New-York tribune., 1907-12-25
STOCK MARKET OPERATIONS.

Transactions in stocks were light in volume
and made up in great part of the operations OF
the floor element, commission houses being
unimportant factors in the dealings, while the
more substantial speculative interests were out
Of town or else were not inclined to take an
active position in the market Price movements
showed great irregularity, though fluctuations
Were confined within narrow range with the
general tendency in the morning In the dlrec-
ton of lower quotations and some slight i'm
provement before the close, final figures pre-
senting rule insignificant changes from the
preceding day. Stiff rates for money naturally
were effective in checking activity on the
bull side of speculation. but the absence of Quf-
dation and the failure of the early selling move
ment TO bring out long stock encouraged eau
ton the part OF traders who We're bear1shly
Inclined and induced a movement in the after
noon that reflected little beyond the evening Of
contracts incident to the holiday. Reading, New
York Central and Union Pacific were TIE only
stocks in which transactions were at all active,
and in these issues, as well as in other parts OF
the list prices as a rule were heavy and lower
at the close Many people apparently have the
issues named for sale on all rallies and at all
times. irrespective Of the movement Of values,
and it is common knowledge that IN spite or the
strength of the companies, from an investment
point Of view based dividend returns,
the stocks are in a weak speculative position
and look like good sales on all rallies. There
has been so much manipulation n'these securi-
ties that investors evidently are in the dark re-
garding their real value. The general market
closed heavy and stagnant. Sterling exchange
rates were weak.
Government expenditures are running well
ahead of receipts and this fact together with the
low position Of the Treasury's working cash
balance suggests the probability of call by
the Secretary Of the Treasury upon national
banks in the future for return of part
OF the federal deposits placed with depositary
institutions emergency measure in the
money panic in october. So far in the current
month the excess Of expenditures over receipts
amounts to S6,474,637, making for the fiscal year
to date an excess of s7,242S96, and the cash
balance in the Treasury amounts to less than
s12,000,000 it is easy to figure out why the gov
ernment viii feel compelled to call upon the
banks just as return movement of fed
eral funds can be made without upsetting lnan-
cial conditions. And from present indications
that time is not far distant as general improve
ment is reported in the money market Of the
country with the promise OF a material in
crease in bank holdings at this centre early in
the new year and a gradual disappearance Of
the deficit in the reserve item OF the Clearing
House institutions. On their operations with the
Sub-Treasury the local banks have gained since
last Friday upward Of s2,000,000, notwithstand-
ing moderately large transfers of currency to
the interior and it is therefore not unlikely
Saturdays bank figures will present a further
gain in cash and reserve holdings unless the
shifting Of loans incident to the preparations
for January interest and dividend disburse-
this account, but if q big gain Is shown
in the latter the actual position of the banks
will be better than exhibited by the return Of
averages.
Money rates always are firm in the last week
of the year. Call loans ruled at "a per cent yes
teriay, and they doubtless Will continue at a
stiff level for several weeks to come but by the
middle OF January there ought to be appre-
ciabe change and enough available funds in the
banks to finance moderate bull speculation in
securities. No one, however, is looking for the
development of a long period OF sustained bull
operations, much such movement may be
desired. If the return Of normal conditions in
money is accompanied by resumption of
1yity in all lines of business the outlook will be
more favorable for the advocates of higher
prices, but il should be borne in mind that the
requirements of an active trade will impose
new burden upon the money market and that
commercial necessities will receive the first
consideration from the banks Absence Of any
attempt to bull stocks in January will to
insure a better market later in the year.
Stocks are still cheap for investors even in the
event of dividend reductions in 1905, and there
doubtless will be buying for investment
account with the proceeds from the first Of the
year payments.