New-York tribune., 1906-12-21
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Closing prices Of active bozas dealt IN. wit
STOCK MARKET OPERATIONS.

Liquidation - the stock market Cor the pres
ent al least apparently has run its course
Something approaching equilibrium has been
established a2d many market observers believe
that there Will be 20 moro serious breaks unless
tho banks E=6 :t necessary 70 indulge n further
hoavy calling oe loans. which are secured by
stock market collateral. II yesterdays trading
there vas g marked falling Of in the volume Of
business from the total Of the preceding day but
the movement os values presented much encou--
agernect for TIE advocates of higher prices.
Though realizing and bear pressure were efec-
tive in the last hour tlc cutting of so-oe Of the
early enhancement, Anal quotations. as a rule
were AZ net gains, with the chief advances IN
American Smelling. st. Paul Consolidated Gas
Great Northern. New York Central and Reading.
Louisville E; Nashville sold 2 points of from
SIS high price of the morning following the
failure Of the directors OF the company 70 in
crease the dividend, its decline influencing TO
some extent the rest Of the list. without how
ever, attracting important liquidation. Corara!s-
sion houses were not active factors on either
side oe the account the greater part Of the
transactions representing the dealings Of the
board room traders. C2M money while aver
aging u per cent. was easier in tone than re-
Gently reported but time funds were unchanged
lending as high as 10 per cent for th!rty-day
accommodation. The Street appeared to believe
that Secretary Shaw would do something further
for the money market. despite the fact that he
announced that his brief visit here on Wednes-
day was not for the purpose Of conferr1ng WITH
bankers on the monetary situation.
The liquidation that has taken place in the
stock market in the current week and the gain
by the banks or the!r operations with the SUP
Treasury ought 70 be effective IN restoring the
surplus reserve in Saturdays bank statement
though the movement Of money rates does not
tha ha Of
The Bank Of England made extremely poor
showing in its weekly return, which was pub
lshed yesterday, but change was reported in
the minimum rate of discount from the per
cent basis established last October 1t is quite
evident. however that any demand from New
York for gold would be followed by an increase
IN the rate. and apparently our bankers are
willing to check inquiry for the precious
metal in London for American account in order
TO prevent disturbance in the foreign markets.
Sterling exchange is at a level which under or
dinary conditions would bring gold 70 this side
of the ocean and despite the high rates for
money abroad New York would be able 70 bring
in the metal at profit If the Secretary Of the
Treasury would facilitate imports by depositing
with the importing banks an equivalent amount
Of gold pending the arrival OF the foreign en-
gagements. But the Secretary of the Treasury
recently announced that he would not encourage
gold imports. fearing adverse results in the
European financial situation. So far in the cur
rent week the local banks have gained more
than S50OOO00 from the government but this
may be Offset in part by Withdrawals of cash
from the banks incident TO the large holiday
trade, which according TO merchants. is break
ing all past records The response to the Secre-
tary's offer 10 buy government bonds has been
light, less than 100000 having been presented
for redemption The greater part of the deposits
made with national banks throughout the coun-
try is coming TO this centre
More favorable prospects for currency reform
as pointed out in The Tribunes Washington dis
patches yesterday. have been effective in Gre
ating more cheerful sentiment over the money
market, but there is one in the banking COM
munity who is willing 10 predict easy rates for
loans in the near future. Indeed. il is quite
generally thought that there will be something
Of squeeze over the end of the year The
January interest and dividend requirements will
be heavier than ever before recorded in a CORE
spending month, owing TO the large increases IN
dividends and the declarations of dividends on
securities that have never paid anything to the
stockholders. Following the example OF the New
YORK Central, the 81. Paul and the Chicago &
Northwestern have decided 10 pay IN advance
interest due on their securities in January.