New-York tribune., 1907-06-29
STOCK MARKET OPERATIONS.

The stock market developed a heavy tone
in the final dealings, after showing decided
strength in the first four hours OF trading
In the greater number OF issues the early i'm
provement was entirely lost while in many is
sues net losses were recorded at the close Re
alizing sales were moderately heavy, but the
chief cause Of the late decline was the eXhaus-
ton of the buying power and selling pressure
from the professional element which based its
operations on the practically complete failure Of
the city bond sale AS the Street recently has
been laboring under the impression that the
city would have no trouble in selling its i per
cent bonds owing to the Improvement in senti-
ment and conditions in the financial commu-
nifty the small offers were surprise
and disappointment, the latter being ac-
Centuated by the unwillngness, and perhaps in
ability, Of the large banking houses TO make
bids for the issue, which represents a first class
and absolutely safe per cent investment. OF
course, this is not an oppOrtune time for the
Offering Of city any other kind OF bonds, but
the failure Of the operation in no way reflects
upon the credit OF the city and does not mean
that New York will not get funds for its con-
tempated Improvement plans. 1t does reflect
however. the tied up condition Of the larger
banks and banking houses with undeTwrit!ngs
Of stocks and bonds for which there is mar
ket at present and the unfavorable position OF
the money market Another factor working
against subscriptions by Wall Street houses Is
found in the release of a large amount Of city
bonds held against government deposits which
have been recalled by the Secretary or inc
Treasury. Probably If the Controller had Of
fered Az per cent bond there would have been
greater willingness on the part Of bond houses
TO work to make the issue a success. and il IS
thought that such q rate may be found neces-
sary in view Of the high price money now COM
mands. Maximum declines IN the stock market
amounted 10 IL in Amalgamated, in Ameri-
Smelling. 12s in Atchson 2i4 n st. Paul.
2A in Great Northern, 25s IN Northern Pacific.
1h in Pennsylvania, ia in Reading, rs in
TDaxi II
The selling following the announcement Of the
city bond bids heavy and at the close senti-
ment bearish. with every Indication OF
lower prices in to-days market.
Call money advanced TO - per cent yesterday,
while sterling exchange declined TO a level that
dispelled all uncertainty over the possibility Of
further gold exports TO Paris in the Immediate
future The Bank OF France would have called
on this centre for additional shipments of the
precious metal II exchange market conditions
had been favorable for such an operation, and
It thought that in the event Of a decline
in money at this point after the July payments
more gold would be sent abroad. The outlook.
however, for period Of extreme ease in money
is not promising. Bank reserves are low. and
though they will be helped by the government
payments next month maturing federal
bonds 1t is not likely that the supply Of funds
will increase 10 an extent that win warrant
cheap money, especially as greater activity has
developed on the Stock Exchange. There has
been distinct improvement in the character Of
transactions IN stocks in the last few days.
Prominent commission houses have received
increased buying orders from the public and
substantial interests In the Street have
shown disposition TO support their favorite
issues, this being particularly pronounced in
shares that are included in the sO-called Stand
ard OIL group. St. Paul has been bought by
No. 26 Broadway. 1t is maintained that this
issue is selling far under it's investment worth,
and the same thing is asserted OF Union Pacific.
the Rock Island securities. Pacific Coast. Cana
dian Pacific. the United States Steel issues and
many other representative shares. Rock Island
stocks have been bought in fair volume in the
last two weeks by interests who have studied
the possibilities OF the Rock Island system and
who note that in the current fiscal year just
closing the companys gross receipts will sh0w
gain the preceding year Of about ST.
100000 The Rock Island lines run through a
country that is making rapid Industrial prog
ress, and the policy OF the Rock Island manage
ment is to spend money on its property
10 have the facilities with which TO handle the
increased traffic that must be offered as the
territory develops. Dividends on Rock Island
preferred were suspended two years ago and
| IL now looks as If the company would soon be
! in a position 10 resume payments to the stock
holders.
Reports received yesterday by the commercial
! agencies from ali parts Of the country show
! improvement in most lines of trade due in
/ great part 10 the seasona BILE weather and no
! signs of anything more than q healthfui reac-
ton at some failure period. II IS the general
belief in business circles that depression will
not develop. but IL is thought that in the course
OF the next twelve months a quieter tendency
| will be noted. The crops are making GOOD
/ progress. and the idea held in some quarters in
the late spring that 1907 would he year of
! famine no longer is entertained Accommodating
! favorable factors strengthen intrinsic values of
securities and encourage investment buying