New-York tribune., 1906-12-07
STOCK MARKET OPERATIONS.

Trading in securities was light in volume on
a movement OF values which showed weakness
in the majority OF shares in the greater part Of
the five hours Of business. There was, however,
no extensive liquidation though there appeared
to be more stock for sale than recently reported.
especially in Pennsylvania. Reading, st. Paul
and Union Pacific. in which net losses averaged
more than 1 per cent. Canadian Pacific pre-
sented the only important exception to the down
ward tendency. its price being strong under the
influence Of active demand from interests
who have been bulls on the issue for many
months and who believe that the intrinsic worth
Of the security is as much as that Of Great
Northern, which is selling many points higher
The latter sold ex the beneficial interest in the
ore land deal. opening at $50 ard selling down
TO 234, a maximum loss of So per cent from the
preceding day, while the ore certificates aver
aged a price OF So. which represented a good
part Of the decline in the Great Northern stock
as compared with its closing figures Wednes-
day. Money market conditions served 10 re-
strict speculation to a greater extent than on
any day in the last week, and there appeared
TO be an increasing disposition on the part of
commission houses to advise caution in the MAX
ing Of purchases at the current level under pres
ent quotations for funds which yesterday were
as high as % per cent for call loans and S1A
per cent for sixty days time accommodation.
The general market closed dull and heavy. with
moderate distribution in the Hartman stocks
under way.
While the decision Of Secretary Shaw to nay
in advance interest due on government bonds
from January TO May, the amount of money so
disbursed will not serve to help the monetary
situation to any material extent, as far as an
actual increase in the amount of money in cir
culation is concerned, but It will encourage op-
~ fnrGf IN
to feel that the government of the United States
stands ready to prevent acute disturbance in
industrial circles a result of high rates for
funds Secretary Shaw does not believe in
drawing on the Treasury's surplus at this time
in order to increase bank holdings, though he
announces his Willingness to do so If the current
upward movement in loan quotations should in
terfere seriously with the present business pros
perity Of the country. The prepayment of the
interest on the government bonds will not i'm
pair the Treasurys holdings. especially as the
settlement Of these accounts will be more than
offset by the governments excess of receipts
over expenditures in the course of the next two
months. Secretary Shaw's attitude regarding
the money market should not be considered an
invitation for stock market operators to start a
speculative orgy. and fortunately Wall Street
is exhibiting moderation in its transactions on
the Stock Exchange. which, II continued, un-
doubtedly will insure an active bull movement
after the turn OF the year, when receipts Of
currency from the interior ought to be large
enough TO bring about substantial Improvement
in bank reserves. It is believed that to-mor-
rows statement of the Clearing House institu-
tions will mako poor showing, owing to the
large loss the banks have suffered on their oper-
ations with the Sub-Treasury, but it may he
that loans have been liquidated 70 an extent
mill he ~ he
cash as az influence on the reserve above legal
requirements
Notwithstanding the fact that the Bank of
England has been able TO restore its proportion
of reserve to liabilities to a normal figure for
this season OF the year the governors OF the in
stitution have made no change in the minimum
rate of discount which remains at the unusually
high quotation Of per cent London fears an
American demand for gold IN the event of
lower money in the British capital and the re-
fusal Of the Bank Of England TO reduce its rate
IS fair warning TO New York that every effort
will be made 10 prevent shipments OF the
precious metal 10 this side OF the ocean. The
percentage OF reserve TO liability now stands at
44S4. compared with 4492 a week ago and
1885 at this time in 1905. Money will be high
throughout the balance OF the year. but this
fact should not discourage the holders OF Amer
lean investment securities. Tight money does
not reflect boarding OF funds or unfavorable
cohoitions IN the position of the country's in
dustries. Business prosperity is responsible for
tne activity In the money market and the
suehsth or funds based on such an argument
% goes not cause any alarm in financial circles
Ihe banks are heavily loaned but their loans
are secured by gilt edged collateral representing
ule grown and progress OF this great nation
IhcldehtalIy the banks making more money
ulah ever before in their history IL is quite
esiueh', however, that some of the financial in
elil9.ions " stI.s are taking advantage of monetary
cohuiuohs 10 manipulate the loan market that
Is. TOT call loans. reference to which was made
yesterday by an eminent banker in an address
befOre the thamher ~ l,nn,r,nrca