New-York tribune., 1906-11-09
STOCK MARKET OPERATIONS.

While there was no important activity in yes
terday's stock market the general movement Of
values in the forenoon dealings in the al
rection Of higher quotation though this i'm
provepent subsequently was lost with net losses
at the close IN the greater number Of issues.
Commission houses practically were without
orders for public account, and the more i'm
portant speculative interests were not disposed
TO operate TO any great extent on either side.
their attitude doubtless being based on the
money market situation and on the election e
suits, which appeared less favorable than they
did Wednesday morning. In Analgamated Cop
per, st. Paul, Northern Pacific Reading, Union
Pacific and Brooklyn Rapid Transit fair
amount Of business was reported, but the deal
ings in these stocks. well in other parts
of the list. originated a rule. the floor
OF the Exchange There was some pressure in
Brooklyn Rapid Transit. spectators selling the
stock on the theory that the success of the Dem
ocratic candidate for Attorney General might
be followed by aggressive action against the
company on the lines laid down by the Demo
cratic speakers in the recent campaign and pos
sibly by the unseatng Of Mr.. Mcclellan
Mayor In the afternoon traders took the bear
side in the belief that as long as the public
would not buy stocks there would be greater
profits in operating for the short account. An
advance in call money 10 10 per cent also served
TO induce bear pressure. but with the exception
of Brooklyn Rapid Transit. Erie, Great North
ern Northern Pacific. Reading and American
Wooen declines were unimportant- A loss OF
more than 3 points in American Woollen
due selling following the announcement of
proposed increase in the companys preferred
stock. Last prices generally were at the lowest.
Money market conditions in New York, while
not favorable 10 extensive operations in secur-
tiles. do not suggest the development Of dis
turbance in financial centres though they do
foreshadow the continuance of stiff rates for
loans throughout the balance of the year. Re
serves OF the New York banks are low at a time
when the demand for accommodation in mer-
camille circles IS heavy. and the requirements
which must be met in the future
doubtedly will make necessary heavy liquida-
tion I'm loans else further assistance from the
federal Treasury. Although loans have been un-
duly expended in the last year this fact in itself
does not mean that the banks are in a danger
position. outstanding loans are secured
by the best collateral. and in consequence bank
ers are not anxious to institute a drastic con-
traction of their loans, especially as such
movement would have adverse effect on the
Wall Street markets well upon the general
business situation in this country. The banks
need more cash, and as the government re-
ceipts running in excess OF expenditures
federal Treasury should not be returned to the
channels of trade, either through further de-
posits with national banks or through the pay
ment in advance of government bonds which
reach their maturity next July. Local bankers
have the assurance of the Secretary OF the
Treasury that the monetary situation is being
closely watched by government officers and
that every effort will be made by the govern
ment TO prevent trouble IN the money market
which might occur a result Of current de-
peted bank reserves and a result of our in
efficient currency system.
The Bank OF England made no change In its
discount rate at its weekly meeting yesterday.
The position Of the great British bank has been
materially improved IN the last week and IT is
not now expected that the necessity will arise
for an increase above the per cent level which
was established three weeks ago. Foreign ex-
change is still in favor OF this country but lust
soon as money begins TO return to New York
from the interior sterling undoubtedly will move
10 a point which will make II possible for Lon
don 20 draw gold from this side of the ocean
The prospects OF gold exports from here early
in the new year do not worry bankers in this
city. inasmuch they believe that the begin
ming Of such movement Will come at a time
when bank holdings have been increased both
by shipments OF currency from other cities TO
New York and by an addition to cash holdings
from the national Treasury. The current posi-
hoh OF money AT TINS centre doubtless will act
as restraining influence in stock market on
eratlons for number of weeks to come but I'm
well Informed Wall Street quarters II IS not be-
ieVed that the high rates for loans viii causa
material declines in stock market values unless
The banks should te compelled TO liquidate loans
involving speculative accounts the Stock Ex-
change The general outlook is extremely favor
able for activity ana higher prices for stocks
just as soon as money returns TO a normal level
and IN the mean time il is quite likely that peo-
pie who have idle funds will be willing hnvers
on all reactions Commission houses are ad-
VieinS their customers 10 buy stocks on dfc.i ines