New-York tribune., 1906-11-08
STOCK MARKET OPERATIONS.


stock market trading 10 bring about higher
prices for securities. Quotations as rule moved
IN the direction OF lower figures owing 70
pressure from the trading element, selling by
Western houses and liquidation for foreign ac-
count, and in some cases these sales were efec-
tive in establishing values on level a point or
more under the closing IN Mondays trading
Absence Of public support was due more 70
money market conditions than 70 any other fac
tor. and while considerable disappointment was
shown in the Street over the poor showing made
by the market, there was no great surprise in
commission houses because OF the absence Of an
active outside inquiry for stocks Favorable
election results could not increase the supply OF
money al this centre. and just as long as
scarcity Of funds available for speculative pur-
poses prevails encouraging developments affect
ing the intrinsic worth Of securities doubtless
will not exert an important influence on the
course Of market values. Weakness IN the for
eign markets naturally was not bull factor on
the local exchange. and when traders realized
that the Republican victory would not be fol-
lowed by a widespread demand for securities
they became aggressive On the bear side OF the
account and were successful in reducing quota
lions in the active list material extent espe-
cial!y IN the case Of Reading Union Pacific ST.
Paul. AmaIgamated Copper, American Smelling.
Brooklyn Rapid Transit. Interborough-Metro-
poltan and Southern Pacific. IN the last hour
prices rallied moderately throughout the list
with the chief strength in Northern Pacific and
Great Northern, but final figures generally
showed net losses. Call money was as high as
a z per cent, while sterling exchange was firm.
Though domestic exchange az Chica go is some
what more favorable 70 New York than it was
few days ago. the demand for currency from
the South continues active. and according 20
advtces from New Orleans the requirements cf
that centre will be heavy for a number OF weeks
10 come. In view OF this demand and the active
employment Of funds in all channels Of trade to-
gether with the low position Of the bank re-
serves in this city. the prospects for easy rates
for loans are not at all promising indeed the
chances are that from now until the end OF the
year the local money market will present high
rates for accommodation. with the possibility OF
passing periods OF stringency. The fact that
reserves are low naturally serves 10 create dis
cussion OF the pToha biIity OF further assistance
from the federal Treasury. and il is believed
that if the demands Of the situation become
urgent the Secretary OF the Treasury will offer
10 pay in advance part, at least Of the govern
Hent bonds which mature next July. There are
outstanding S116.7555JO per cent bonds which
become due at the time mentioned, and OF these
bonds S34, $50 $50 are held by the Treasury in
trust for national banks against national bank
note circulation and United States deposits SO
lndt the PUBIC holds SS2,iUo,ZtO DOuhrle4S
ho4cers OF these issues would be willing 10 part
with them with interest TO January at a price
which would be equivalent 70 their payment a
par with the April Interest Tsere is no possible
chance Of gold imports owing TO the high rates
for money abroad. and the only relief therefore
10 the money market in this country must cone.
from the government or else from d drastic
liquidation Of loans Heavy liquidation OF loans
would involve heavy selling Of securities and
bankers undoubtedly viii do everything in their
power 10 prevent such development inasnuch
as extensive stock market liquidation at this
tine would have q most unsettlng influence on
tne current speculative and investment situation
There is no good reason why the Secretary OF
the Treasury should not redeem the bonds
which mature in 1907, and Wall Street is quite
confident that Mr. Shaw viii take every precaU-
ton prevent disturbances which present con-
ditions might bring about unless there should be
q large increase in cash holdings OF the asso-
ciated banks
Large and influential Wall Street interests.
who are heavy holders OF securities and who
believe that the countrys great prosperity war
stability in investment values, are not wor-
TyIng over the money market outlook, inasmuch
as they believe that monetary affairs viii be ad-
Justed in manner which will prevent any
trouble al this centre Moreover, they believe
that with the development of more normal con-
ditiOus in money securities will advance 10 a
higher level. and the fact that stocks a 5 a rule
are IN strong hands suggests the improbability
of the development Of panicky conditions the
STOCK Exchange. London yesterday was some
what upset over election results in this country
believing that the falling off in the Republican
Ncle IN certain districts and the relatively small
plurality BY which the greatest state in the
Union was carried by the Republican party in
dlcated growing distrust OF corporate manage
ment IN the United States and foreshadowed po-
Etlcal changes which might upset economic and
financial conditions in America Such A view OF
the situation however is not entertained by in
ielAg@5f thinkers here. and careful analysis OF
election results fails ndorse the idea that
the greater number OF people in this country are
opposed 10 the safe and sound principles which
have established our industries on the present
strong and prosperous basis President Roose-
welt viii continue his campaign against corpora
lions which break the law, and the unimporta
Increase In the number Of Democratic Congress-
men viii IN no Way interfere with The plans for
The correction of corporate abuses and the ex-
tension ~ honest! IL American business deal
ings Democrats who have been elected 10 con
gTess are aOt socialists.