New-York tribune., 1906-11-02
STOCK MARKET OPERATIONS.

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Stock market trading showed an Increase in
activity as compared with the dealings of the
preceding day, though large part of this gain
due to the expansion in transactions in
Pennsylvania. which advanced in the early
trading on the expectation Of advance in its
dividend and enjoyed further improvement in
the afternoon following the announcement that
a straight per cent rate had been declared.
Naturally the rise in this issue exerted favor
able influence on other stocks. and many sub
stantial advances We're made, though in some
cases considerable selling pressure was reported,
notably in New York Central which was offered
for sale by prominent houses The issue closed
however, at a net gain. while the rights the
new stock made a low record at AS, COM
pared with 6as, the quotation established when
they first dealt in on October 16. Much of
the buying in Pennsylvania represented cover
ing of shorts. commission house purchases of
the issue for long account and for investors be-
ing small. Notwithstanding the barge earnings
of the Pennsylvania company and the increase
in the dividend, there is at present no great
speculative enthusiasm over the shares, owing
to the general belief that the higher dividend
foreshadows another issue of stock for the pur-
pose of raising additional funds for the vast i'm
provement work now under way along the COM
pany's lines. The entire list decidedly
strong in the afternoon, despite a 9 per cent
rate for call money, with the chief improvement
in Reading. Pennsylvania. Union Pacific, North
Pacific, Great Northern and st. Paul.
Weakness in Chesapeake & Ohio was due to
selling based on the failure of the directors to
increase the dividend, while heaviness in Mexi-
can Central followed the announcement that the
negotiations for the purchase of the company
by the Mexican government had been broken
off. Last prices throughout the list of active
issues were at the best figures of the day
Call money rates continued to rule at stiff
level, with indication of a decline in quota
tions to an easy basis in the immediate future.
The outlook favors firm rates for funds for
the rest of the year, and It is not unlikely that
there will be frequent periods of high quotations
in the call department of the market before the
beginning Of 1907 Nevertheless no important
disturbance is expected, and 1t is not believed
that the movement of money will exert any
more influence on securities than recorded
in the latter part Of 1908, when quotations ran
up to exorbitant figures. That conditions in
London have not been materially improved is
reflected in the decision of the directors of the
Bank of England not to reduce the minimum
rate of discount from the per cent level estab-
lished two weeks ago, and in the weekly return
of the bank which shows a slight falling off
compared with the figures of last week Just
as long as money remains firm in the British
capital there will be more or less uneasiness in
the financial markets of the world, though there
is reason why New York interests should
become alarmed over the position OF affairs
abroad. especially as this centre is now practi-
cally in control of the international exchange
market. large amount of securities will ar
rive from Europe this week and next week, but
these issues paid for the day they were
sold through the medium of the exchange mar
ket. and they will not figure. as some people
appear to believe. as factors In the present loan
or stock market. The idea that the arrival
of these securities will exercise an adverse in
fuence on the local situation is based on a
misconception Of the facts in the case So far
in the current week the local institutions have
lost more than S2.50O0OO on their operations
with the Sub-Treasury, while the condition Of
domestic exchange suggests that a heavy loss
will be sustained on the interior movement of
currency. There has been. however. consider
able liquidation on the Stock Exchange which &
of course. has served to reduce loans of the
Clearing House institutions but It IS not prob
able that to-morrow's bank statement will make
such favorable showing in the matter of loans
as reported in last weeks exhibit
Stock market conditions are somewhat mired
a. 'ie present 'iiiie' o"llS 10 the money market
situation and the uncertainty over the outcome
OF the election. but far as investors are con-
cerned there appears to he no uneasiness either
over politics the outlook for money II Is
quite freely admitted that In the event of the |
election OF Mr.. Hearst there will be a decline in
stocks but the idea is not at all general that
the success OF the Democratic party I'm this
state VIII tend to upset the country's industries
and In consequence investors are not Worrying
over the possibility of reduced dividends or re-
duced investment values. If there should be an
active selling movement following the election
stocks offered will be taken by strong buyers.
and the chances are that the decline will not