New-York tribune., 1906-04-07
STOCK MARKET OPERATIONS.

After a further exhibition of weakness in the
morning trading stock market values recovered,
I'm many cases the improvement amounting To
more than I per cent. while at the close net
gains we're shown in the majority Of issues.
Strength in the afternoon followed an easing
off in the money rates and renewed weakness
in foreign exchange. the rise in values being
due 10 covering Of short contracts and buying
by substantial market interests. Exceptional
strength in Pennsylvania also was a factor in
the afternoons improvement Total dealings in
this issue We're larger than any recorded in the
stock any day in many months. hut the
movement was not due TO news developments
affecting the property, buying apparently being
based on the discovery of a large short interest
in the stock and the realization on the part Of
traders that the price Of the issue cheap
in comparison with many other high grade in
vestments In addition to Pennsylvania other
strong features were Amalgamated Copper. Ana
conda Illinois Central. Erie. National Lead and
Union Pacific. In the late dealings Anal
gamated Copper. which was one of the weakest
features in the morning enjoyed sharp adj
vance under the influence Of buying which
supposed TO be for the account of the interests
who recently were active in pushing up the
price Of this issue. while the greater part of the
list exhibited decided strength until the close.
Announcement Was made shortly before the end
engaged some gold for import
According 10 the known ovement Of money
in the week the local banks have lost over
SS.O0000o in their cash holdings, owing To the
large excess Of payments To the Sub-Treasury
above government payments to the banks and
to the active demand for funds from the in
terror The high rates for money suggest the
probability Of a material contraction I'm the cash
item in the weekly bank statement. and unless
there has been a large reduction in loans the
reserve above legal requirments doubtless wiz
show big falling of compared with a week
ago The money question is the chief topic Of
discussion I'm Wall Street al present. and it is
likely To remain the most important factor in
the financial community for "A number Of weeks
10 come. as there is no reason 90 believe that
there VIII be immediate return Of normal
conditions. Exchange is at the point which
doubtless VIII result in large gold shipments 10
this country. II is quite probable that CON
siderable movement Of the metal this way will
be inaugurated next week. and in some circles
il is thought that upward of $10,o0OO0O viii be
engaged unless there should be a sudden change
i'm exchange rates and foreign discounts. That
inquiry for gold for American account al
ready has developed in London is reflected in
the advance in the price Of bar gold and in
slightly hrmer open market rate for discounts.
Wall Street believes I'm taking an optimistic
view Of the present monetary situation and as
a consequence il Is not throwing over its stocks
10 any extent. believing that there will be no
tual disturbance and that relief from gold i'm
ports and possibly government deposits in New
York banks viii offset the drain ON this centre
for funds for out OF town points. There has
been. OF course. calling Of loans. which has
forced certain amount Of speculative liquida-
ton. while there also has been some selling Of
stocks 10y operators who prefer TO take advan-
tage Of the high rates for loans by lending their
money rather than keeping il tied up in securi-
ties. Nevertheless, stocks as a rue in strong
hands. Commission houses are not loaded with
weak accounts, and the fact that the high rates
for money have had such a relatively small ef-
feet on prices proves that the stock market is
not made up Of overextended weakly marg1ned
accounts 1t would be a good thing for the mar
kot, however, II further liquidation Of specula-
tive holdings would develop iUasmuch as such
a movement would serve 10 relieve the money
market and place values a a level which would
oe more attractive 10 investment purchasers