New-York tribune., 1906-07-06
STOCK MARKET OPERATIONS.

Until the beginning of the last hour of busi-
ness the stock market was strong on a moderate
~ active volume of trading, advances as COM
pared with the closing figures Tuesday amount
ing TO per cent and more in the leading issues
Improvement. however, represented covering of
shorts rather than the development of an active
outside demand for securities, and in the alb
sence of public buying, following the completion
Of the covering movement, the general list de-
clined under the influence Of professional selling
which was encouraged IN part by the remarks of
the vice-presdent Of the National City Bank
before the State Bankers Association. intinat-
ing breakers ahead unless change soon is made
in the country's currency system. Mr.. Vanderlip
like all intelligent bankers. believes that, de-
spite general prosperity, our currency system is
wholly unsuited for present conditions and that
the time has come for an earnest campaign on
the part OF the New York financial interests in
the direction of monetary reform The fact that
Mr.. yanaerlip represents bank with which are
identified some of the leading capitalists in the
country makes his suggestions especially signif-
cant of the sentiment favoring change in the
currency laws In the forenoon dealings marked
strength was shown by the Copper shares, Brook
lyn Rapid Transit, ST. Paul, Reading. Union Pa
cific and the Hill stocks while in the last hour
decline these issues. as we'll most other Sc
curities, lost most of their improvement, the
In which the decline was accompanied by re-
ports that the city authorities were contemplat-
ing some move against the company. If this
road should be compelled TO put its wires under
ground, as it ought to do it would be some time
before a dividend could be declared on its stock.
Last prices were slightly above the lowest.
Call money rates were easier, but there was
no change in time funds, which remained at the
stiff level quoted earlier in the week. Appar-
emily there is little probability OF actually
easy money market this year. except, perhaps,
In the case Of call rates, which doubtless will
rule at a relatively low level until the demands
from the interior in connection with the flnanc-
ing of the crops becomes urgent; but it is un-
likely that there will be disturbance in the mar
ket, especially as bankers already are making
preparations for the fall requirements, while
wall Street in general is placing itself in posi-
ton TO stand high money quotations without
running into panic. Recent liquidation in the
stock market has strengthened the position of
the money market. and in banking houses
the hope is expressed that there will be further
operations OF a similar character, as it is con-
tended that additional liquidation must take
place before the loan account of the associated
banks can be considered in a healthful condi-
ton. Foreign exchange rates were strong
yesterday, sterling advancing to point above
that at which gold may be imported at profit,
the movement being due in part to a transac-
ton involving the engagement Of S1,500,000 OF
the metal in Australia for shipment to this coun-
try There IS no urgent necessity Of gold i'm
ports at this time and bankers not making
especial efforts to secure the metal abroad.
though they believe that in the fall IL will be
necessary to bring in a large amount in order to
offset the drain on the local banks from the in
terror institutions which at that time will with
draw their balances at this centre in connection
with the financing OF the crops. An easier feel
ing abroad over the Russian situation and the
money market is reflected in the failure OF the
Bank OF England 20 advance its discount rate.
despite an unfavorable weekly return by that
institution.
Railroad earnings coming 20 hand show
some remarkable results over corresponding
periods year ago, when returns were especial
ly gratifying. Almost without exception gains
are shown over the receipts Of 1905 and the
chances are that in the greater number of
| roads gross ana net income FOR the fiscal year
ended June 80 viii be far in excess OF any ever
| before recorded in the history OF American
! transportation companies. Even in cases where
there have been factors operating against the
roads income has been most encouraging while
IN the case OF roads which have had everything
! in their favor the increases have been large
enough to suggest 20 some pessmistic minds
the idea that conditions are abnormal and that
reaction soon must develop. The trouble with
this theory Is that the factors responsible for
the heavy traffic receipts show all the earmarAs
OF peruanency. Fortunately there is nothing
in the general situation affecting the actual
worth OF American investments that warrants
the expectation Of depression in the business
affairs OF the United States ia the current year.
while GIL indications point toward another