New-York tribune., 1907-05-12
STOCK MARKET OPERATIONS.

Stock market values moved in irregular
manner in the two hours of trading, with the
final tendency in the direction of higher quota
tions. Early changes as a rule showed small de-
cIines as compared with the closing figures of
the preceding day, while in the last half hour of
business the general list became moderately
strong with especial strength in Union Pacific
the improvement being due chiefly to covering
operations based on the appearance Of the
Clearing House return. which made far better
exhibit than Fridays estimates indicated. While
cash holdings suffered material contraction,
there was large decline in loans. which with
the loss IN cash accounted for decrease in de-
posits of more than SIC 100000, which in turn
brought about a decrease in the amount of cash
required against deposits, so that the reserve
above legal requirements expanded TO the extent
of 81 SCI 500 Total reserve stands at SS,4S6,225.
compared with s12,Se4,600 at this time year
ago and s16.712575 in the corresponding period
in 1905. Though the reserve item is low for this
period of the year and while loans outstanding
are larger than ever recorded at this time in the
past the general position of the associated banks
is not one of weakness and there is no eXpecta-
ton of the development of disturbance in the
money market in the near future. There may
develop a frmer tone in the loan market, how
ever. Higher rates for money would not be un-
welcome 10 the banks, but they doubtless would
serve to postpone any efforts to bring about
bull movement in securities, particularly as all
indications point toward further announcements
at no remote time of plans for the increase in
the capitalization of number OF railroad prop
critics
The so-called Hartman plan by which the
Union Pacific will increase its capitalization to
the extent of $4,000, 900 in convertible bonds
and the Southern Pacific its outstanding pre-
ferred stock to the extent Of S36000O00 is TO be
financed by prominent banking house and as
there no serious objections to the plan and
as the house in question will have at its COM
rnand foreign capital to take the issues if they
do not sell we'll here there is every reason TO be-
lieve that the latest Hartman announcement
will after a short time, help rather than weaken
the common stock of the Union Pacific Company,
from a market point Of view at least. London
has taken the plan better than New York and
this fact has been effective in creating consid
cradle uneasiness among the shorts who have
been selling the stock on the theory that even If
it a good thing for the company to raise
more money holders would nquidate the fear
that increased capital obligations would lead 10
a reduction in the dividend rate. Union Pacific.
It is contended by the most conservative in
terests IN the Street never should have been
placed 10 per cent dividend basis. and,
moreover. It is asserted that the best bull argu-
ment the stock a safe investment would
be its return to per cent level The new
Union Pacific bonds to be underwritten at
IS. price which ought to result profitably to
the managers of the syndicate and the members
when the bond market becomes more active
Just at present mortgage issues are selling at
attractive figures, but the demand is light and
it is therefore unlikely that there will be an i'm
mediate rush on the part of the public to take
up the Union Pacific convertibles. A number OF
bond syndicates In the last. two years have been
unfortunate, owing TO the paucity of public buy
ing orders.
Strength of federal Treasury conditions are
reflected in the large holdings in the govern
ment vaults and in the heavy government de-
posits with national banks. This situation will
serve to prevent any trouble in the money
kets of the country, under the Adrich Law
the Secretary of the Treasury has the power to
place in circulation Treasury receipts. while
under the terms of his recent circular the
matter Of the redemption OF the short Is he will
be able TO place in the channels of business
more than s42 000,oOO which will be paid 10
holders of the issues. 1t has been said in some
quarters that the Secretary Of the Treasury will
pay off the balance of government As from funds
on deposit with the banks but according to the
best Washington information the bonds will be
paid from cash held in the Treasury so that
government deposits will in no way be disturbed.
Talk of gold exports which heard early last
week has died out as consequence of the de-
cline In sterling exchange and there now ap-
pears little prospect of shipments of the metal
In the future, particularly the Paris loan
made to London in the winter has been liqui-
dated in great part and the supplies of money
creased materially There will be $4,000, 600
South African gold in the London open market
Tomorrow. and 1t is not unlikely the Bank of
England viii! get the greater part OF this amount.