New-York tribune., 1906-12-11
STOCK MARKET OPERATIONS.

A deficit in the reserves or the Clearing t1ouSS
institutions is not driving Wall Street into a
panic And it is not likely that high rates
throughout the rest of the year will upset the
stock market beyond temporary pressure from
the bear element and sales by the few traders
whose accounts are not well protected. In yes
terdays early market selling of this character
was reported. and as a consequence prices were
weak in the greater number of issues. but in
the afternoon. especially in the last half hour
Of trading. the entire list advanced under the
influence Of covering Of shorts, the movement
being helped by a decline in money rates and
by rumors that the Secretary OF the Treasury
would make an announcement after the close OF
business promising further national deposlts Win
the banks The majority Of active shares not only
recovered their initial losses, but closed at net
gains. amounting, in Amalgamated Copper, TO L
point: American Smelling. g; American Sugar
Refining, is; Anaconda, 2A; Northwest, w.
and Reading, 2H. Commission houses were not
active factors in the dealings, as far as public
account was concerned, the chief part Of the
business originating the floor of the ex-
change, except. perhaps. in the copper shares,
which appeared to be taken by interests who
are making purchases TO hold on the strength
in the copper metal market. The copper stocks
IN London also were strong. Call money loans
were renewed at 25 per cent and advanced to %
per cent, declining to per cent after the days
chief requirements had been satisfied, while as
high as per cent and 10 per cent were asked
for thirty day money. Sterling exchange de-
clined early. but subsequently recovered.
The surplus of the Clearing House below the
o. per cent limit established by law is being
used in the present emergency, and the fact that
the banks have such fund for the protection Of
deposits does not mean that in times Of none
tary stress it cannot be utilized for the ordinary
purposes Of trade. Depositors are not alarmed
over current conditions for the good reason that
they know bank holdings at this centre are be-
ing depleted from industrial prosperity. Money
is being actively employed in all parts Of the
country and, while the reserves Of the financial
institutions are low. even for this period of the
year. II is generally realized that there is more
money in the United States than ever before in
its history, including large supplies in the Fed
eral Treasury, and that there is excuse for
the belief that soon there will be a panic as
the result OF our business expansion The
workingmen have more money than at any time
known. and they are carrying twice as much
money in their pockets than they generally are
accustomed 10 have, a factor which is of some
Importance in the prevailing stringency Of funds
in the banks. Speculation has been and stin IS
active in all lines in all sections Of the country.
except in Wall Street: the requirements of trade
are increasing, and the fact that New York con-
tinues 10 ship currency TO other centres merely
proves that the circulating medium of the United
States is being used to extend the commercial
prosperity which began several years ago. There
was shipped yesterday TO San Francisco $780,
600, and probably throughout the month the
local banks will lose further amounts to the Far
West and the South. with the attendant result
rP
anything that the Secretary of the Treasury may
do Government help at this time will serve to
strengthen the banks, but with a big deficit in
reserve easy rates can hardly be expected.
A small amount Of gold was secured in the
London open market yesterday for shipment 70
the United States. and If IL were not for tbe iqb
rate prevailing at the Bank of England the
position Of the exchange market in New Yorl,
doubtless would attract gold to this side OF the
ocean from the British bank. AS the Bank of
England has increased its holdings to a ma.
terial extent since the per cent rate went into
force, it is hoped IN some quarters that the eov-
ernors Of the bank soon will permit withdrawals
for American account, and It is even maintained
IN certain circles that despite the per cent
quotation this country Will be able to force
shipments. owing 20 large exports of mer-
chandise and cotton from here in excess Of
Imports and TO the buying OF American securities
which has been going on for the last two weeks.
Europe has taken a large amouI1i OF our stocks
| IN the. last fortnight, estimated at over 100000
! shares and there is good reason for the belief
that Europe is now in debt to a considerable ex,
tent to the United States. Wall Street is moving
slowly as far as stock market speculation is con-
cerned; indeed. ii has exhibited this attitude for
many months. speculation rule having been
confined to room traders and TO a few people
who have been able to make good turns out Of
such developments as the recent advance in the
| Union Pacific dividend rate information OF
which has been known i'm advance by few IA
J Nored insiders. Wall Street has not been able
30 borrow much money. for the reason that local