New-York tribune., 1906-12-20
STOCK MARKET OPERATIONS.

There Is no incentive to buy stocks at the
present range of values. with money rates high
and no prospect of an immediate change in the
movement Of loan quotations Large financial
interests practically are compelled to take stocks
offered for sale TO prevent acute Generalization
on the Stock Exchange and it is to these in
terests that the Street is looking for protection
against the development Of panicky conditions.
There a fair show Of strength in the early
dealings in yesterdays market. but in the
greater part Of the day prices in the majority
of issues We're heavy, with pronounced weakness
in the Hill shares st. Paul and Reading Fort
unately. there was no large outstanding public
account If there had been doubtless there
would have taken place a serious decline in all
parts of the list, the position Of money as
reflected both in call and time rates was dis
unctly bad; indeed, It so unfavora bic that
the New York Central Railroad decided to pay
IN advance its interest on bonds, doubtless be-
Aevin8 that other corporations would follow suit
thus releasing a large amount OF money now
being held TO meet January disbursement re-
quirements. This action and the reported pres
enCe Of the Secretary Of the Treasury in town
served to impart some strength to stock values
in the final dealings. while a further decline in
sterling exchange and the report that this coun-
try would be able to secure gold in Paris also
increased confidence in the belief that the ur-
bringing help TO the current strained situation
Gail money avera ged 20 per cent
Firm money the world over represents the cur
rent activity in trade and speculation, and the
iact that nigh lending quotations are the result
OF business expansion furnishes to many owners
OF securities ample reason for maintaining tight
hold OF their stocks and bonds. There is moth
ing IN the position OF money that warrants the
sale or investment securities. unless the owner
believes that he can make better income by
lending his money in the loan market and it is
rOSSihle in
before the end of the year will be accompa~
MED by liquidation of well protected accounts
OF either the speculative the investment class.
1t Is probable, however, that people who have been
loading up with stocks light margins on the
theory that money rates on the downward
PAIN VAL De forced to revise their ideas before
the end OF the year. There is good reason for
the BELIEF that there will be a squeeze in money
before January /, and If such a movement is
accompanied by heavy selling of stocks bargain
hunters doubtless viii flock to the Street in
almost countless numbers. There are many peo-
PIE who have money and who are waiting for
an old-fashioned drop in securities prices. They
believe that monetary conditions will bring
about just such decline. and they are holding
i theH resources IN reserve for the purchase Of
the issues which weak marginal owners will he
unable TO carry in a sumpy market. Many
small operators in stocks were forced out of the
market IN tuesdays decline, and the heavy ten
dency yesterday compelled others to follow
especially IN the high grade issues. Stocks Of
the st. Paul, Great Northern. Northern Pacific
and Canadian Pacific class are pcor proposi-
Iions for people Of small means as thew are
quite apt 10 huctuate in a manner that brings
destruction TO the shoestring margins which
some silly traders believe sufficient 10 carry
them through sickly markets
Call money and time funds We're practically
al prohibitlve levels yesterday, far as the
ordinary borrower was concerned. and to those
who found IL absolutely necessary TO secure ac-
commOdation the trust companies, foreign banks
and out of town lenders supplied the chief part
OF the amounts required. Out of town money
ls attracted to this by the stiff rates for
funds. but the fact that in all departments OF
the loan market rates remain at a high level
proves conclusively that the available supply of
money Is not large enough to meet the needs Of
wan street and general mercantile borrowers
Hlgh money IS beginning TO interfere with busl-
ness operations but fortunately the outlook
faVors easier conditions after the middle of jan
uary. And # before that time the stringency
should become most burdensome to our mer-
chants the Secretary of the Treasury doubtless
VIII take further steps to return TO the channels
OF Trade money which is idle in the govern
lnent vaults. Treasury receipts continue to run
neaVily in excess Of expenditures and IT is TO
ne hoped that our Senators and Congressman
VIII take speedy steps TO make lawful deposits
~ the banks OF customs receipts which under
the present law are paid over to the govern
nent, TO lie inactive at the expense OF the busi-
ness interests OF the country.