New-York tribune., 1906-09-26
STOCK MARKET OPERATIONS.

On active volume of business stock market
values moved In the direction of lower quota
tions in the greater part Of the day. net declines
in the leading issues amounting to more than !
per cent, the chief weakness being exhibited by
the copper stocks. American Smelters, Balti-
more & Ohio. Atchison. St Paul. New York Cen
tral, Northern Pacific, Reading Union Pacific
ana Brooklyn Rapid Transit. Declines repre-
sented active operations the part of the trad
ing element TO bring about lower quotations,
selling by commission houses and some liQuida-
tion by speculative pools which for a long time
have been committed to the bull side Of the
market The sharp losses in the afternoon
were accompanied by reports that Mr. Hearst
had been nominated for Governor by the Demo
cratic convention. and the weakness throughout
the day was ascribed TO the possibility Of the
surrender Of the Democratic party to Mr
Hearst's Independence League. Naturally con-
servative banking interests are not favorably
disposed toward the campaign OF Mr.. Hearst for
the governorship Of this state, but they do not
believe that actual investment values will suffer
as result Of present uncertain political move
ments- Overspeculation in stocks and money
market distress supply better reasons for bear
activity in securities than current political un-
certainties. Perhaps In yesterdays market the
Leading interests noticed with some alarm the
carrying charges on American stocks on the
~-@N~4-o@Ae5CB
to per cent; unusual figures indicating dis
tnctly unfavorable attitude abroad on specula-
ton in our securities at this time of high money
rates The ordinary speculator paid little at
tention TO this development, but it was evident
thar experienced followers OF the market ac-
cepted the attitude OF foreigners as sufficient
reason for caution in operations on the local
exchange. In the last hour the entire market
was weak, While at the close the leading issues
/ sN -
declaration Of increased dividend on Ana
conda failed to help prices as evidence IN the
case OF Anaconda shares. which declined IL
| points
Inc demand Tor monetary accommodation in
the United States and in Europe is unusually
heavy and the prospects of easy rates for, loans
IN the balance Of the year are not at all prorn
ising. Indeed. the chances are that quotations Z
Tor time funds VIII rule at a high level for q
hufnDer OF months to come, and though call
money at the moment is not particularly stiff
there Is little reason for the belief that in this
section Of the money market rates Will receda
TO cheap level. The current easier tendency
IN call loans is due TO the lighter volume OF
! business on the Stock EXCHANGE the reduction
/ IN speculative operations representing wise
disposition on the part Of prominent Wall StrAst
interests 70 check bull activity ana to efforts 70
discourage public transactions In securities until
| normal conditions develop IN money. The seri
! Gus position Of the monetary situation ts re
nected in the anxiety of the New York banks IN
/ secure gold abroad and IN their frantic anpeals
! 10 the Secretary Of the Federal Treasury m
/ throw government money into national hanks
secretary Shaw is now being urged to make
| further deposits with depository institutions.
/ ana ne Is being asked TO pay in advance govern
heht ponds which mature next July Owing TO
Ihe excess OF speculation in Wall Street business
men are finding IL difficult to secure accomrno-
oatioh at reasonable rates. Government aid IN
the interest Of business necessities fs warranted
/ put II IS 10 be hoped that any assistance which
lhe treasury extends to the banks will not ba
uSeu 70 roster DUH speculation in the securities
/ markets.
Inc larger stock market interests have not vet
| peeh abe to dispose of their holdings Specu-
/ iaOVe pools and syndicates are tied I'D with
iafse amounts Of stocks which they ara anxious
10 sell to the public; YET investors ord a,,
specuIators refuse TO relieve the Wall Street
| bulls OF their wares ana IN corsao,,,.- -, =,
eAeeHeht reason for the danger signals which
! are being waved in circles y,bAra ,aa..a ~, =, :
heavy IN the event OF Jioui5a+,o - ~
reduction in the loans of the essoc,o.,a -,
bahK reserves are low and ths hest ,ro. 49, :
present cohoiuo1s 10 increase the resar-va .ho,,.
iesai requirements would be 10 hr,ne, .ho -.
account 10 lower level reduc,ton os ,oa,.
"ouIo serve TO decrease deposits ana =, -
"ou1o aud 10 the legal holdings OF ,ba rIoa,, >
/ Rouse institutions Heavy reduction - 80
! "ouIo mean the liquidation TO an eporr, =
/ tent OF speculative accounts on tba c. -.
chanse' ana large losses no doubt tn sneo,I.t.N-
who have INDUCED in operations -,