New-York tribune., 1906-06-28
STOCK MARKET OPERATIONS.

Following brief period OF strength in the
early dealings. general weakness developed
throughout the list under the influence OF heavy
liquidation and pressure by the professional ele-
ment In a number of issues the dealings were
accompanied by considerable decentralization in
prices. notably in the case of Reading. the Cop
per shares. Union Pacific and St. Paul. Inter
borough Metropolitan and United States Steel
common and preferred also We're active features
of the downward movement, while in most parts
of the list greater weakness was shown than in
any of the recent declines, stocks exhibiting
practically no rallying power and no indication
of any attempt on the part of the larger inter-
ests support values. The most striking de-
clines were made following the announcement
that the st. Paul directors meeting would not
result in the publication of-plans for the hnanc-
ing OF the company's Western extension An
other factor. which apparently exerted some in
fluence on prices. was the decision of the fed
eral government to bring suits against certain
railroads for violation of the safety appliance
law. There is no good reason for selling stocks
because railroads are breaking the law, but
Wall Street sentiment is now in such a nervous
condition that the least suggestion of govern
ment proceedings against corporations attracts
pressure in the stock market. The we'll organ
lied bear element believes that If stocks do not
advance they must go down, and it is taking ad-
vantage of current developments and of the
weak position of underwriting syndicates and
pools TO put its theory TO the test. Final prices
as a rule were at or near the lowest of the day.
with the heaviest losses among the active shares
in Amalgamated Copper. American Smelters.
Anaconda Brooklyn Rapid Transit. Colorado
Fuel St Paul. the Hill stocks. Interborough-
Metropolitan, Reading and Union Pacific. Total
sales were more than 100000 shares. Ontario
and Western increased it's dividend, but this had
no effect on values. Perhaps the expectation of
the promised blast from Mr.. Lawson, due to-
day. had something to do with the decline.
Both call and time funds were frmer. In
their operations with the Sub -Trea sury the local
banks have lost since last Friday upward Of
S9O0OOO due in great part to the excess of gov
ernrnent receipts over expenditures. II is esti-
mated that the surplus of the Federal Treasury
at the end of the current fiscal year will amount
TO SIS O0000O but in the month of July the
payments by the government doubtless will eX-
ceed feceipts. as is usual at that time of the
year This. of course. will, in measure. in
crease the amount of money in circulation but it
will hardly be of much benefit to the local none
tary situation. inasmuch as government dis
bursements are made throughout the country
while government receipts chiefly handled in
New York Early in July the Treasury will call
on depository banks for 100000 900. unless the
necessities Of the situation should he urgent
enough to induce the Secretary of the Treasury
to postpone withdrawing this amount of funds
and the banks also will he called upon TO furnish
trust companies with cash incident TO the esta b.
lishment OF cash reserve by the latter institu-
tons in accordance with the law TO that effect
passed by the last state legislature An enor-
nous amount of money will b. disbursed July
in interest and dividends. and Wall Street is
hoping that much of this money will seek rein
vestment in securities. Current conditions af-
fecting the stock market. however. do not sug-
gest the belief that there will be any important
movement of funds into securities simply as a
| result of the July payments
There are too many temporary unfavora BILE
factors in the speculative situation TO say moth
ing of the low position of hank reserves and the
possibility OF adverse crop weather to encourage
activity the part of public operators in
| stocks. particularly the greater number of
prominent issues already are selling at prices
which adequately measure their intrinsic value
! OF course, this last named factor would count
for little if other conditions We're favorable and
! If banking interests were willing to help along
| bull movement. The unfortunate position of
| many Wall Street syndcates is element of
weakness at the present time. while the devel-
| opments affecting corporations continue to ex-
| ercise an adverse influence on public sentiment
| The chief buying power in the present market
| comes from the short interest while much of the
| selling in recent days has been genuine liauida-
| ton OF long accounts, which has attracted
activity on the part OF professional operators
| who believe that there are ample reasons for
| materially lower quotations. Actual uuuida ton
! brings out strong buyers who willing to take