New-York tribune., 1907-06-16
STOCK MARKET OPERATIONS.

N4
Stock market trading was light in volume
throughout the two hours of business a
movement Of values that again showed declin-
ing tendency. AT the opening there was enough
selling pressure to attract support from some Of
the larger financial interests, and a conse-
ouence of buying from this source a firner tone
developed. without, however. the accompaniment
of marked advances in any part Of the list,
these operations merely serving 10 stay the de-
cline. Following the publication of the bank
statement further weakness was reported and
at the close prices were not much above the
lowest of the day. Figures of the Clearing
House return were somewhat better than fore
shadowed by Fridays estimates based on the
known movement of money, which showed loss
in cash Of nearly 81 100000 the actual falling
off in this item being S2.6S3 200. Loans de-
creased 81, ,6S9, 500, deposits decreased S4,S69,-
200, and as a result Of all changes the reserve
above legal requirements decreased 81 ,465,9OO
TO S4514525. which compares with SIOI3,3lo
at this time last year and S12O90OO In 1SOo-
The percentage of reserve 10 deposits is 254, an
unusually low figure for this period Of the year.
and the chances are it will be stin lower next
Saturday. as foreign exchange conditions indi-
cate further exports Of gold in The current week.
The cancellation Of the Alton agreement was
factor in depressing Union Pacific securities
while it also exerted an influence on the general
list as It was argued relations between the Har-
rinan and Rock Island interests were strained
to a point warranting speculative selling or
stocks This situation does not, however. warrant
investment selling The Alton road Will now be
run by the stockholders, which will be far bet
Ter for the company than joint control by war
ring factions.
Money market conditions suggest the develop
r7ent of frmer rates for funds in the near future
and over the end Of the current month call
ouotations may strengthen materially, owing TO i
the preparations that must be made to handle I
the enormous July interest and dividend dis
bursements. With the return Of this money 70
the banks and with the amount Of cash that Will
be received by holders Of maturing government
per cent bonds rates doubtless will ease off and
remain relatively low until the demand arises for
currency in connection with the gathering and
marketing Of the years harvests. Strength in
Treasury conditions Is such to make an issue
of Panama bonds at this time unnecessary and
it encourages the belief that in the event of
stringency in the money market Secretary Cor
teyou will turn into the channels of trade idle
government cash. If the necessity should arise
this country would be able 10 draw gold from
Europe trade account, owing TO it's excess OF
merchandise exports imports. 1t is inter
esting to note however, that the excess ship
ments in the month Of May, the figures of which
were received yesterday, were much smaller
than the records of recent months. despite the
fact that exports Of food products and manu-
features were larger than in any corresponding
month in the history of the country. The excess
was SSOO1 .002, compared with S25, 639, 100 in
the same month a year ago and sos 1881 In
April The falling off due to large ex-
pansion in imports, which were heavier than in
any May record. amounting in value to $l26-
606.32S For the eleven months of the fiscal
year the excess of exports imports
amounted to $420953 77S OF course, part of
this amount has been liquidated by gold i'm
ports by the differentiation of imports. by
penses of American travellers abroad and by
foreign loans. but tits believed by the best in
formed foreign exchange men that comfort
able balance still remains in favor. In
creased imports a pretty good reflection of
the increased purchasing power of the people in
the United States.
Trade reports received yesterday from the
commercial agencies presented no argument for
pessimism over the business situation and out
look. The season has been backward in most
lines, but underlying conditions sound and
IN the iron and steel trade, which is faithful
barometer of industrial conditions, there is no
apprecable falling off in the volume of new
orders. The railroads. despite Wall Streets
fears of coming national bankruptcy, are plac-
ing neaVY orders IOT TalS ana equipment Tor
future delivery. and Notwithstanding the bear
growls in the Street OF trade depression the
transportation companies find it difficult to
handle all the traffic offering. And though
stocks go down railroad earnings go up. And
the chances now encourage the expectation that
we will have little wheat, corn and cotton and
will not starve to death perish from lack of
proper raiment Wall Street is the most fororn
spot in the country 1t is afraid of smaller
things than Its own shadow and 1t magnihes
atoms into ponderous mass. And all this time
there a few courageous souls who are
quietly picking up the attractive securities that
are on sale at than bargain prices The
public is not speculating, but investors are buy
ing good stocks on the belief that the country
will not go TO pieces and that some day prices
will be much above their actual worth as
they below it,