New-York tribune., 1906-11-17
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market were
heavy in all the leading issues on q movement
of values which carried the greater number Of
issues TO prices well above the closing figures Of
the preceding day. While there were reactions
in various parts of the list in the afternoon,
owing profit taking sales. the majority OF
shares showed net gains with the chief i'm
provement in the active list In Reading Anal
gamated. Union Pacific. New York Central,
Great Northern and Northern Pacific. An easier
tendency in the money market and favorable
forecast of to-day's bank statement were factors
which created bull sentiment and encouraged
the belief that for the present at least there
would not be a return Of the stringent monetary
conditions which ruled early in the week. For
the first time since last August the banks
showed a gain in their operations with the in
terror, and. according to the known movement
of money, cash holdings increased more than
S700 000 due entirely to the excess receipts from
out of town points. While the relaxation in
rates has been due in great part to the placing
Of out of town money at this centre, the pros
poets favor material improvement in the weekly
bank statement as compared with last weeks
poor showing. when. it may be recalled, deficit
in reserve was recorded. 1t should not be as
sumed however. that the easier position of the
loan market means that a period of cheap
money is about to develop.
The outlook does not favor low rates for loans
in the balance Of the year, but this apparently
does not worry Stock Exchange operators, who
in large numbers now committed 10 the
long side of speculation. The strength in the
market yesterday was not confined to special
ties, being more generally distributed than noted
in the preceding days of the week. and the
character of buying suggested to many market
followers that, notwithstanding the chance of
in tha hal OP
of stocks would be safer than sales. Wall Street
favorably impressed with the recommended
tions which will be made to Congress in the
interest Of currency reform, and the plan sug-
gested by the joint conference OF the bankers
and Chamber of Commerce committee generally
received the Endorsement Of local banking IN
terests. If this reform plan should become a
law the Clearing House banks of this city would
upon the basis of their present capital and bond
secured circulation. be able to issue S26 $50 900
Of credit notes, and 1t would only require in
terest rates the basis Of a trife over 3 per
cent to bring out large amount of this emer-
gency currency In the last half hour Of busi-
ness the stock market exhibited greater strength
than at any time in the lay, closing prices as a.
rule being at the highest.
Firm money does not yet menace the indus
tries Of this country and It is contended in some
quarters that just as long high prices prevail
in the cost OF living which some people believe
means a large margin of profit for producers
advanced quotations for loans cannot upset
business activity. Nevertheless, there is good
reason for the theory that excessive high prices
and high money combined may serve to bring
about an unfavorable change in trade conditions
particularly credit facilities have been greatly
overstrained in the last year. not only in the
United States but abroad we'll Already new
undertakings have been interfered with by the
position of the loan market, yet it is probable
that the investment markets will be called upon
/! in the year to finance an enormous amount
/ of capital obligations. The railroads through
out the country have increased wages because
they believe that the transportation business
| will continue active for another year at least
and this expectation Of activity induces them
| to plan for improvements extensions and new
| rolling stock to handle the increased volume Of
traffic which undoubtedly will develop, If cur
rent conditions IN the transportation business
| count for anything. 1t is estimated that re-
Quirements Of the railroads already in sight for
! 1907 will call for over $500 600 in new
capital issues, and In many quarters the question
of how these demands TO be financed unless
there should be most radical change in money
market conditions at home and in Europe is be-
coming Of vital interest
With a continuance of prosperity, however.
the chances are that the money will be forth
coming for the railroads. but 1t may come to
pass that the companies will assume obligations
which at some future period viii force them
into a serious position. particularly IN view of
the fact that increases in dividends and wages
have added tremendously to the payments
which the roads must make In the next year.
AIr. Hill says that the country needs 100000
miles of railroad In addition TO the mileage