New-York tribune., 1906-03-27
STOCK MARKET OPERATIONS.

Transactions I'm yesterdays stock market were
relatively heavy in volume and in the greater
part Of the five hours of business prices moved
in the direction OF higher quotations In the
high grade issues, such as Northwest Great
Northern preferred, Northern Pacific and Union
Pacific. marked improvement was recorded, the
advances being established without the accom-
paniment Of news developments affecting the
properties. Reading also a strong feature,
chiefly on buying by the short account. traders
taking the view that the recent decline in the
stock had discounted a strike, If one should de-
velop and that even in the event OF labor trouble
the companies would be in a position to supply
coal to consumers indefinitely. though at better
prices. Wall Streets ideas on the effect of a
coal strike vary from day to day and yesterdays
extreme bullishness on the outlook may be fol-
lowed to-day or tomorrow by complete reversal
Of opinion Commission houses were not active
factors, most Of the business originating on the
floor OF the Exchange, but sentiment IN COM
mission houses appeared to be more cheerful.
and some brokers talked in a most optimistic
way over the probability of a bull movement in
April decline IN the local exchange market,
both on London and Berlin. and an advance in
Berlin in the exchange rate on London brought
the local market to a point at which gold may
be imported from Germany a profit In the
last hour the market was active and strong
day. The standard railroad issues the Industrial
shares including the copper stocks. and the coal
securities were features
Money opened the week at a firm level though
in the day the tendency was easier. with no in
dication, however OF a material decline In rates
in the near future. The excess increase in bank
reserves I'm Saturdays Clearing House return
and the probability Of a growing demand for
funds IN the West and South in connection with
the spring trade and the beginning Of the plant
ing season discourage the expectation OF cheap
money for a considerable time to come, but
fortunately there are indications in the foreign
exchange market which induce the belief that
this country will bring in much more gold
from Europe Discounts abroad are relatively
easy, while local exchange is being affected by
large exports OF merchandise from here, heavy
drawings by Stock Exchange houses against
bonds sold abroad and against loans negotiated
on American securities in foreign financial cen
tres. If gold comes in in large volume the re-
lief afforded this market Will result in lower
rates for money and possibly much higher prices
for securities. There is an increasing inquiry for
loans in connection with mercantile trade, and
borrowers willing TO pay current rates.
though high. in the confident belief that their
profits from expanding business will more than
Offset the stiff figures paid for accommodation.
Since Friday night the local banks have lost
nearly $1,0OOOO0 on their operations with the
Sub-Treasury.
Traders In stocks-that is, the so-called pro-
fessional element-are rather mixed in their opin-
ions regarding the probable course of prices in
the immediate future owing to the uncertainty
the coal labor situation the condition Of
money and the difference in ideas to whether
or not the decline that has taken place since the
culmination of the bull movement In January
has discounted the unfavorable features which
have developed I'm the last two months. There
are some operators including well known COM
mission house brokers, who believe that there
will be good sized rally in April, the month
when advances generally take place. while there
are others who feel that the market has not gone
through liquidation sufficiently large to make
possible the resumption Of bull activity from the
current range Of quotations. Stocks. however
in a much improved condition as compared
with few weeks ago. Many weak holdings have
been sold the securities passing to strong hands
while in the same time there has been ma
terial increase in the short interest, which al
ways makes for strong technical conditions as
far as a beginning of bull speculation is con-
Cerned.