New-York tribune., 1906-09-16
Closing prices of active bonds dealt in. with
STOCK MARKET OPERATIONS.
changes. follow

On a heavy volume Of business stock market
values exhibited great irregularity. though In
the leading active issues the tendency IN the
best part OF the two hours Of trading was in the
direction OF higher quotations. Reading again
being the leader among the railroad issues. both
in point Of activity and strength. This stock
touched a new high record figure on transactions
which made up more than one-half Of the total
in al securities, the movement being accompan-
led by further rumors regarding the future OF
the property and its dividend chances. as far as
an increased distribution 10 the stockholders of
the common stock IS concerned. The Street
hears that Reading VIII soon become the abso-
lutte owner Of Baltimore & Ohio and OF Central
OF New Jersey and that the Reading dividend
win he placed on a . or 6 per cent basis but
Baltimore & Ohio people say that the chances
more in favor Of that company securing
control OF Reading than Reading becoming the
master OF the Baltimore system. Whichever
ruulor is more likely TO develop into an assured
fact does not bother Wall Street either one being
sufficient 20 encourage activity in the shares Of
the two companies. particularly in the present
condition Of sentiment. Any rumor attracts be-
1 levers nowadays. and it IS not unlikely that
/ buyers would be found for the most unpromising
/ Of the so-called cats and dogs of the Street II
rumor said favorable things Of them. Based on
its intrinsic value Reading is selling many points
above the price 10 which it is entitled, but IN
this respect the stock is not different from its
! high priced neighbors.
Stocks Of the soft coal roads were In good de-
Tnand. and many Of the specialties We're taken bv
d good class of buyers. American Locomotive
/ and Dstillers were features. the latter advary-
/ ing As for the day on "a volume of trading
amounting 10 more than $1,000 shares. While
some shares were being advanced 10 a higher
level there was quiet selling IN a number Of the
prominent issues notably Union Pacific. Great
Northern, Southern Pacific and United States
Steel, and following the publication OF the bank
statement the general list exhibited a reaction
| airy movement, though In the early strong feat
/ ures declines unimportant Estimates
| made Friday of the gain IN cash TO the local
banks ran as high Sl4OOQOOO while the
! showing Of the Clearing House institutions as
compiled by the antiquated average system, pre-
sented gain of only S7.932 100 Loans. how
ever, contracted more than S1J.OOOOOO. and IN
consequence deposits exhibited a considerable
decline. so that the reserve above legal REQUIRE
ments restored from the deficit OF a week
ago. As a result Of all changes reserve now
stands az S3.536 400. compared with deficit OF
S6.577.92J last week, n surplus Of 81 635 300 at
this time year ago. and $50 3I3. $50 IN the cor
responding period in 1904.
The restoration OF the reserve OF course Is an
encouraging sign. but the actual holdings OF the
banks do not warrant the idea. which apparently
is held in many quarters. that bank resources are
now large enough 10 finance an enormous public
speculation I'm securities The banks will let
speculators have accommodation II they are will
ing 10 pay high rates. but il VIII be a dangerous
operation both for the speculators ana the
banks. especially as foreigners ara now showing
great objection n further heavy Withdrawals Of
the yellow metal for shipment II the United
States. There evidently Is little chance Of the
New York bankers securing much more gold In
London. and far as be learned Paris will
make srOng objection to exports 10 the United
States. particularly as Paris bankers may be
compelled 10 assist London in meeting the Egyp-
tian demand which is now developing The
chances are. therefore. that the United States
VIII have To look elsewhere for help, and II is
interesting to record the fact that the largest
banking institution I'm this city already is nego-
tiating for large amount OF gold I'm South
Africa for shipment 10 this country. The fact
that our banks are exerting every effort 10 get
gold In an parts of the world is not a bull factor
on bank conditions here. though II encourages
speculative enthusiasm. as the speculative ele-
ment realizes that the stock market VIII get the
beneht OF any gold that may be imported. Many
powerful institutions In this and other cities are
heavily committed 20 the bun side or the s,ool,
market. and no effort Will be spared TO maintain
strong quotation level Later on. when tbev
have settled their accounts there may be soma
trouble for other people. but such a probability
does not disturb the present ruling Wall street
masters.