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

STOCK MARKET OPERATIONS.
Transactions in the two hours OF business in
yesterdays stock market were light in volume
on a movement OF values which showed net
losses in the greater number of issues at the
close Liquidation continued in orderly man
ner. while pressure was exerted by the bear
element in the early dealings on the theory
that the bank statement would make poor
showing and that there would be further sales
for the long account The figures Of the Clear
ing House institutions were about as bad as
expected showing falling of In cash holdings
Of SIS 800 and decline I'M the reserve above
legal requirements of 81, ,569. 900. which left a
deficit Of ST. .514.125 compared with a surplus OF
81 420 800 at this time year ago and $685.
$50 in 1904 In the week the banks were able
to reduce their loans to the extent Of S7,2e21OO.
and this reduction. with the decline IN cash, ao-
counted for the falling of in deposits OF more
than s17oO0OO0 Loans OF the associated banks
stand at S1.o45 4es. 200. against s1.O44 2s7. 800
at this time in 1905, while cash holdings amount
to SPAS, TABOO. compared with S264.6oO,eOO In
the corresponding week a year ago. 1t is quite
evident that cash holdings ought to be increased.
but at the moment there is no visible source of
Immediate relief except from the federal Treas
urv. The seriousness of the money market po-
s,tion is apparent, and It is not unlikely that
the banks will be compelled TO bring about a
dra site contraction IN their loans Among the
active issues Reading the most prominent.
while elsewhere In the list the only important
dealings were recorded IN Northern Pacific,
Pennsylvania. Amalgamated Copper, Brooklyn
Rapid Transit and Union Pacific. In these
shares net declines were shown at the Close
and In the majority of stocks final quotations
were under the last figures in Fridays market
The position OF local bank reserves does not
encourage the expectation of easy rates for
loans in the immediate future; indeed. the
chances are that will have firm money
market throughout the rest OF the year. With
a deficit in the reserve Of S1.514,0O0, It readily
may be seen that rates for funds must rule at
high figures unless the banks are able to in
crease their cash holdings through the return
movement Of money from the interior or through
the placing in circulation of money now tied up
IN the federal Treasury Wall Street believes
that Secretary Shaw is prepared to lend a help
ing kan1 TO the money market. as he has done
in the past and the fact that the Treasury has
a large working balance outside of its deposits
in national banks encourages the expectation
that further amounts OF government money will
soon become available for use in trade and specu
lation Secretary Shaw would be warrant
ed In making further deposits with the banks
or else he could pay in advance part
of the government per cent bonds which
mature next July. The situation. while
serious, presents no feature which ought to
ia .N4f a riaaVl
people especially as the amount Of money in
the country shows a tremendous increase over
the sum held at this time year ago, while
through new gold production the supply OF the
circulating medium viii continue TO increase.
And IL IS believed that at the next session Of
Congress currency reform measures which will
prevent the constant recurrence OF periods of
monetary stringency will be passed.
There is plenty OF money in the country. but
II Is poorly distributed. and through the lack of
elasticity In our currency system we have ex-
orbttant rates for funds which impose a tre-
mendous burden upon the mercantile borrowers.
whose success in business depends upon credit
facilities. II Is not at all unlikely that IN the
current week announcement will be made IN
Washington OF Treasury relief measures but the
mere fact that the national government Is COM
PEELED to render aid to the money market IN New
York reflects the inefficient system which now
try It is fortunate that the United States has
a Secretary OF the Treasury who appreciates the
monetary requirements Of the countrys bust
ness and who is willing to place precedent aside
and put IN circulation federal funds which other
wise would lie idle in the Treasury vaIuts do
ing no service to the government or to the peo-
ple According TO dispatches from Washington
Secretary Shaw has announced that the Treas
ury holds S25.OO0OOO which can be used as a
last resort but that he will not place that sum
In the banks until action on his part becomes
absolutely necessary. This indicates that the
Secretary is willing 10 disburse government
money and present high rates will seriously
interfere with business operations in this coun-
try 1t may be accepted a fact that govern
ment funds soon will come into the channels OF
trade While there is no indication OF disturb
ancs IN business circles at present It readily
may be seen that in the event OF continued
stringency in money there will be trouble in In
dustrial quarters and until loan rates become
easier no great expansion In stock market quo
tations may be expected