New-York tribune., 1906-12-01
STOCK MARKET OPERATIONS.

Transactions IN yesterdays stock market were
light in volume movement of values which
showed great irregularty, with unimportant
changes at the close. In the early dealings a
moderate degree of strength was presented in
the leading issues while in the midday trading
the greater number of shares declined under the
influence of selling pressure from the board
room element, but in tho last hour slight i'm
provement was reported from the low figures,
owing TO covering OF shorts. In view of the
high rate for call money. the failure of prices
to move toward a materially lower level
considered extremely encouraging by the advo-
Gates Of higher quotations. as it apparently in
dicated the absence Of weak holdings in the
market and unwillingness on the part Of sub
stantial holders to part with their possessions
If the market had been filed with weak mar
ginal accounts. the call money rate of 27 per
cent undoubtedly would have been followed by
urgent LIQUIDATION but the upward movement in
loan quotations not accompanied by the
slightest suggestion of uneasness on the part
of the present owners of securities nor did it
bring forth any extensive selling on the part of
commission house customers. The chief effect
Of the high rates for loans reflected in
contraction in dealings Trading conducted
in lighter volume than recorded in many days
and in the afternoon transactions even the
usually active shares practically without
any Se!nDIance Or life. In Amalganated Cop
per- American Smelters, ST Paul. Reading,
Union Pacific and Northern Pacific trading was
moderately active in the first two hours Of bust
ness, but price changes in these securities were
unimportant, while at the close their quotations
showed very little difference from the final
figures in Wednesdays market. The high rate
for call money was y per cent and in time
funds as high as ~ per cent asked for
ninety days accommodation
The loss in bank cash holdings this week has
not been due to a check in the movement in
rency from the Middle West to this centre. but
to g. large government excess of receipts over
expenditures and TO a flow of money TO San
Francisco. Money doubtless will go to the
South and Far West in the rest of the year,
while receipts from the Middle West ought TO be
fairly large in volume. though the great activity
OF trade may serve TO keep at Western points
part Of the funds which recently were sent from
New York to finance the harvests. The Bank
of England presented a strong showing IN its
weekly return yesterday, but made no change in
its minimum rate of discount the refusal of the
governors 10 reduce the rate doubtless being
based on the idea that cheaper quotations for
money In London Immediately would be fol-
lowed by an American demand for gold. New
York doubtless would like to secure further
amounts Of the precious metal in order to
strengthen its bank holdings, but It looks
as If our local institutions would be compelled
TO get along as best they may until their re-
serves are increased through receipts of money
from out Of town points or through action by
Congress permitting the government to deposit
with the banks its daily receipts in excess Of
expenditures.
Easy rates for money out Of the question
at present; indeed. there is not the least chance
of low quotations for loans in the balance of the
year. while II is not unlikely that the price Of
money will rule at firm figure in the course Of
the next six months According to the loan
movement of money in the current week, the
local banks have lost 81 $4,000 in cash hold
ings, and unless therefore, there has been
large contraction in loans, to-day's bank state
ment will not make a favorable showing. Last
weeks return presented a reserve above the
legal requirements Of more than S4oO0,OOO, but a
balance Of this size naturally is not large enough
10 warrant a decline in money rates, nor is it
large enough to encourage active expansion in
stock market dealings. Spectators in Wall
Street confidently believe that after the turn Of
the year rates for funds will decline to level
which will attract an active commission house
demand for securities, and they are counting
upon the large January interest and dividend
disbursements to carry prices for securities to
an attractive selling level.