New-York tribune., 1906-12-08
STOCK MARKET OPERATIONS.

Money market considerations supplied stock
market traders with reasons for dealing
both sides Of the account in yesterday trarsac-
lions and as result Of the various fluctuations
IN the FIVE hours Of business final prices showed
substantial net gains in the greater number Of
issues Stocks were sold IN the early operations
or the expectation Of high rates for money
throughout the day and on the theory that to-
DAYS bank return win make an extremely poor
showing, while in the afternoon the entire list
Of active securities was bid up on the report that
Secretary Shaw would take further measures 10
relieve the stringenCy IN money, which IS be-
ginning 10 impose q serious burden upon the
mercantile and investment community. And
then break IN sterling exchange 10 point
under thar which induced the Bank of England
TO advance its minimum rate Of discount 70
per cent II October encoura ged the belief IN
speculative quarters that this country soon
would be able To draw more gold from London.
Specularors did not stop 10 consider the posi-
biliry Of a further advance III the British banks
-are in the event Of a new American inquiry for
the precious metal despite the fact that its
specie holdings have increased $1,000, COO since
i made its recent increase il its discount quota
ton. Call funds declined in the afternoon. but
this movement took place after the bulk Of the
DAYS requirements had been made and there
fore was not significant Of any change in The
actual position Of the market. The greater
part Of the loan business on the stock Exchange
is concluded before the delivery time which IS
2.I5 o'clock but the fact that call rates ran
down 10 a low point Of per cent. compare.
with the high level Of 36 per cent recorded IN
the morning may bring in some outside buying
OF securities to-day Up 70 the close OS business
Secretary onav expressed no intention OF arord-
ing further assistance 70 the money market,
tod
the Washington dispatches that he was watch
ing developments and endeavoring 10 find out
whether fl was Wall Street or the mercantile
community that needed help
That mercantile circles need money and are
calling on TINS centre for large sums IS re-
fected IN The heavy loss by the banks IN the
current week on shipments Of funds 10 the
South and West. The Treasury took suostan-
ia! amount from the banks. and this factor, TO-
gether with the loss 10 the interior and the al
ready depleted condition Of the bank reserves
is more responsible for the high rates Of money
than manipulation. though. OF course, IL Is
generally accepted fact that some institutions
ara guilty of playing an unfair game II their
money market operations. The movement OF
gold since the beginning OF the year shows net
imports Of more than SN0OOpOoD; in addition 10
TINS large increase IN the amount OF money IN
~. country there have been heavy deposits of
government funds with the banks, 10 say nothing
Of big receipts oI new gold from the mines pt
the country. including those Of Alaska. and ihe
greater part of this increase in money has come
first 10 the Now York banks But the Ne"
York institutions finance the business operations
Of the entire country. ard as q consequence
there has been a steady drain on their resources
for months for out-0f-toyyu account. Money (
has gone out iu response 70 legtimate trade de-
rlands and it IS absurd 70 blame local monetary
Conditions entirely 70 stock Exchange specula-
ton and other Wall Street operations. As FL
matter of fact. stock market operations have
been conducted on 4 moderate basis, and in the
las- few months there practically has been no
public interest in the dealings. while recently
the banks have been able To reduce their stock /
market loans 70 material extent
ings y The week the banks doubtless viii show
deficit IN the reserve item IN to-day 5 statement
Il being improbable that the Clearing House in /
strutions have brought about large enough /
Liquidation in the loan account 10 offset the loss
in cash as an influence on the reserve above
legal requirements Bank reserves above the
legal limit nave been wiped out twice this year
and II is likely hat this weeks statement will .
show the same kind Of result This, hcwever. /
does not mean that the banks are going into
bankruptcy or that there is 10 oe aTnoney panic +
IN the country. The stock market al the close
was ar IT'S best Of the day. with the chief aa-
EaHces IN An2alEamated copper. American
Smelling. Atchison, =. Paul Great Northern
ore receipts. New York Central, Northern PaA
ci1c, PENNSYLVANIA, Reading Union Pacific and
.anadian Pacific. The last named gaining
''7s This stock sold at its best price on rec
ORC ne upward movement being accompanied
i't purchases 10y interests who we'll informed F.
'-kdfdifS ia- property and tine prospects 0f fa-
Norabe developments for the stockholders The /
toAlpAhys earnings are enormous from It's traffic
business, while its receipts from land sales are
heaEy- II Is estimated that the land holdings
OF tls canadian Pacific are intrusicallv more
q Or man nose of the Great Northern. ana
+ realization o. the great asset that tlIe -ompauv
taS Il Is a'las 8pubtlcs- is factor ia aji i-3e.-
Ing h} l!s "f fn- stock in iu- l,..aI and London
-'' '-.-. 'I iHe curb further weakness t.a.
-it'-1t .N Hiin--fC Good YuFine was r....rt..tI
~ Portland Mining piti,f. atr,..3r- ,,, -. ... -
~ Eu-s nd.