New-York tribune., 1906-08-19
STOCK MARKET OPERATIONS.

In the two hours of trading stocks were heav-
lily dealt in at advancing prices Reactions were
brought about at times through realizing sales.
but the buying power showed evidence Of
falling away. and despite unfavorable bank
statement quotations at the close were at or
near the best figures Of the day. Intense ex-
citement again marked the course of trading in
Union Pacific Southern Pacific, Pennsylvania
Reading and number of other active issues.
Reading in the last hour taking the lea'd' even
over the Hartman shares. on tremendous
volume of business Buying orders throughout
the list for public account were heavier than re-
corded on any Saturday in the current year ana
the recent idea that the public could not be
stirred to speculative action gave way 10 the
belief that a genuine outside buying demand
rat4 at last developed. and that in the course
of the coming week some particularly brilliant
fireworks might be seen in the securities mar
ket At such time as this there is no pront IN
preaching prudence and caution II people WISH
10 buy stocks at high prices why should any one
a4ternpt TO deter them. particularly in the pres
ent case when there are many unusually
favorable conditions affecting actual ValuesE
To be sure high money will soon develop, but
what Of that? Did not the market advance last
year with call funds at 125 per cent! were
not the pessimists and croakers put TO shame
the recent decline to hold for phenomenal prices
this fall? So the argument goes, and there are
good reasons for the belief that the end is not
ver The tremendous power Of the richest ag-
gregation of capital is underneath the current
speculation and it is not likely that the present
opportunity to advance quotations 10 hisher
level will be allowed to slip by.
Rank statement figures showed further loss
IN reserve holdings, bringing the reserve above
legal requirements TO S7,101.5OO. which compares
with 50 355 675 at this time year ago and $780,
6l3,O75 in 1904 Loans decreased So'l4o'Soo
The necessity Of reducing loans to material
extent in order TO strengthen the reserve may
become apparent in the course of few weeks
! but il Is likely in the present week operations
in securities will be heavy enough to bring about
an expansion in the loan item. The course of the
London market for American stocks and the
operations of foreign houses in the local market
in the next few days will be watched with con-
siderable interest, especially as II is understood
| there is a large short interest abroad in Union
and Southern Pacific The London Exchange
was closed yesterday, but on the curb at the
British capital there were heavy dealings in
American rails. Total sales in this market were
| heavier than ever before recorded on a half
| holiday business amounting to 1886, 900 shares
There has been an advance in the stock mar
! ket In the last thirty days Of from TO Is points
in the general list. with heavier appreciation in
a number Of issues notably the Hartman
shares, and in well informed quarters Il is be-
Iieved that the upward movement will be car
ried considerably further, especially among the
! low priced issues which far have failed to
share TO any great extent in the Improvement
Equities in the cheap stocks have grown rapidly
/ Of late Real value has been injected through
the gain that has taken place in earnings and
| the more promising outlook for dividends and IL
I therefore is natural TO believe that with the
maintenance of the present bull speculation the
so-called low grade and medium priced securi-
/ ties will move to better level. Steel common
which is back on the dividend list, is being
actively bought by the first class houses. while
| the same thing may be said of Chicago Great
| Western, Colorado 8, Southern Missouri. Kansas
& Texas, Chesapeake s. Ohio and the Wabash
shares It is expected that the influence OF the
| Hartman dividends and the expectation OF other
dividend announcements, perhaps an increase in
| Pennsylvania rate, will be important factors in
| the stock market for long time TO come, help
! ing the general list toward a higher quotation
range. If Southern Pacific is 10 be permanent
per cent stock it's place is in the neishbor-
hood OF par, while IL Union Pacific can maintain
10 per cent rate the stock ought 20 advance
20 200. There Is, however much unwiIIineness
in Wall Street TO believe that Union Pacific al
ways will be 10 per cent issue. Union Pacific
is a great and prosperous property running
through country teeming with industrial activ-
ity. but Of course in years OF business depres-
sion II viii suffer tremendous reduction In traffic
as compared with the present heavy volume Of
business.