New-York tribune., 1906-10-21
STOCK MARKET OPERATIONS.

In the greater part of the two hours of trading
stocks were weak throughout the list on heavy
volume of business which represented lquida-
ton and bear pressure. Further declines in the
London market and active selling on this ex-
change for foreign account. together with the
expectation of unfavorable bank statement,
were factors which naturally disturbed specu-
lative sentiment and led to large offerings.
which. however, were absorbed by substantial
market interests. The larger interests see in
the present decline reason for uneasiness; in
deed, they believe that the current Iiquidating
movement will serve to increase the markets
chances Of higher prices later on in the season.
Perhaps the best support of the day was in
United States Steel common, which relative
ly firm in spite of large sales for London ac-
count. In Amalgamated Copper there also
some evidence of support times, but in the
general list the downward movement per
mitted to run without any attempt the part
Of the chief interests to bring about a rally
their operations being confined merely 10 the
ceptance of stocks offered for sale.
Losses of from l to points were recorded In
the active list. while in some cases declines were
heavier notably in Canadian Pacific. Great
Northern and Reading. In American Smelling
Baltimore & Ohio. st. Paul. Colorado Fuel, Anal
gamated Copper, Anaconda, Northern Pacific
and Union Pacific net losses were more than 8
per cent. There no evidence of rallying
power at any time, and following the publica-
ton of the bank statement a fresh outbreak of
liquidation occurred, embracing about every
stock on the list. A large amount of stock was
sold by operators who have been carrying their
holdings in the London market many weak
commission house accounts came on the market
and pear traders were aggressive in all sections
or the list particularly in the highly speculative
issues. There topic of conversation IN
the Street outside Of the advance in the Bank Of
England's discount rate, and the probability of
still further increase in the event of continued
Withdrawals of gold for outside account Egypt
took another $5.0OO,OO0 from the bank yester-
day. Bank statement figures showed heavy
falling off in reserve. the decline in this item
being nearly twice as heavy as the loss in cash,
this being due to a large increase in loans. Cash
decreased So 934, 300, while reserve above legal
requirements declined $6,S23 $50 to Sc 200 $50 as
compared with S12.5S3.15O at this time year
ago and S17.S53, ,925 in 1904 Perhaps the de-
cline in stocks yesterday and Friday will take
the place Of the usual ante-election break, which
has been predicted to take place a week or so be-
fore November G.
The money market week has been one of sur
prises. but there have been no DEVELOPMENTS to
discourage the holders of American investment
issues While the advance in the Bank of Eng
land may be considered warning to SPECTATORS
that London will no longer finance the needs of
that our recent heavy obligations abroad have
been materially reduced, If not liquidated entire
ly. the latter idea being held in many circles
through our large excess of exports over i'm
ports. and that London practically has been
compelled to send gold TO this side of the ocean
The Bank Of England, the largest concern of the
Kind In the world, announces that it must protect
itself against American demands, and the very
TACT that the United States has been able TO
force that great institution to advance it's rate
OF discount is favorable argument on Ameri-
can industries and American securities II
SHOWS the remarkable strength of conditions in
the United States and it reflects the control
which New York has had OF the international
exchange market in the last few months Money
rates doubtless will rule firm level here but
conditions are such throughout the country that
hlgh rates for funds not Interfering with
business expansion and while they may serve
to check great activity in securities for a time
tnere Is little reason TO suppose that the nosfion
OF money Will bring about great liouida+ior in
the securities markets. Stocks are in the hands
OF strong people, where they are quite lik.lv 70
remain Tor long time to come Probably mend
ing the outcome CT the election, the morket wu,
remain in the hands of traders but with tavo-
able election results the prospects for bett.-
quotations viii be materially improved