New-York tribune., 1906-12-15
STOCK MARKET OPERATIONS.

After brief period of weakness IN the carry
dealings the entire stock market advanced under
the influence of covering of shorts and buying
by substantial interests. operations of the lat
ter being especially pronounced in st Paul.
Canadian Pacific. Amalgamated Copper, Brook
lyn Rapid Transit, Union Pacific and Reading.
Both St Paul and Canadian Pacific enjoyed
maximum gains of more than points, while
throughout the Rst gains of from l to B per
cent were not uncommon. the movement nat
uralIy creating bull sentiment in many quarters
which recently suffered from depression as re-
suit of the high rates for money. Money was
not materially changed from the level OF the
preceding day but the aggressive operations on
the part of certain interests compelled ordinary
traders to cover their contracts and TO accept
the idea that either money was about TO sink TO
a cheap level or else that some developments ar
fectng stocks We're about to be announced which
would send prices ADJOINING. irrespective OF con-
ditions in the loan market There were no news
developments OF importance up to the close Of
business but the strength in St Paul gave rise
10 many rumors regarding the future of the st.
Paul property. while the advance in Canadian
Pacific above the 900 mark was accompanied by
a rumor that the dividend soon would be in
creased. Buying Of this stock has been for the
interests, who predicting that it will pass
Great Northern. The market closed near the
best figures of the day with interest better dis
tributed than noted in recent operations.
Wall Street assumes that the money market
will be easier week, but there is well
defined idea that from now on there will be a
gradual decline in rates until cheap money final
~ appears. Cheap money may develop when the
country's industrial activities take the down
ward path, but just long there is active
demand for accommodated in mercantile quar-
ters there will be no plethora of funds at the
leading financial centres and a consequence
l or , per cent call money markets or 3 and 4
per cent time money markets out of the
question at present. Treasury relief recently
offered by Secretary Shaw and readily accepted
will not result in big decline in money. though
it will serve to relieve the acute strain under
which the market has been laboring for several
weeks while the high rates doubtless will not
attract enough money from the interior TO have
great effect on bank holdings in New York. Ac-
cording to the known movement of currency in
the current week, the local banks received more
money from the outside than they shipped the
excess being due TO shipments from nearby
points to take advantage Of the stiff rates for
loans, but this amount was offset by payments
TO the Sub-Treasury so that on ali accounts
there was an estimated net loss TO the financial
institutions OF S1,494, 500. The rate for call
money yesterday did not suggest a favorable
bank statement to-day. though the LIQUIDATION
that has taken place in loans in the last few
days may have been heavy enough to lessen the
deficit shown in the bank return Of week ago
wall Street sentiment was more bullish when
II became known that the banks had suffered
only relatively small loss in cash in the week
and it was generally thought that next week the
inhuence OF the government deposits and pur-
chases Of government bonds and prepayment of
government interest would be effective in ma
terfaly strengthening the position Of the lend
Ing institutions. This idea brought in no i'm
portant buying for ordinary public account. but
there were purchases by some Of the brokers
who generally execute the orders of substantial
speculative interests who have been consistent
bulls for many months and who do not believe
that money market considerations will for anv
further great length OF time repress the mar
kets natural upward tendency. While in the
new year rates for loans doubtless will rule at q
hfin level. the money market ought to be in a
more favorable position for speculation in
Stocks. and having this view in mind MANY
CAREFUL rich buyers taking stocks on ell
reactions 10 hold for several months df neces-
sary. In Thursdays break a large amount OF
puylng or this character was reported bv com
iIiiss'on houses. and It is quite likely that if
uneIe are further declines based on the strength
IN money additional purchases of this sort will
DC ihade- though II is not possible for small
uediefs TO handle stock market transactions
prohIaoiy at the present range of money quota
.ioih' 'eIe are many people OF means who are
iio'is uieir own funds in reserve TO take ad-
vantage OF all declines in securities vaues