New-York tribune., 1907-08-14
STOCK MARKET OPERATIONS.

Stocks enjoyed natural recovery in yester-
days market, based the exhaustion of the
selling power and on support from substantial
interests who took enough stock to cause rapid
covering by the shorts. The report that Sec
retary Root had been In conference with
bankers TO get their views present to
President Roosevelt regarding the situation
and the idea that upon presentation OF these
views the President would make a statement
again outlining his attitude toward corporations
were used with good effect in the afternoon
market, when advances of from TO points
were made in various parts of the list. EX-
celIent buying reported for investment ac-
count in all the leading issues, especially in
Anlalgamated Copper, st. Paul, Great Northern.
Pennsylvania, Union Pacific and United States
Steel preferred. The last named stock was taken
by many small investors. At its present price this
issue returns more than Z per cent. and il is
considered of the most attractive Industrial
securities in the market, with a future that ap-
pears 70 insure the maintenance of dividends IN
the poorest years OF the iron and steel industry.
Foreign markets showed some Improvement.
There no sign Of disturbance in Berlin, and
according to the best posted bankers in Wall
Street the reports Monday about the situation
in the German capital were absolutely un-
founded. Money is in Berlin, It is
throughout the world, but tight money does
not mean industrial and financial prOstration.
Time money here was firm. while call funds did
not lend higher than az per cent, with the
closed at or near the best figures OF the day,
with the chief improvement in the Hartman
shares. Arnalgamated. Smelters. Atchison. Great
Northern Consolidated Gas. New York Central.
Northern Pacific Reading, and United States
Steel.
Exchange at interior points on New York Is
moving toward the point which will encourage
transfers of money from this centre through
the Sub-Treasury to out of town cities. but
sterling exchange is under the level at which
gold should be shipped TO Paris or London at a
profit 1t IS possible, however, as recently
pointed out in this column, gold coin may be
shipped from here to Egypt where the demand
for the metal Is urgent, at time when London
is not in good position to meet direct the require
ments Of Alexandria. It is believed that the
gold sent from the United States Holland in
the last two weeks really for Egyptian ac-
count, especially as the shipment was in coin
rather than in bars, Egypt desiring the coin
rather than the metal in any other form. The
heavy liquidation that has taken place in the
stock market ought 10 bring about big reduc-
ton in bank loans, unless the larger interests
who have been compelled to support their vast
holdings have been heavy borrowers at the local
institutions, and with contraction in the loan
item deposits, OF course, will decline, and re-
serve above legal requirements will increase. So
far as can be learned, the banks have made no
request upon the Secretary OF the Treasurer for
assistance, and the chances are they VIII not
seek nelp from the government until a condi-
II
been suggested that in view of the strained
monetary position abroad IL would be unwise
for the Secretary of the Treasury 10 deposit
large lump sum with the national depositaries.
as a material increase in bank holdings would
serve TO lower rates for funds. and in turn at
tract 2 foreign demand for gold. The gem
ersl situation OF the money markets in this
country is not nearly as bad as some people be-
Iieve and there is cause for uneasiness re-
gardinE it The fact that money is scarce for
speculative purposes merely renects It's aclVlly
in the channels of trade
The prospects favor a continuation of pro-
duction and consumption in the United States,
activity on the farms and the running of
trains on the railroads The banks are not
going TO fail and even in Wall Street which
has been hit hard by the decline in stocks. there
have been no important insolvencies as re-
suit of the March panic and none from the de-
cline Of recent days. It is conceivable that
some of the smaller firms may be compelled 10
go to the wall in the event of further material
declines in values, but 1t is hardly likely any or
the large concerns will go under In spite of the
heavy burdens they carrying. Many snlal
investors were in the Street yesterday taking
advantage of the bargain prices, their opera
fions showing confidence on the part of men in
circles outside Wall Street over the future or the
general situation Buying by people who can
only afford 10 take odd share lots Is a good
sign In the aggregate their transactions In
the last two days have reached large figures
and the stock taken has gone out of the street
for an indefinite period. Wall Street went home
happy under the delusion that the administra
tion was about to make a change Of front in its
nosition on the proper regulation of corpora
tions.