New-York tribune., 1907-12-04
STOCK MARKET OPERATIONS.

Renewed weakness in the London market for
American securities and moderately heavy sales
for European account were among the FACTORS
that encouraged selling OF stocks by the pro-
fessionaI element in the forenoon trading, while
adverse comment on the decline in net earnings
by many Of the larger railroad companies ana
the strained relations between the New haven
and the Central Railroad OF New Jersey, tho
baltimore & Ohio and the Reading, result
of the decision of the first named company 10
withdraw through traffic rates In connection
with the latter companies helped to increase the
the pressure in the last two hours OF business.
The Presidents message contained many points
that did not agree with the ideas Of the element
in the Street that believes the railroads and ali
corporations are superior to the law, but the
best people in the financial community round IT
the recommendations Of the Chief Executive
reason for satisfaction especially In his remarks
regarding the need of currency reform. Wall
Street professed some uneesiness over the ap-
parent recall Of the Japanese Ambassador, out
its attitude in this respect was interesting only
as showing It's willingness to dwell upon factors
that had no bearing on the intrinsic worth OF
American securities rather than confning It's
attention exclusively, IL has done for so many
days to the financial situation The copper
shares reflected in heavy selling the poor posi-
ton of the copper trade and further unfaVor-
able dividend action by copper producing COM
panies and they supplied the few instances Ill
which values were Influenced by specihc de-
velopments affecting the companies represented
from one to three points, ST. Paul. Delaware &
Hudson Great Northern, Northern Pacihc.
Reading Southern Pacific and Union Pacific
furnishing the chief weak features. The United
States Steel shares showed resistance 10 the
selling pressure, closing only fractionally under
the final prices of the preceding day. Call
money was easier but there was no change in
time loans while the premium on currency ad-
vanced to 2 per cent. Interior banks were the
chief bidders for funds.
howl ,lyc far in he
gained on their operations with the Sub-Treas-
ury upward of $6.00O.OOO. due to assay office
checks on gold imports and government de-
posits but on their direct transactions with the
interior they have suffered considerable loss,
while indications point toward moderately
active demand from the West and South for
several weeks to come. Contrary to expecta-
tion, the premium on currency has not disap-
peared. In the last two days the inquiry for
money has been heavy enough to advance the
quotation well above the figures prevailing at
the close of the preceding week. but the rate
is nneasurably under the level ruling fort
night ago. and the chances are II soon will be-
come extinct under the influence Of increasing
supplies of money. The surplus reserves Of the
New York banks have been called upon to meet
the adverse developments Of serious situa-
ton. They have fulfilled the object for which
they practically were created, and they have
served TO minimize the effects of the financial
disturbance which otherwise might have upset
the very foundations Of our commercial pros
nerity. The reserves have served a good pur-
pose but this fact does not warrant the de-
yelopment at this time of q speculative orgy
in securities and any attempt at this 1uncture
to bring about widespread bull enthusiasm on
stocks will postpone complete recovery in the
financial world and perhaps end In disaster to
the promoters and foolish operators who believe
the low prices at which securities are selling
supplies guarantee OF big profits on operations
based on borrowed money. 1t Is good time for
investment purchases. but an unsafe time for
speculation that depends upon credit.
The net advance that has taken place from
the low prices Of the year. which were made
on November II for the railroad shares and on
November % for the industrial Issues, repre-
sents the covering of short interest and not
q public buying movement This advance has
carried the leading active railway stocks to an
average price Of about IS and the leading IN
dustrial shares to 60. compared with a low
average for the railroads of S1.41 and 53.0S for
the ;ndustYials. IN some issues the rise has run
from 10 to 20 points, and q general specu-
iatiye proposition II has adequately measured
technical market conditions The power of a
few strongly intrenched interests may be great
enough to carry the improvement further, but
the market has now reached point that ought
to suggest unusually large margins on the long
side of speculation With bank reserves show
ing a deficit of more than $4,000 900 under the
legal limit, with enormous financial require
ruents incident TO the January disbursements in
; view and with the necessity on the part of the
| banks of supplying the accommodation involved
| in payments securities issues not yet
financed in full. 10 say nothing of demands
raj''ch must ronle from corporations in The new