New-York tribune., 1906-06-17
enlisted.
Closing prices of active bonds dealt in, with
NOT cfaOges FOLLOW
STOCK MARKET OPERATIONS.

In the two hours of business in yesterdays
stock market prices moved toward lower level
a moderately heavy volume of business.
Active pressure from an aggressive bear party,
directed chiefly against Reading, st. Paul, Union
Pacific. the Copper shares United States Steel
and the Hill issues, effective in bringing
about declines OF from ! to } per cent the chief
weakness developing after the publication of
the bank statement While figures of the Clear
ing House Institutions We're disappointing. the
falling off in reserve above legal requirements
was light, amounting 10 only SS8675. The in
crease in cash was much smaller than fore
shadowed in Fridays estimates. while in place
of expected contraction in the loan account
this item showed increase of 1913. .100. In
view Of the liquidation in the stock market
in the week, it thought that loans would
show a material reduction, but whatever Iiqui-
dation of speculative loans took place evidently
was offset by increase in borrowing for syn
dicate and foreign exchange account AS a
result Of all changes, the reserve now stands
at SE,073,315. which compares with 81 2O9, 800
at this time last year and $3S. .S69 S75 in the
corresponding period in 1904. On the decline in
stocks, prominent interests bought on a scale
down, but there was effort 10 support the
market, except perhaps, in the OF Balti-
more & Ohio, which again showed resistance To
the general declining tendency buying of the is
sue being accompanied by further talk of an
increase in the dividend on the security Ad-
verse reports from certain sections of the crop
territory the weakness in Russian bonds and
the total lack Of interest on the part of the
public We're among the factors which increased
bear enthusiasm and attracted liquidation. A
dispatch from Paris reporting that the Penn
sylvania loan had been successfully financed.
was without effect on values. The close, as a
rule was at the lowest of the dav
In view of the relatively light reserve holdings
OF the Associated Banks firmer tendency in
the money market at the close OF the week was
not surprising. 1t is not unlikely that in the
balance or the month quotations for loans will
rule somewhat higher than recently recorded.
owing TO the preparations which must be made
for the heavy July interest and dividend dis
bursements, TO the necessity Of the trust COM
pan1es TO increase their cash on hand under the
trust company reserve law which was passed
at the last Legislature and to the withdrawal
early in July of $10000000 government de-.
posits When the law compelling trust COM
pany reserves became effective the trust COM
panles We're compelled to supply at once two
nfths of the proportion Of the reserve to be held
IN cash. while on July l a further increase in
the amount Of cash on hand must be made the
balance Of the fund to be created before January
l. ISo' In addition TO these factors the active
demand for accommodation in all parts OF the
country in connection with industrial expan-
sion will tend TO maintain rates for accommo-
dation at a firm level not only in the current
month, but throughout the balance OF the year
This view Sc IT. situation is indorsed by the
leading bankers in the Street, who believe
that the various conditions in the present
situation WORKING against period of ease
in the loan market. While foreign exchange is
not many points Under the gold exporting level
there is little chance of shipments of the precious
metal especially if firm rates for money develop
at this centre. Although this country is heavily
Indebted TO Europe credit is strong enough
to induce foreigners TO renew their loans at
raturities, and to make additional advances
Tor American account whenever the exigencies
Of the situation demand assistance from Euro
pean bankers. OF course, if there should be
any upheaval in the foreign markets as a result
Of the present situation IN Russia. the willing
ness Of foreigners to lend money to this coun-
| try would not be SO great, particularly I'm the
matter OF financing securities issues
| An enormous amount OF money is wanted by
'he railroads IN connection with the carrying
out OF uleiF extension and improvement plans
| current estimates placing the sum which win
| be required this year at more than $3.50 600 ono
| ths large total not including the Peunsylva 8
| proposed SJO.Ot00e0 loan in Paris or the ex
| pected Wabash financing, which may involve
| more than SlOoo00,000. The demands Of this
| sort coming On an already heavily burdened
| money market, together with the other known
factors affecting both cali and time funds ma k,
| Il easy To see why the expectation Of higher
rates for loans is held by the best informed men
IN wall Street. And it is also easy to see why
an active bull boom in securities is considered
out or the question at the present time Ac-
corolng 10 the reports received in the week from
ihe trade agencies. general business conditions
throughout the country are extremely sound
and prosperous and while In some lines there
has been seasonable setback from the recen;
| heavy volume Of trade. tbere has heer M 10