New-York tribune., 1906-11-18
STOCK MARKET OPERATIONS.

In the two hours of trading in yesterdays
stock market prices were strong throughout the
list many Of the active issues showing material
Improvement as compared with the closing fig
in Fridays dealings. The upward move
ment was based on the expectation of IA
vorable bank statement and on the belief that
easier rates for loans will develop this week
a result of return flow OF currency from the
interior. Notwithstanding the expansion in
stock market dealings in the last three days the
return of the associated banks showed a reduc-
ton in loans of more than S6OO0OOO while
cash holdings increased S2,S17, 800 these two
items being responsible for a contraction in de-
posits of S4,274,0OO, which in turn accounted
for an increase in reserve of $685., 800, bringing
the reserve above legal requirements to S2,3I1.-
90, compared with a deficit Of S1.514.125 a
week ago. At this time last year the reserve
was $2.915.150. and in 1904 S95S9 700. In the
last four weeks the Clearing House institutions
have reduced their loans $40 $50 100 against a
decrease in the same time of $14356 400 in cash
and decrease in deposits of S4O.217,6OO.
There was a moderately heavy demand from
commission houses for the leading issues while
operations for the account of substantial specu-
lative interests heavy, particularly in
Amalgamated Copper. American Smelling Great
Northern, Northern Pacific, Reading Union Pa
cific and United States Steel; also an excellent
inquiry for Missouri Kansas & Texas and Colo
rado & Southern. There are good reasons for
the belief that the low priced issues will be
active features If the current bull movement
continues. and if for any reason stocks in gem
eral do not move to a higher level in the
rest of 1906. there undoubtedly will be great
activity the long side of the market after
the turn Of the year, barring the development
of factors affecting adversely the position of
money and business in this country. The ad-
vance in Union Pacific of moro than 8 points
presented the striking feature of the day, and
opinion was quite general that further improve
ment would be recorded in the issue in to-mor-
rows market, especially inside interests are
accumulating the stock Union Pacific and
American Smelling are among the shares which
are talked about as candidates for much higher
prices. 1t is maintained that Union Pacific as
10 per cent issue ought to sell above 200.
Reason for the relative weakness In foreign
exchange is found in the statement of foreign
commerce for the month of October which
shows an excess Of merchandise exports over i'm
ports to the value Of SS9.271 ,46S. Exports in
the month were larger than in any month in the
history OF the country, amounting in value to
S1S7 ,33S.2S3. while. with the exception Of Oc-
tober year ago. imports were heavier than in
any corresponding period, amounting to S9S-
O66.115. There was large gain both in ship
ments of food products and cotton and a ma
terla1 increase in the exports OF manufactures
the total gain as compared with October, 1906
amounting IN value to S32 965 3O4 When there
were various offsets to the large merchandise
excess of exports. such undervaluation of i'm
ports. sales of American held securities abroad
travellers credits and interest payments due
foreign owners OF our securities enough ex-
change has been supplied in this market to
keep rates for sterling well under the gold ex-
porting level. Notwithstanding the abnormaly
high rates for money in Europe. When the
Bank of England advanced It's minimum rate of
discount to per cent 1t was generally believed
that sterling at this centre would be materially
affected. but at time since the Banks action
has the rate gone above 4S6. ruling most Of the
time from 60 to 70 points under parity.
The most favorable feature in the monetary
situation at present is the change in the move
ment of currency, receipts at this centre from
the interior now being in of Shipments
the gain last week amounting to more than
S1.OOoOOO. OF course. it win require a large re-
turn flow tos build up bank holdings and 1t Is
not likely that the shipments from out of town
Will be heavy enough in the next few weeks TO
bring about an important change in monetary
condltons at this point 1t Is encouraging to
know, however, that the tide is moving in favor
OF new York, and it is also encouraging TO know
lhat currency reform plan has been agreed
upon and will be presented to Congress at its
forthcoming session. Congress as whole may
not take kindly to the suggestion of practically
unsecured emergency currency but a start new
ertheless. has been made In the right direction
and the chances are that the question will re-
ceive far more attentive and intelligent discus
&hap