New-York tribune., 1906-10-24
STOCK MARKET OPERATIONS.

While there a brief period Of strength
IN the early dealings. the course of the market
in the greater part of the day was in the direc-
ton of lower prices. Dulness which developed
when the advance was at its top. induced short
selling, on the well founded theory that the buy
ing power had become exhausted, while the sales
for short account were helped by liquidation by
Western houses of long lines of United States
Steel, Amalgamated Copper and other issues.
Maximum declines from l to 3 per cent in
the leading issues, Analgamated, St Paul,
Reading, Southern Pacific. United States Steel
and Union Pacific of the active list being the
chief sufferers. Wall Street was somewhat up
set over the big Hearst demonstration at Madi-
son Square Garden Monday night: indeed.
the influence of politics was great enough to
Offset as a favorable market factor Secretary
Shaw's decision to increase bank note circula-
ton to the extent of S1SO0OOOO Secretary
Shaw is a believer IN elastic currency, and
he Is making experiments that may be impor-
tant factors in currency reform discussion In
which Congress may indulge this winter In
the last hour a somewhat stronger tendency de-
Velopedr owing TO covering Of shorts, and at the
close the greater number Of issues were above
the lowest prices of the day, though at net
losses as compared with Mondays last quota
tons. Foreign houses were again sellers in the
local market, while on the London exchange
American issues were weak, selling in the Brit
ish capital being due to the unwillingness of
holders TO carry their accounts over the settle
ment in which the contango. or interest rate,
will be high.
Secretary Shaws action in again coming to the
assistance OF the money market doubtless will
create an easier feeling in money market circles
as well as in speculative quarters. but it should
ia faI Tor ar7te tbat IN
national bank note circulation OF S1S.0OO0O0 will
serve to bring about easy rates for loans just at
present Last spring New York imported up
ward Of S50OO0OO0 in gold from Europe while
in the recent movement more than S40OO00O0
in gold brought In. which. together with
the S26O00O00 government deposits of a few
weeks ago with depositary banks. and the S1S,-
100000 just announced practically made gross
increase in the country's money In circulation Of
more than S134,O0O,0OO. Since July 1 the ex-
cess of government receipts over expenditures
has amounted to less than S5,OO0OOO and the
larger part, therefore. of the gold imports and
the increase in banknote circulation has been
at the disposal Of the money MARKET yet bank
reserves above legal requirements in New York
are less than S7OO0O00 while throughout the
country reserve holdings unusually low This
situation is due, of course, to the great activity
of money in the channels OF trade and in spec
ulation, and 1t fs not an indication Of boarding
of funds and does not supply any reason for
pessimism over present conditions Secretary
Shaw was persuaded by New York bankers Of
the necessity for Treasury assistance and II IS
to be hoped that this amount will relieve the
situation until the return flow Of currency from
the interior begins. The situation in London
suggests that British bankers would like to draw
gold from New York. and perhaps they arc
counting upon sales Of foreign held American
securities and payments OF maturing finance
bills TO bring about advance in our sterling
market large enough to make 1t possible for
London to draw the precious metal from this
side of the ocean, but 1t should be borne in mind
that the supply Of cotton bills against cotton ex
ports from the United States is rapidly increas-
ing, while exports of domestic products continue
in large volume. If our export movement in the
next few months is at the rate established in
September. there will be little probability Of
demand sterling advancing above parity.
Foreign discounts were unchanged yesterday
and money rates at this centre were easier for
call money but firm for time accommodation
In sterling there net advance of 20 points
The movement Of transferring loans on stock
market account from London to New York con-
tinues, and it naturally increases loans at this
centre, a reflection Of which doubtless will be
presented in Saturdays Clearing House state
ment. Loans of the New York banks and op
the New York trust companies are very large
having increased since the middle Of September
upward Of S46OO0oo0. while in the same time
there has been an increase in cash of only SIG
6IJ,oOo and net increase In reserve of a little
over 100000 After there has been a read
justment Of present conditions both in this
country and abroad, the chances for successful
ACTIVITY on the bull side Of the stock market will