New-York tribune., 1907-11-08
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market
were light in volume on a movement Of values
that generally tended in the direction Of cheaper
quotations. Lower prices in the foreign mar
kets induced by advance to per cent in
the Bank of England rate and an advance in
the French rate to per cent, together with
active selling in this market for European ac-
count. were effective factors in bringing about
a weak opening. and though a stronger tone de-
veloped in the midday trading, further declines
were reported before the close. the final result
of the various movements being substantial net
losses in all the active issues The volume of
business was made up in great part OF the oper-
atiOns in fifteen stocks but even in these Sc
curities. which included the usual prominent
shares, operations were confined to relatively
small totals. with the heaviest dealings in Union
Pacific, United States Steel common. Amalga-
mated Copper. Great Northern Pennsylvania
Reading and American Shelters, the last named
being the weakest stock among the active Issues
at a net decline OF points. Tennessee Coal and
Iron. transactions Of 500 shares lost % points
to 10l. Canadian Pacific on moderate sales lost
more than Z points, the selling being in great
part for foreign account following additional
evidence of liquidation in London for British
and German holders. In the final trading the
selling pressure was heavier than at any other
time ana room operators got their shorts back
easily. American Cotton Oil broke on the an
nouncement that action on the dividend owing
to money market conditions had been deferred,
and as in the case of all specialtes there
an extremely poor market for the stock. Sew
eral loans that involved the selling of the col
lateral against them were closed out in the day,
American Smelters and Amalgamated Copper
being especially affected Weakness in the
United States Steel sinking fund bonds was at
tributed 10 sales Of the bonds against Ten
nessee Coal and Iron lodged for conversion with
| the United States Steel Corporation, which
practically amounted to selling Of collateral in
loans. Foreign exchange strong, and call
money ruled higher than the preceding day.
That foreign bankers are alarmed over the
heavy Withdrawals of gold in London for Amer
irlF L.
Bank Of England and the Bank of France In
advancing their discount rates. and I'm an ad-
vance in the price of gold eagles in London.
Notwithstanding the rise in the bank rate at the
English and French capitals it is still within
the power of bankers TO bring gold to this
side of the ocean, owing to the premium on
currency at this centre. Additional amounts OF
the yellow metal We're engaged for import yes
terday, but it iE not unlikely a continuation of
this movement will lead to a further advance in
the Bank Of Englands discount quotation which
is now at the highest level since 1873. Wheth-
er or not ~ or per cent rate in London will
check the flow of gold to the United States will
! depend upon conditions here. which fortunately
show great improvement over those ruling
week ago, and which may improve to an extent
that will Justify a cessation Of the American
/ demand for the settlement Of Europes obga-
tions to this country in coin. It is to be hoped
! that such situation will develop tnasmuch as
the drain upon the gold supply abroad for
American account already is eXerting unset
tng effect upon the foreign markets, while
continuation of the operation would serve to
react on the markets in New York account
of the close financial relations between Europe
and the United States. It is interesting fact
that not only New York has been able to draw
gold from London, but interior cities as well
have called upon the Britishers TO settle bal
gnCes in golda little object lesson to the people
, in this country and throughout the world of
the strong position Of the United States as a
creditor nation. This country is taking from
Europe money owing it trade account and
if II is able to suspend the movement and allow
its credits to accumulate in London and other
foreign cities further object lesson Of its nan-
cial and commercial strength will be furnished
the world at large.
a large part Of the gold received in this city
by the New York banks will be Offset. doubt.
/ a. an influence upon to-morrow's Clearing
/ House statement by the shipments of currency
10 the interior, though reserve may show i'm
proVement through a reduction in loans which,
I il is generally believed, has been heavy. on
( their operations with the Sub Treasury the
banks have lost upward of $9000,000, while di-
rect transfers Of money to out-of- f-town points
nave been heavy, but the fact that currency is
moving from this centre TO relieve the neces-
stiles of the interior and to provide funds for
, the transportation of the crops should be put
down as one of the favorable features of the
current situation, the operation will tend to
, ease conditions outside New York while il will
furnish additional striking Illustration of the
ability Of the countrys chief financial centre to
finance the needs of the nations industries at a
time when local supplies of money have been
called upon to meet conditions unparalleled in
the history OF the banking community. Money
recently withdrawn from banks and trust COM
panies as a result Of a senseless fright on the
part of depositors soon ought to return TO these
institutions there is absolutely no reason for
boarding funds at a time when underlying con-
dtions are so remarkably sound A redepositing
movement Will be important influence in
bringing gold imports to an end