New-York tribune., 1906-12-30
STOCK MARKET TRADING.

In the two hours of trading in yesterdays
| stock market prices moved under the influence
of a selling pressure, which represented actual
| liquidation as much as operations for the short
! account. Indeed in such shares as Reading,
Union Pacific. ST Paul and the Hill issues there
We're forced sales, and, of course traders took
advantage of these transactions TO help the
| downward movement. In we'll informed quar-
! ters it thought that the LIQUIDATION was
nothing more than the tail end of movement
which has been going for the last week for
the account Of number Of interests which had
become too heavily involved in a number of the
high grade securities. There was no aggressive
buying, and the only support. if it may be so
called, came from traders who desired TO even
up their books over the end of the week A
feeble attempt was made however. 10 make
Atchison leader Of a rally but it was unsuc-
cessful, while even favorable bank statement
failed 10 affect quotations. which closed at about
the lowest Of the day. with a long list of net
losses, heaviest in American Smelters, st. Paul
Great Northern, Northern Pacific, Reading
Union Pacific and Canadian Pacific There was
some selling of Canadian Pacific on the slight
decline in the company's November net earn
ings as compared with the same month year
ago. but the stock well taken by interests
which know the value of the property and un-
the month is not significant of any change in the
conditions affecting the property. Compared
with two years ago, earnings show gain and
as last years returns were unusually large
while expenses this year have been fncrea sed
through bad weather the small falling off In net
cannot be considered adverse argument on
the stock. Actual business handled was far In
excess Of that reported last November. Cana
dian Pacific, unlike some other roads in the
Northwest, is doing fancy financing.
Wall Street listened 10 various runorg affect
ing the standing OF certain houses but there
We're no adverse developments, though IL was
said In well informed quarters that assistance
had been given 10 a firm which found itself in
difficulty as the result of the decline in the
high grade shares. And then the report was
forests had been compelled to borrow on cal!
sl000,oo0 at high rate to ward off trouble.
but there was absolutely no truth in this rlImor.
Its circulation being based on the fact that the
interest in question borrowed 100000 on the
STOCK Exchange for a customer at per cent.
Rumors often hurt stocks more than actual de-
velopments. The bank figures received scant
attention from stock market traders though
they showed an increase in reserve of s2OSS-
525. bringing the reserve above legal require
ments TO s5,369.225, which compares with s4-
"a
IN 1904. Cash holdings increased s4.5Ol, 400.
while loans rose s5.7S9.7O compared with a de-
crease OF more than S5.oOO,00O In the corre-
spending week in 1905. The periodical state
ment that Mr.. Hill will retire from the presi-
dency Of the Great Northern. the agitation against
the St Paul company over the question Of its
unfairness 10 the small stockholders and the
report that the stock might be thrown off the
stock Exchange list. incidentally had soms ef-
feet on values, but the main cause of the weak
ness was forced selling. There has been a large
amount Of this sort Of selling in the last week
and the market is all the stronger technically
for IL.
Notwithstanding the LIQUIDATION that has TAX
en- place in the stock market in the last few
weeks, the heavy declines and severe losses
among many operators, Wall Street at the close
Of the year is not suffering from the blues and
Is not AT all discouraged over the prospects for
1907. Indeed as far the new year is con-
cerned ii is the general belief in speculative
quarters. as we'll as in banking parlOrs that the
stock market in the first two months of the
year will give a good account of itself and
that losses made in the closing weeks of 1906
WIZ be recovered. especially in the shares which
possess intrinsic merit. And, as most of the Sc
curities dealt in on the Stock Exchange at pres
ent are worth intrinsically more than the prices
at which they quoted, IL follows that IL there
is 10 be an upward movement practically the
entire list viii share in the improvement There
have been heavy declines from the high prices
or the year-prices which in many cases We're
infiated-to a level at which investors will be
willing to place the proceeds OF the January
disbursements. and If money eases, as IL doubt
less Will there ought to be something of Janu-
ary rise before the end OF the month The first
week In the new year seldom is profitable for
the bulls. owing 10 money market conditions
including the payment OF sums of interest
money, but thereafter the custom has been for
prices to advance. and there is no reason why
they should not follow precedent and record
better figures in the near future. While there
probably wlii not be as heavy a return flow Of
currency from the interior in past seasons
owing to The active employment of funds in the
chh!inels oi trade at all interior points, il is
interesting u note thai last week the hanks
gained on iEeir rleG: items with out IF to,vn
Win tie prospects favoring q large enough
movement IN Janu2ly ana February toward this
centre To prevent repetition OF the exorbftant
price for money that recently has prevailed