New-York tribune., 1906-04-24
STOCK MARKET OPERATIONS.

On an active volume of business stock market
values We're weak in the greater part of the day.
with sharp declines in a number of issues. no.
tably Reading in which there was a maximum
loss of y points While the unfavorable con-
ditons in the anthracite coal fields We're re-
sponsible in part for the weakness in this stock,
its price affected, as were the quotations for
all other issues, by forced liquidation for the ac-
count of interests involved in the San Francisco
disaster and by fear on the part of traders that
the position of the money market will be in
unsettled condition for many weeks hence. Trad
appear to be disposing Of long stock and
taking the short side. doubtless in expectation
Of further recessions in values. While no at
tempt was made to rally quotations, buying
the decline came from good sources, and
a result OF the days operations many stocks
passed from weak to strong hands. An excep-
ton to the early downward movement sup
piled by the Pacific Coast stocks, which again
appeared to be moving under the influence of
competitive buying It is said that the Hill,
Hartman and st. Paul interests are all anxious
to secure control of the valuable terminal ia
cilities of this property, and il is known that
certain large individual operators heavy
holders of the stock, which they do not propose
to sell under $50 In the last hour extreme
weakness developed throughout the list, amount
ing in some cases TO acute decentralization losses
averaging upward of 2 per cent. Heavy selling
by the trading element and further forced
liquidation We're responsible for the depression
in quotations rather than the development of
news affecting the general situation. Last prices
at near the lowest figures of the day.
with the heaviest declines in the Copper shares
American Locomotive, American Smelling
Brooklyn Rapid Transit, St. Paul, the so-called
Hill stocks, New York Central. Reading and
Union Pacific.
San Franciscos loss in property, which means
heavy extensions of credits and the withdrawal
of immense sums of money from the East.
doubtless will be the dominant factor in the loan
market for many weeks to come. The earth
quake and fire which for the time have paralyzed
business activity in the Pacific Coast city not
only are affecting the New York money market
but Europe we'll. the latter being due to the
fact that New York must obtain gold abroad at
a time when the European requirements in con-
nection with the financing Of the big Russian
loan urgent. It is estimated that foreign
insurance companies will be compelled TO pay
between s4O,0OO,00O and $5OOOO,00O on losses
sustained in San Francisco, and conse-
quence London and Paris will be called upon
10 remit gold in connection with these payments
but it reasonably may be assumed that outside
Of shipments Of the metal on this account for
eign bankers will make vigorous efforts to pre-
vent a wholesale drain to the United States
Fortunately local bank reserves, owing to Sec
retary Shaw's emergency measures, have been
increased at q critical period, but even this does
not warrant the belief which is held .in some
quarters that rates for funds Immediately will
decline to an easy level. The banking and com
mercial situation in San Francisco eventually
will be restored to a normal basis. but at present
il is I'm a grave position and will require an
amount of assistance from the Federal Treasury
possibility of return in this market of loan
quotations TO level which is ordinarily called
cheap money. and in the time OF this strain on
the money market spectators in stocks, cereals
and real estate doubtless will be compelled to
curtail their operations.
Notwithstanding all the adverse factors in the
present situation, the best informed bankers and
the men who have large supplies of available
capital are taking extremely optimistic view
of the outlook and they believe that eventually
prices for securities will to a higher level
under the influence of expansion in all depart
ments Of the country's industrial activities. The
stock market has wthstood many shocks since
last fall in manner which has encouraged
investment securities. and the fact that prices
al present are holding up remarkably well In
the face Of the serious losses which the COM
mercial and financial world of the big Pacific
Coast state have suffered undoubtedly will serve
TO attract an increased demand for all classes ~
securities just as soon money market con-
ditions return 20 easier basis. on every an
Dearance OF forced liquidation the market has