New-York tribune., 1907-12-30
FINANCIAL MARKETS.
TR4DERS' OPERATIONS.
Sentiment More BuiLsh-Currency
Premium Going.
THE WEEK IN WALL STREET.


In tba last week operations in the securities
markets were made up in great part OF tne
transactions of the professional element, tne oiS
innportant dealings for public account helhs re-
ported in the bond department In whlcii 'iieIe ~
were a number of fair purchases Tor 1h'eStiieii'
interests Bonds are cheap at the current lever.
and the same thing may be said OF nrsl class
railroad and industrial securities. but at 'he
moment the amount of money aValiaoie lot act-
ual cash movements either in STOCKS OF nohos
is extremely limited and undoubtedly Will not
Increase TO any material extent in the near
future despite the fac1 that a large amount OF
money will be disbursed on the first of the year
TO holders of American securities A return OF TINS
money TO the stock market is possible but not
nroha hle Investors viii need their funds for
other purposes, and the sum that may be re-
invested in railroad shares or mortgage issues
will not be great enough to affect quotations.
though some operators are looking Tor a Dis
bull movement on the Stock Exchange imme-
diately after the January Disbursements The
bankers who are interested in the permanent
welfare Of Wall Street do not advise activity on
the bull side of the market at this juncture-
They believe the factors underlying real values
are sound, but they appreciate the fact that
money market conditions do not warrant ag-
gressive speculation in securities, and they
wisely are warning their customers against eX-
tensive commitments on speculative account at
present. The year of 1907 has been an
fortunate for Wall Street in ways than
one. but ii may be well to bear in mind that the
country is not going into bankruptcy, that the
American railroads will continue TO run, that
the great agricultural community is richer than
ever before known, that famine will not stalk
about the land and that American pluck and en-
terprise will not die It is good time for eau
ton, but there is no reason for depression.
Bank cIearingS continue to show a reduction
from the large totals recorded in corresponding
weeks last year the loss for the last five days
of business amounting TO 33 per cent, New York
supplying the heaviest decline In all cities.
however, there was material falling off from
the same time in 1906. representing an actual
curtailment in business operations. which found
further reflection in lighter railroad earnings in
most parts of the country and in the decision
of many well managed corporations to suspend
or reduce dividends. For the first week in De-
cember railroads reporting show decrease in
gross returns of more than per cent. for the
second week a decrease of per cent and for
the third week a decrease of 31a per cent, with
the heaviest declines in the Louisville & Nash
vile, Southern Railway, Missouri Pacific, Texas
d Pacific. Denver G Rio Grande, St Louis
Southwestern, Wheeling & Lake Erie and the
Wabash Comparisons are made with period
when transportation receipts as rule were
heavier than ever reported in similar time, and
the current declines therefore are so signif-
cant as they appear the surface especially
as in most cases results better than they
were in 1905 and preceding years. And the
same thing may be said of bank cearings. No |
one can tell at present what extent business
ItdClion VIII rum out II generally Is believed 1t
VIII not reach serious proportions and that |
soon normal conditions return in the money {
market there will be substantial Improvement !
in industrial operations in all parts of the coun-
try. Concerns that suffering from con- !:
traction in their transactions base their troubles
entirely upon the restriction placed on credit by :
the recent financial upheava but the fact that the
outlook favors freer movement of money after !
the turn of the year encourages the expectation /
OF a general recovery in 1908 from current de- /
preston, though it is thought trade will be "
somewhat slower in the new year owing to the !
uncertainties in connection with the outcome of /
the political campaign.
It is generally believed that within a few
weeks the government will call upon national
banks for return of some of the federal de- !
posits which were placed with them for emer-
gency purposes in the panic days of October
and November Depositary institutions hold for
the account Of the Treasury more than s254 00O-
600, including funds TO the credit Of federal dis
bursing officers, while the actual working bal
ance in the Treasury is less than 5000, 000 AS
conditions improving throughout
the country a call may be made upon depositary
banks without the accompaniment of disturb
ance in the financial markets but the fact that the
Treasury Will be compelled to take such action |
does not encourage the hope that Spectators in |
stocks will be able to secure in the near future
a supply of accommodation large enough to |
finance extensive bull operations in securities
In the few remaining days Of the present year
is not unlikely loans will be quoted at stiff fig
ures until the end of the second week in Janu-
ary at least. After that time there ought to |
be gradual increase in bank holdings and an
appreciable easing in loan quotations Call
money has maintained high range in the last
week while time funds at practically pro-
hibltiVe quotations. but toward the end Of the
week the general market presented better tone
with q disappearance of the premium on cur
rency- The demand for currency in the last |
three days of the week unimportant and
brokers thought the new year operations in the
money market would not be accompanied by an |
inquiry large enough to justify premium.
Throughout the week preparations were made
TO meet the heavy January interest and dividend |
and the arrangements were con-
cluded without important disturbance in money |
recent dividend reductions bv |
many companies January payments to stock |
for corresponding time in the history of the |
country, the total being estimated at above |
S165,000, 600 Though some conservative OBJ /
servers believe certain railroads have adopted a !
mistaken policy in maintaining high dividends |
and in some cases in advancing their rates it is |
by the directors OF the roads in oues-
ton that the business outlook does not contain |
elements that foreshadow a protracted period OF |
reduced earnings
rYnDvnJC HDEaTEcT INT H1n |