ket purposes by the great capitalists OF the
country. II is fact that many OF our million
aires are taking advantage OF the present rates
for money and investing large sums in the
loan market. and II was announced yesterday in
well informed quarters that interests connected
with the so-called Rockefeller party were eno--
nous lenders both on call and time contracts
Although prices CT securities are selling many
points above attractive investment level.
spectators are willing 10 buy the best grade Of
issues at current quotations in the belief that
following a readjustment in the money market
prices for all shares, including the sO-called
eats and dogs OF the Street" will be advanced
10 a level many points above that now prevail
ing. Conditions affecting the intrinsic value OF
American securities are unusually strong. and
all indications point toward further improve
ment In the country's business. which, OF course,
means Increased value in ali railway and in
austria! Investments; but people who have
money 20 invest for widows and orphans are NOT
buying stocks at present prices Their attitude
however, Will not interfere with speculative
manipulation, particularly IN the case OF such
stocks as Reading Union Pacific Pennsvlvania
New York Central. ST. Paul and Great Northern
The last named stock is selling many points
above its actual worth. while the same thing
may be said OF Reading. which al its present
price gives only small return TO BUYERS
wall street believes that the dividend on Read
Ing stock Will be increased. but the market
quotation OF the security already has more than
discounted Improvement In its investment Weld
Canadian Pacific is being absorbed by careful
buyers who believe that the stock is intrin-
sically more valuable than Great Northern and
the fact that Canadian Pacific has not been
al Hat
its value a future proposition with careful
market observers. u n interesting 10 nots ,bst