New-York tribune., 1906-06-16
STOCK MARKET OPERATIONS.

Weakness in Russian bonds and lower general
markets abroad. crop damage reports. uncer-
tainty over the success Of the Pennsylvania loan
in Paris firrner money rates and the antagonis-
tic spirit exhibited by certain element in Con-
gress toward the President over the meat in
spection amendment of the Agricultural bill
were factors which contributed to decided weak
ness in Yesterdays stock market. In the open
ing dealings heavy liquidation developed in va
rfous parts of the list with the chief pressure
directed against Reading. the Copper shares
and United States Steel common and though
there were occasional nervous rallies at differ
ent times in the Gay, due to covering of shorts,
the general list of quotations at the close was
well under the final figures Of the preceding day
There attempt the part of the sub
stantial market interests to encourage activity
the bull side. while the presence in the mar
ket OF number of prominent SPECTATORS who
are openly working for lower quotations
served to intensity the bearsh sentiment
ated by the passing unfavorable developments
outside the Stock Exchange. Strength in the
cereal markets following further reports of ad-
verse weather conditions in certain sections of
the crop territory naturally tended to increase
enthusiasm among the bears in stocks while
the advance in call money and the firmer tone in
time rates also acted as a distinct factor in dis
couraging what left of the bull element
With the actual adverse developments there
were number of rumors including one which
subsequently WAS denied. that the head of the
leading banking house in the Street was serious
ly i'll In the last hour trading was dull and
the amount Of stock pressing for sale was ex-
tremely small, while the buying demand was
still more limited Total transactions were con-
siderably under the dealings on the preceding
day. Pool liquidation in Reading and other
manipulated issues was heavy
According
this week the local banks have gained more
than SlOOOO0 in cash holdings due entirely to
transfers Of funds from San Francisco On the
general movement with the interior there was no
lhdlcatlon OF a lack of demand for money at
out or town points, as the local institutions
| shlpped more currency than they received the
excess shipments amounting to upward of $500
| oOO. In View OF the fact that money rates at
| interior cities are higher than they are in New
| YORK this movement is not surprising and unless
| there should be a material advance in rates here
| New York need not expect much assistance
from other places tnasmuch as with funds at
| their current figures in the West and South
'here is no inducement to send currency to this
| centre Rates however, in the local money
| market have shown a firmer tendency in the
| last few days, and if to-day's bank return
| should exhibit a substantial falling off in re-
serve loan quotations next week doubtless will
The money market is in an interesting position.
| There IS nothing weak in underlying conditions,
| but there are various cross currents which in
duce uncertainty over the probable course of
| rates in the balance of the summer and which
| tend to discourage activity in stock market oper-
| ations for higher prices. demand for funds
| from New Orleans has developed, and inside
| of sixty days there will be an active INQUIRY
| for accommodation In connection with the move
| ment Of the crops. and meanwhile the railroads
VIII need more money and counting on as
sistance from sources which already are carry
ing enormous loans on their books Banks have
good collateral back of their loans hut they
may find Il necessary before long to reduce their
accounts. and in that event the speculators will
suffer
Railroads want more money, but the present
time is not favorable for further borrowing.
Pennsylvania is trying to secure $4,000 900 in
Paris. and perhaps the dsquieting conditions in
Russia are In a measure responsible for absence
OF orclal announcement that the loan has been
successful France is such large holder of
husslas obligations that Paris bankers doubtless
aTe not inclined TO enter upon heavy corpora te
financing at time when Russian securities are
dropping TO new low records. A report was re-
, celVeo yesterday from London that the Pennsyl-
wanna loan would be taken and that nothing now
remained to settle in the negotiations except the
; taxation conditions. If the loan is successful the
; effect on local sentiment ought TO be of con-
siderable Importance to the stock market For.
eign exchange rates strong yesterday. Ii
connection with the discussion relating tn tb4
sterling market it is well to the that II