New-York tribune., 1906-12-25
-UalIsted. fEx dividena.
Closing prices of active bonds dealt IN, with
net changes, follow:
STOCK MARKET OPERATIONS.

Stock market values opened under the fnfu-
ence of a heavy selling pressure which in the
first hour Of business was responsible for de-
clines Of from to 3 per cent in the more active
issues. The weakness was helped by an unfa-
vorable movement Of prices on the London Ex-
shange and by the stiff contango rate charged
in the British market on American securities for
the new account, but sales were not accompanied
by pannicky liquidation or by the development
Of uneasfness in speculative circles over the
future of quotations. There was a number OF
weak accounts Lquidated in Reading, the Hill
shares st. Paul and Union Pacific, while
throughout the list there was fair sized selling
movement for traders whose margins had be-
come weakened by Saturdays decline. There is
nothing surprising in the downward course Of
Reading. or, for that matter in Great Northern,
Union Pacific, Northern Pacific and St Paul.
and the movement should not be considered an
indication of any fundamental weakness in the
situation affecting the intrinsic value Of securi-
ties. Reading is not selling for less than IL is
worth; indeed, based on its dividend return there
is reason why the issue should not sell at
lower level. while the same thing may be said
OF the Great Northern ore receipts. After the
early OF liquidation prices steadied in some
cases 10 the extent Of point or more and
practically remained unchanged in the balance
OF the day. the advance from the low point being
helped by easier tendency in call money,
which led to active covering by the room ele-
ment. The close nevertheless showed many soft
spots. with the traders generally bsarish. The
Southern Pacific labor trouble caused some SELL
ing Of Southern Pacific shares.
Money market rates doubtless will be ad-
versely affected throughout the week by the
preparation which must be made for the large
January interest and dividend requirements, es-
x.-JII
be paid TO the holders of American securities in
the first month Of the year than ever before re-
corded in the history of the country. and these
payments ought TO satisfy every one who is in
terested In the material welfare of the United
States that we have had a most prosperous year
and that our Industries are resting upon solid
foundation Whether or not this foundation will
be undermined by speculation. high prices over
stimulation in all lines and other factors that
recently have developed remains TO be seen with
the course OF affairs in the year, but there
certainly at the present time is reason for
pessimism over the future, despite the predic-
tions which are being made by some mournful
souls that the brink of financial and
industrial chaos. There is no doubt tendency
10 over-speculate in most lines of trade in all
parts OF the country. and such a situation may
lead TO a setback which will correct the evils
and pave the way for resumption OF Industrial
activity on even broader lines. One thing that
ought TO be corrected at once is the exorbitant
and usurious rates for money on time loans now
demanded at this centre. There is TO be sure
every reason for firm time money quotations
and stiff rates for call funds. but there is no
warrant for the prevailing price Of stated period
loans-a price which is imposition on the bor-
rover. unless he happens 30 be p speculator who
relends the money on call at higher rates and
which is becoming extremely onerous. The banks
are making handsome profits and they know
that current high rates for money DO not repre-
sent an actual scarcity Of the lending medium.