New-York tribune., 1906-12-06
STOCK MARKET OPERATIONS.

HI~h rates for both call and time funds served
TO check speculative activity in yesterdays
stock market. but they failed TO bring about i'm
portant declines or encourage liquidation by
substantial holders In the early dealings there
was some pressure from the professional ele-
ment and declines averaging per cent were re-
corded IN the active list Reading, Union Pacific
and Northern Pacific being the chief sufferers.
while n the afternoon the greater part of the
loss was recovered, final prices showing unirn-
portant changes in the majority of issues as
compared with the last quotations of the pre-
cedng day. Can money lent as high as 90 per
cent, with time funds running up TO per cent
for sixty days. and as the banks lost further
sums 10 the interior predictions Of a poor bank
showing on Saturday were freely made. There
was not much long stock offering on the advance
in money rates and the Strset appeared 10 feel
no Uneastness over the monetary situation, its
attitude in this respect being based. no doubt
on the belief that current disturbed conditions
in the money market VIII not develop elements
Of permanency. Outside Of the high quotations
for loans, general factors affecting Wall Street
sentiment were favorable, including the placing
OF the New York Central stock on a per cent
basis
Local banks are losing large amounts Of
money 70 the Sub-Treasury the loss so far this
week totalIing more than S5.0O0O0O. There Is
little chance Of a change in the character Of the
operations between the government and the
Clearing House institutions in the remainder Of
the year, and as the interior is not sending cur
rency 70 the East in any volume the prospects
favor high rates for loan accommodation
throughout the current month. And il is quite
probable that in the new year there will be firm
quotations. owing TO the expected continuance
OF trade activity.
The question OF relief from the Secretary Of
the Treasury was widely discussed IN Wall
Street, but in the best informed quarters II was
thought Up 70 the close Of business yesterday
improbable that AIr Shaw would for the present
extend further help TO the monetary situation
unless. as he states IN his annual report, th5re
should develop signs Of disturbance in the mer-
camille community as & result Of stringency in.
money. His reported action last evening, there
fore, comes surprise. There is hope IN
some quarters that the strength in money will
force sterling exchange TO a level that viii
encourage gold imports. despite the fact that
the Bank OF Englands rate Of discount
IS on 8 per cent basis, II should be
borne in mind. however that the Bank Of Eng
land is seriously opposed to exports of the yell
low metal 70 this side Of the ocean, and that a
demand from New York doubtless would be
followed by g further increase in the discount
rate.
The most conservative operators IN Wall
Street are not IN favor Of a big bull market
at this period They believe that a quiet spec
ulation now will insure a broad and advancing
market IN the year, while they fear that
any attempt 10 create wild speculation IN the
present month viii seriously jeopardize the
chances Of bull activity in the first few months
Of 1897. In view Of money market conditions
II IS 10 be hoped that moderation and common
sense will guide Wall Street in its operations in
the near future. II may become necessary for
the banks 10 reduce their loans in order 10 pro-
tect their reserves. and though stocks are in the
hands Of strong people extensive calling OF
loans would compel certain amount of liquida-
ton on the Stock Exchange, even among the
pools and individuals who are financially sound
The splendid condition Of the countrys indus
tries and the probability that any legislation
that Congress may enact will benefit our busi-
ness activities naturally furnish strong incen-
tive for the purchase Of securities but prudence
suggests the wisdom OF waiting until the money
market returns 10 normal level before tndug-
ing actively in speculative commitments at least
Oh lhe part or the so-called outsiders