Omaha daily bee., 1906-05-16
NEW YORK STOCKSAND BONDS
Market Gives Signs Of Falling Into Dull
and Uncertain State.
COMING DEMAND FOR FUNDS A FEATURE
Prospect of Tight Money Market
for Several Months Tends
to Discourage specuIa-
ten.

NEW YORK. May l5-Today's stock mar
ket gave signs Of falling into the dull and
uncertain state which is the rule after the
hrst recovery from such a sharp break
as that which followed the San francisco
property losses. The reason is that the
first recovery results from the decline hav-
ing been over extended rather than from
any radical change in the conditions that
caused the decline. A variety Of expla ma
lions was found for the heavy tone de-
veloped in the market This variety ar
gued some confusion OF mind among the
interpreters and did not warrant the con-
clusion that all of the offered explanations
played part I'm the movement OF the mar
ket. The fact Is that much has been &C
eompLished toward covering up the con-
which were put out during the period Of
acute depression of sentiment. The exist
ence OF the short interest and its potential
requirements was made a useful medium
for the aggressive professional operation
for advancing prices.
With these two forces approaching
balance again the market is free to re-
spond to the conviction that the conditions
which caused the break in prices were not
strtcted capital resources to meet the heavy
requirements pressing TO secure a supply
was brought into prominence today by the
announcement Of the Pennsylvania note
issue for SOC, 900, coo. The fact in Itself that
resort to this form Of financing was con-
sidered by the most powerful railroad cor
poration in the country was an adverse
one on sentiment. It amounts TO the ad-
mission that market conditions are not
sues of more permanent form and which
may be expected to follow TO provide re-
issues. The inference is discouraging to
hopes of an improved demand for other
securities. The terms OF the issue also
were unfavorably regarded. While the in
terest rate on the notes was called ~ per
cent the understanding Of the price at
which they were sold pointed to a yield
up to per cent, while the supposition of
commission in addition to the bankers
bringing out the issue opened the way to
an assumption that the company was pay
Ing a still higher rate for the use OF the
money.
1t was feared that other intended capital
issues might be impeded by the same un-
talk Of another possible era Of railroad
note issues impending, as the volume of
large. The money market gave no renec-
ton of scarcity of funds and rates for time
loans continued to be shaded under the in
fuence of offerings FROM out-of-towu
sources. This did not preclude the con-
lecture that efforts to replenish the money
market might be designed to further the
ports of large railroad extensions in the
Transcontinental field came in for discus
sion In the same connection. The market
showed some relief on the announcement
of the prompt placing of the Pennsylvania
note issue and the intention to keep the
proceeds on deposit with the banks. The
falling off in the activity In the market
was ascribed in part to Discrimination
to enter upon stock market commitments
until after the adjournment of congress.
Something was made also OF the Standard
Oil dividend declaration, which was at the
same rate as for the corresponding period
of last year, but less than for the pre-
ceding quarter Of this year. Bearish traders
attempted to couple this with yesterday s
reduction in the dividend Of a small sub
sidiary company of the Amalgamated Cop
per company to form an inference OF a
sentiment against a rise in the market on
the part of the powerful group interested
in these companies. The market had the
advantage of a considerable rise before the
decline set in and of a late rally again, SO
that the net changes are small as a rule
The closing tone was firm.
Bonds were irregular. Total sales, par
value, $2,275, 00O. United States 80 declined
"A per cent on call
Quotations on stocks and bonds were as
follows: