New-York tribune., 1906-12-22
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market
showed falling off in the volume Of business
as compared with recent heavy totals, the
greater part Of the dealings originating on the
floor of the Exchange. rather than in commits
sion houses. While the movement Of values
exhibited considerable irregularity, the final
changes presented many more net gains than
losses. with the chief improvement in American
Smelling. Atchison, St Paul. Great Northern.
Peoples Gas and Union Pacific. The move
rnent in Canadian Pacific carried the price Of
that issue above Northern Pacific, and inter
ests identified with the operations in this stock
predicted that it's price soon would cross that Of
Great Northern. There IS still large short in
terest in this security, and it is quite evident
that the people who have been accumulating it
for many months believe themselves in posi-
tion to compel the shorts 70 cover on an ad-
vancing price level An easier market for call
loans and more favorable reports from London
regarding the financial situation at that centre
effective influences in creating a cheerful
sentiment in speculative circles. but they failed
TO attract an active outside demand for any Of
the leading issues. In the early dealings prices
a rule under the closing OF the pre-
ceding day. but in the subsequent transactions
losses were fully recovered. except in the
Of Northern Pacific. Reading and American
Ice. which ended the day with net declines of
l per cent in the two railroad stocks and per
cent in the industrial
According to the known movement Of money in
the current week. the local banks have gained in
their cash holdings on their operations with the
Sub-Treasury. but the chances are that local
Withdrawals Of funds incident 10 the require
ments of the holiday trade have been large
enough TO onset in part the movement of money
from the government. If, however. there has
been as is generally believed. large decrease in
loans. there doubtless will be moderately favor
able showing in the weekly bank return. which
last Saturday presented deficit in the reserve
item of more than $1,O0OO00 compared with a
deficit in the week before of more than S6,O00,-
coo The government relief measures have been
effective in offsetting for the time the heavy
excess Of government receipts over expenditures
as far as local bank accounts are concerned, but
II is not probable that the recent action of the
Secretary Of the Treasury in increasing govern
ment deposits and government relief will bring
about an increase in bank holdings large enough
70 reduce loan quotations TO easy level. There
is the chance. however. of further government
assistance inasmuch the Treasury holds a
large surplus in addition TO safe working bal
ance, and II could, therefore, without disturbing
Treasury conditions, either deposit additional
securities with national banks or else pay with
out rebate more Of the government bonds which
fall due next July. government surplus is
desirable. but large amount OF idle money in
the Treasury does no good to the government
while it intereres seriously with business opera
tions. particularly these funds represent
money withdrawn from the channels Of trade.
Record breaking imports of merchandise are
bringing to the Federal Treasury record break
ing customs receipts, and at the same time
the government receipts on internal revenue ac-
count and miscellaneous sources are unusually
heavy. the burden OF which falls chiefly upon
the New York banks, while the government ex-
penditures are distributed throughout the coun-
try. The idea that there will be a large flow
of currency from the interior in the first month
OF the year accounts for the cheerful sentiment
in speculative circles over the monetary outlook.
but # should be borne in mind that the receipts
Of money from the interior in the last few
weeks have been unusually light. despite the
high rates prevailing for loans at this centre
Money as a rule comes TO New York from the
Middle West in large volume in the last month
OF the year. and IN the first two months of the
succeeding year heavy receipts are customary
The present situation. however is altogether Diff
ferent from any which has heretofore prevailed
and a small movement OF funds TO New York in
place Of the expected large flow. OF currency
would not surprise well Informed observers Of
business conditions throughout the nation. The
demand for accommodation and the general ac-
uVity Of money in the channels of trade ara
enormous. owing 10 the expansion that is going
on IN the countrys Industrial activity. and as a
consequence the New York banks may not be-
able To increase their reserves to any great ex-
tent through the interior movement of money
IN The next few weeks. The disbursements
winch VIII be made January ! for interest
ana dividend account viii serve 10 maintain
rates tor loans at stiff level next week. but
the redeposit OF these funds after the turn of
the year VIII help in measure 70 relieve the