New-York tribune., 1907-06-26
STOCK MARKET OPERATIONS.

Dealings were conducted on a large scale as
compared with recent small totals. though stock
market trading amounted to only 459 Goo shares.
Speculation throughout exhibited an expand
Ing tendency that brought great encourage
ment TO commission houses and floor room oper-
ators who in the business of the last few days
have been unable TO make expenses The mar
ket not only more active. but ii also showed
bigger price fluctuations than reported in
week or so. with the tendency. as a rule, in the
direction of higher quotations. In Amalgamated
Copper Reading. Union Pacific. Sout hern Pa
Cific. Northern Pacific, United States Steel and
several other issues. advances ran from /
to 215 per cent, with the improvement well main
tanned in the final dealings, when long list
Of net gains was recorded. So-cailed clique
brokers were active. and commission houses
reported a few orders. including some for In
vestment account in United States Steel pre-
ferred Union Pacific and the Hill shares. the
latter also being taken by spectators of sub
stantial means. who will be able TO protect their
accounts in the event Of any disturbance over
the end of the half-year. Shorts covered on the
aprearance OF foreign buying. the latter ap-
parently being due TO the Improvement noted
in the situation abroad. and the attractive level
at which our securities are selling. Sentiment
was helped by the favorable weekly government
report Of weather conditions in the crop section
OF the country. by a decline in sterling rates and
by the evidence Of support from substantial in
1s-csts. An engagement of SlUDOoo gold Tor
export was followed by easier rates for sterling
and by the appearance IN the Fldfhel Oh llldii'e
bills
co far in the current month the excess of gov
ernment receipts over expenditures has amount
ed to more than S16O0000O, and indications
point toward a total excess for the month or
$50 OO0 coo which would make the surplus for
the fiscal year about S85,000000. Exclusive Of
disbursing officers balances. the government has
on deposit with national banks Sl690Il .3S9. Of
which S3O0OOO0O will be returned 70 the Treas
ury before July 10 under the recent order OF
Secretary Cortelyou but in redemption OF gov
ernulent bonds there will he paid to holders In
July about S3G 100000. which Immediately will
become available for reinvestment and ought
to he q factor in bringing about better
prices on the Stock Exchange The heavy July
interest and dividend disbursements also ought
to be an influence in tho market especially as
prices for solid investment issues are quoted at
such an attractive level. The banks are losing
to the Treasury and on gold exports, but so far
these two movements have not exerted an i'm
portant effect rates for loans, owing chiefly
TO the inactivity in speculation. Though more
of the precious metal may go out there appears
to be little likelihood Of strong money market
in the near future beyond hardening Of rates In
cident to the preparations for the J'ky pay
ments. Under present conditions in the specu-
lative markets this country will be able TO send
many more millions Of gold to Europe without
the development of a stiff money market, and
the fact that money does not advance materially
under the influence of shipments Of the metal
reflects a strong financial position here and en-
courages Wall Street to watch with equanmty
the outward movement which will serve to es
tablish the foreign markets on n better basis.
There is need Of the metal abroad. and current
foreign exchange conditions until yesterday
were favorable to Withdrawals from New York.
particularly the position of exchange between
Paris and London and London and this centre.
which enables Paris to enjoy the advantage in
the competition for the metal. The Bank Of
England has followed the example Of the Bank
of France in offering to pay the interest on the
gold in transit, but far the British capital
has obtained only trife more than S1.0O00OO,
the high rate of the Paris check on London
giving the Frenchmen the first call sup
plies. Paris exchange on London is nearly at the
point where gold should flow from London to
the French capital. and as long as this situation
continues Paris will be able to outbid London
for the American metal. Paris evidently is max
ing an effort to increase its gold supply to the
best figures of last year, and TO accomplish this
it viii have TO import $40,O00,OG0 more but it
is doubtful if this country will permit such an
outflow from here unless actually compelled to
do so by money and exchange market conditions.
Europe is not buying our securities, while it's
sales of Americans" in the last few months
have amounted to substantial totals; cotton
ports from last years crop practically are
over for the season and the movement of bread
stuffs is light. American travellers are carry
ing vast sums to Europe on their letters of
credit and American importers are bringing in
more foreign goods than ever before reported.
and as a consequence OF the latter our trade
! balance on paper is small and in reality is be-
ing wiped out by the factors already enurner-
ated; by the differentiation Of imports and by
the heavy interest payments made on American
securities held by foreign investors. Later on in
the year this situation will change to a material
extent, owing TO the resumption on a heavy
scale of shipments of cotton and grain from this
| years harvests, assuming. of course that the
| crops viii turn out well, as they promise to
| do. Much OF the damsge done early in the sea-
son has been offset by rapid progress in the last
! two weeks. and by the replanting TO corn OF the
acreage OF winter wheat lost by bad weather