New-York tribune., 1906-12-09
STOCK MARKET OPERATIONS.

Wall Street expected a poor bank statement
and as a consequence there was no desire on
the part of traders in the early dealings 10 en-
gage actively in speculative operations Oh lhe
long side of the market, but on the other haho
there was no disposition 10 sell snort 10 any
;p,nortant extent nor was there any sign OF
liquidation from substantial sources Prices
moved within fractional variations and al lhe
close of the two hours of business showed smaH
net losses in the majority OF issues the ohIy
fair sized declines being reported in Great
Northern, Northern Pacific and American sugar
Refining American Car and Foundry. Ana
conda Colorado Fuel Mexican Central and the
iron and steel shares firm features and
the greater number Of operators appeared to be
more bulsh on the last named group of Sc
curities for future profits on the long side than
on stocks in any other part of the list Bank
statement figures probably more unfavor-
able than generally expected. AS predicted. the
reserve above legal requirements was wiped OUT
and in its place there was deficit OF S6''o2'l'o'
the actual decline in the reserve item In the
week amounting to ss.15l300. The banks We're
able to reduce loans TO the extent Of only $S-
sS3 800 while they lost in cash holdings slZ'lol-
200 a sum considerably larger than fridays
estimated movement of currency indicated. AT
this time a year ago there was a deficit of 81
a surplus of s9.S652OO above the legal reserve
point
While the cash holdings of the associated
banks are unusually low for this period of the
wear and while there is every reason for the
belief that rates for loans will rule at stiff
level throughout the balance of 1906 and well
into the year, there is no cause for appre-
hension over the outlook, and no excuse for the
idea that the monetary situation has reached a
point that will act adversely upon the industrial
activities Of the country. There is more money
in the United States to-day than ever before in
its history. II is not being hoarded. however.
1t is not lying idle in bank vaults though the
Treasury holds a large amount of funds that
ought to be placed in the channels of trade, ana
the apparent scarcity Of available money for
Wall Street and for general business purposes Is
not reflection of unfavorable features in the
general situation. There is plenty of money to
he had if borrowers are willing 10 pay hlen
rates High rates for time accommodation are
the result of the activity Of funds in trade ana
are not due to Wall Street speculation as some
people ignorantly imagine. The manipulation
of the call rate for money is not affecting any
one outside OF Wall Street, and the very fact that
abnormal quotations prevailing ought in IL
self to correct the evil by reducing speculation
H. securities 10 point that would practically
a
wants call funds outside of Wall Street. and
just long the demand for speculative
commodation continues under present money
market conditions many of the banks and trust
companies doubtless will take advantage of the
situation TO exact more than pound OF flesh
from speculative borrowers.
Stocks have held remarkably strong through
out the period OF high rates for money. Holders
who have been forced to renew loans at current
figures have done rather than part with their
posse ssions. believing that eventually the
Of the stock market will be in direction that
Will carry values to a level which will more
than offset the loss now sustained in paying ex-
orbitant and unwarranted quotations for money.
The carrying charges Of the commission houses
on margin accounts are based the prevailing
rates for funds, and. despite the expectation Of
higher prices the Stock Exchange in the
new year there is little disposition the part
OF the public 10 engage in security operations at
present. though it should be noted that the
s0ers who hold stocks not selling. Most of
the current selling comes from the floor room
traders. Evidently il will require something
vastly unfavora BILE than monetary strin-
gency TO bring about pessimism among the
| owners OF American investment securities.