New-York tribune., 1906-05-03
STOCK MARKET OPERATIONS.

In the early dealings in yesterdays stock mar
ket heavy losses were recorded throughout the
list, values declining in a manner which re-
hected acute decentralization on the Stock Ex-
change. Sales were on enormous scale rep
resenting the operations of speculative pools and
individual traders who no longer were able to
maintain position on the long side of the mar
ket owing to the extreme losses of the last ten
days, which practically had exhausted their
margins. In addition to this selling heavy
pressure was exerted by the bear element
though in the subsequent dealings spectators
who had gone short in the initial transactions
We're active buyers. and as consequence of
their operations and some support from bank
ing interests the entire market enjoyed a sub
stantial rally which carried number of the
active issues to level above the closing of the
preceding day and the greater number of issues
TO range several points higher than the low
points established in the forenoon trading The
nigh grade railroad shares again suffered heavy
losses. especially the so-called Hill stocks while
pronounced weakness was exhibited in the in
dustrlal department Of the market, Anaconda
Tor instance, declining to 226 compared with
Z4o12' the final figure in Tuesdays market The
loss IN this issue, however. was not as large as
represented by the Stock Exchange figures. in
asmuch as its price was quoted on a basis of
1VU When It's real par value is only 25 The af-
ternoon Improvement extends to all parts of the
list, and at the close quotations as A rule were
at or near the best figures of the day While
the total dealings amounted to more than . 400
600 shares. eleven stocks suppIied over tu,o-
thirds Of the transactions Amaleamated Con-
per and Reading being the leaders in point OF
acuVlty Call money advanced to - per cent
"hile sterling exchange declined to point
"nlcn resulted in negotiations for further i'm
ports OF gold from Europe. The banks contin-
ued TO transfer through the Sub-Treasury large
sums to San Francisco
Al the moment conditions in the local money
market are not favorable to borrowers. espe-
ciaiiy IN the case of people who wish to secure
money for stock market operations but there is
nothing in the monetary situation which en-
courages the belief that disturbance is about to
develop. Rates for loans ore high and they
dououess viii continue at a stiff level for a
numoer Of weeks to come owing in great part
10 the urgent necessities of the Pacific Coast
where a large amount Of money will be needed
on the formal opening Of the banks in San
Francisco. Naturally the demand on the banks
at that centre will be enormous, and in order
TO provide for this emergency the East is send
ing money TO the West in large volume ana
when the time comes for an active resumntion
OF financial operations in the stricken cjtv u
doubtless win be found that the San Francisco
institutions will hold a surplus large enough IN
meet extraordinary requirements and possihIa
runs by frightened depositors The rooro g..
that New York is able to import gold and -
remit 1t through the Sub Treasury transfer svs-
tenn 10 California ought to discourage the idoa
that there is any weakness in the banking sir
uation In the Eastern metropolis Money market
conditions will be strengthened by the enormous
liquidation which has been going on in the stool,
market, inasmuch part of this LIQUIDATION
represents the return to the banks of money
borrowed FOR speculative purposes, while 10 a
considerable extent the selling Of high priced
securities will bring 10 the money market fnnds
for the account OF people who are anxious 10
take advantage of the prevailing loan quota
tions.
Though stock market values already have
suffered serious decline. prices for the greater
number OF issues are stil at a level which Il out
OF proportion 70 the quotations Tor time n,ora,,
ana just as long as this discrepancy continues
enoris TO bring about an active resumption Of
oul operations hardly viii be successful More
over the losses which have been suffered h,y
the downward movement doubtless viii be a
factor In restraining speculative activity an the