New-York tribune., 1907-06-21
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Discussion of the merits of the Suburban
horses rather than a serious consideration Of
financial and railroad topics occupied the at
| tention of the speculative community yesterday.
1t was horse day on the Exchange and on the
curb, in brokers' Offices and elsewhere, particu-
larly in the little power house" in New street
where specUators while away their idle mo-
ments ana their active cash. No movements of
importance were recorded in stocks though
Reading showed little indication of life at the
opening and throughout the first two hours of
business, huctuating within 4 range of = point
and a half dealings that represented the
varying ideas Of different brokers over the fall
OF the Reading directors to take action on
the dividend In the general list early prices
showed a firm tone, while in the afternoon re-
cessions were general. leaving last quotations at
unimportant changes from the final figures of
the preceding day, net losses and gains being
about evenly distributed. Commission houses
were not active factors in the trading. and no
interest was manifested by the larger Wal!
Street operators the greater part Of the business
being supplied by the transactions of the board
room element. There was some disposition to
test the strength of inactive stocks and an ap-
parent effort to broaden the trading, but neither
movement was productive OF especial results.
selling OF the inactive shares making no par
. ticular impression prices and attempts %
widen the market failing most missrably. Read
ing and Union Pacific furnished the major por-
ton of the total dealings in the active shares,
the sales in these two issues amounting TO
5000 shares out Of 1906 shares in all Sc
curities, the low record for the year.
The Bank of England made change il its
minimum rate Of discount yesterday. though
the proportion of reserve to liability as shown
in the weekly return was somewhat better than
reported last Thursday. There appears TO be no
immediate prospect Of a reduction in the rate,
and It is not unlikely open market quotations
for money VIII remain firm just long as the
demand for gold at Paris continues. This in
Quiry for the metal ought rot to run beyond the
end Of the current month. In that time more
of the metal doubtless viii he taken from the
United States for French account, while London
also may engage gold at this point. foreign
exchange is moving in direction that suggests
the possibility Of a level at which the British
capital could draw on New York without offer
ing any special inducement. such the pay
ment Of interest on the metal in transit IS
being done by the Bank OF Franc The supply
OF foreign exchange bills al this centre is
trenely small, but the chances favor improve
ment in the situation before long, and II IS not
likely that bankers Will put out a large amount
OF finance bills in the near future in expectation
cf being able 70 cover with grain and cotton
bills later in the year. The current high rates
in the exchange market make the negotiation OF
finance bills an attractive operation, and al
ready few drafts Of this character have made
their appearance in the Street It is believed
there viii be a good supply Of grain and cot
ton bills In the market in September, and until
that time rates fOr sterling doubtless will rule
at firm level though IL is not thought gold
Will continue to go out in volume after the 500
G0G.0O0 mark has been reached. Money must
inevitably advance If Europe shows a tendency
TO tap our gold holdings to a further material
extent. while irrespective of the gold export sit
uation quotations for leans viii advance over tho
end OF the month, owing to the preparations
that must be made by the financial institutions
TO meet the demands incident to the large July
disbursements
Though the reserves Of tho local banks are
unusually low for this period Of the year the
general position Of the Clearing House concerns
IS strong. with no indication OF weak spots Loans
are well margined. and the credit men Of the
various institutions say there is no indication
or weakness in conditions back Of commercial
paper obligations This means that trade con-
ditions sound in all parts Of the country
The volume of business in commercial paper Is
moderately large. there is a fair demand for
time loans Of long maturities while practically
nothing is being done in cali money The banks
can afford to accept lifeIess market for call
funds with composure They have had an ex-
tremely profitable year. and in many cases ara
announcing extra dividend distributions The
Fifth Avenue Bank, for instance, in addition to
declaring its regular quarterly dividend, has
Just decided to give its stockholders an extra
payment Of $50 per cent out OF the profits Of
1906. Holders of bank stocks will be in clover
on July ], and it is not unlikely they will take
advantage OF the low prices on the Stock Ex-
change to reinvest their extra income in attrac-
tive securities. Careful market observers be-
lieve that when conditions become ripe for a
bull movement it will be found that trernen-
dous amount OF stock has gone into the hands
of investors. and that the floating supply avail
able for speculative purposes is relatively light.