New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-16
STOCK MARKET OPERATIONS.


On a moderately active volume of business
stock market values moved in a most irregular
manner throughout the five hours OF trading,
with strength in the entire list at the close An
afternoon advance followed a period Of weakness
in the course of which many of the standard
shares suffered maximum losses OF per cent.
and more, this latter movement coming after
brief session of strength in the initial dealings.
The ease with which prices recovered from the
midday depression convinced many minds that
the larger interests are in no mood to permit
extensive losses at this time, while It also sug-
gested the existence Of a large short interest
which serves to exert a steadying influence
upon the least appearance of heavy selling.
Stocks are not in weak hands. The more i'm
portant Wall Street operators may not at the
present time feel disposed to encourage activity
on the bull SIDE but there is every reason to be-
ieve that they are confident that later on in the
season successful upward movement will de-
velop. The fact that the Standard OIL Company
declared a smaller dividend than al it's last div
idend period used by room traders as an ex-
cuse for selling, so also was the PENNSYLVANIA
note issue put forth an argument for lower
prices. The dividend declared by the oil com
pany was the same as at this time year ago.
and the fact that it was less than in the first
quarter of the year should not be taken as a
criterion Of the company's future dividend ac-
ton. The dividends of this company are not a
fixed quantity, but the total payments for the
year foot up a handsome amount. AS to the
Pennsylvania note issue, it is interesting TO
learn that the entire amount has been sold to
bankers at terms which are profitable to the
buyers, but rather stiff for the company
Pennsylvania, however is creating such enor-
nous obligations that it is not surprising it has
to pay good sized bankers commissions in its
borrowings
AS the immediate urgent demand for money
for San Francisco account has been satisfied
local bankers looking forward to an increase
in the cash holdings of the New York banks
through return movement of currency from
the crop centres, and perhaps through a return
of funds from the Pacific Coast city In the last
week California banks have sent to New York
$1,OO00O0. which leaves the net loss to the last
named banks the Frisco movement upward
of $35,OO0,0OO. This loss has been more than
covered by receipts of gold from abroad and
as consequence the Clearing House institutions
are now in sound position. although the pres
ent condition of the market Goes not suggest ex-
tremely low rates for loans nor the develop
ment of superabundance of money in the i'm
mediate future. The strength OF the business
situation demands the of a large amount of
capital while the renewal of the note issuing
tendency on the part Of the railroads. as re-
nected in the announcement yesterday that the
Pennsylvania company was in the market for
S500O0.O0O on short time notes also is a factor
which may have important bearing on the
money market in the operations of the year
The very fact, however, that prominent bankers
are willing to finance undertakings of the last
named character indicates confidence on the part
of the financial community in the situation as
affecting money and business. and while the
operations in connection with the expansion of
railroad and general corporation activities may
prevent for a time a booTHtng stock market they
viii not weaken the position OF the general in
vestment situation.
Activity in the current stock market is con-
fined In great part to the operations Of the So
called professional element. but in the bond de-
partment and in certain low priced securities
and securities In which there is a fair interest
return moderately heavy demand is renorted
current year the range of quotations will move
70 level well above the high record which was
made in January. Since May there has hooD
an advance in the chief railway stocks averar
ing more than per cent. while in the same time
the leading industrial issues have endowed an
average net advance of upward OF per oont
The recovery from the low figures establ,.boa
on the decline incident 10 the San Francisco Az
aster has been rapid and the reactionar,, -,
dency which is now feature OF the r,ar,,os =,
therefore not at all surprising Il is NJ. -.
likely that this movement will be carried e,,r.L,s
unless there should develop large DuhI,c o0oo
ulatiVe demand. OF which al the moment 49,. :,
little indication. People who have mona,, ga
: are nuyIng appear TO be exhibiting a great ats.