New-York tribune., 1907-03-23
STOCK MARKET OPERATIONS.

While the volume OF business in yesterdays
stock market was not heavy. as compared with
the large total on the same day 3 week ago.
transactions in the leading issues reached sun
stantial proportions a movement OF values
that generally tended in the direction Of lower
quotations. Losses of from to 3 points were
common, while in several issues the decline was
larger, notably in the Erie shares, Great North
ern, Northwest, Canadian Pacific, St Paul. Della
ware & Hudson and Union Pacific. in which the
decline averaged more than five points, Erie
second preferred leading with loss of 9ls net
The Erie stocks were under pressure in the
greater part Of the day. but there was no evil
dence of liquidation for the account Of I'M
portant holders, the selling representing, as
rule. the operations OF the professional element
and the LIQUIDATION Of margin accounts which
were weakened by the aggressive attack Of the
bear contingent. Tho drive against these stocks
was based on the retrenchment policy Of the
company and the reasons underlying that policy
as announced IN the conipany's Official state
ment. This selling. encouraged bear activity in
other shares. the movement being accentuated
by foreign sales ana weakness in the markets
abroad. In the afternoon trading pressure was
particularly heavy in stocks actively dealt in
on the London Exchange. and efforts We're made
10 create the impression that there was weak
account abroad in Canadian Pacific, Erie, United
States Steel. ST Paul and the Hill issues, which
would be in danger at the fortnightly settlement
on the London Exchange next week. Canadian
Pacific sold at a new low price for the year,
but on the decline offerings were taken by
strong interests. though attempt was made
to support tho stock Canadian Pacific is a
valuable asset for any man to hold. and II is
not likely that actual investors IN the stock will
part with their certificates because of a decline
based on speculative considerations. Heavy
professional pressure and lack of buying power
prevented any important rally. prices ending
near the lowest Of the day.
Current conditions in the stock market do not
suggest the development in the near future of an
active sustained upward movement in securl-
ties. but. the other hand. there are indica-
tions that values VIII be further subjected 70
selling pressure OF the sort that recently has
been responsible for such heavy losses to the
followers OF the long side Of the market These
losses cripple the buying power in Wall Street
no matter whether they in actual cash or on
paper. and for this reason IF for no other many
careful observers believe that bull boom on
the Stock Exchange Is out of the question lust
now. There is plenty of money in the hands os
the public, bat the pu5lic is ightng shy Of Wall
Street speculation, apparently being content to
reinvest its PROFITS made in general business
prosperity IL tho channels Of trade rather than
In stocks despite the fact that prices for secu-
rites are quoted at level which returns to in
vestors an attractive interest yield. In the pub
lie mind suspicion that raiiroatl securities are
not as safe as they appear on the surface has
BEEN created by the speculative propensitics OF
railroad managers. by the lack Of conservatism
exhibited by some directorates in advancing divi-
dends and then borrowing money for improve
ments and by the gross manipulation OF securi-
ties in the interest Of people who have an eve
moro TO their personal profit than to the best In
terests Of the corporations which they repre-
sent Conditions OF this sort do not extend to
al the railroads and other corporations in the
United States. but corporations in general new
eTtheless, suffer in public estimation as a result
OF the sins OF a few, and until confidence has
been restored in the public mind there will be
no Widespread disposition on the part Of people
outside OF Wall Street TO take an active interest
IN securities operations.
According 20 the known movement Of money
IN the week. the local banks have gained in cash
holdings more than $4,000. 900. and as there has
been large liquidation in speculative accounts
carried on borrowed money on the Stock Ex-
change IT IS more than probable that to-day's
bank statement VIII make favorable showing
as compared with the return OF week ago. In
last Saturdays statement the loan reduction
amounted 20 more than sl3,00O,00o but under
the average system the actual loan movement
Of the week. which was on a heavily falling
average Thursday. was not fully shown IN the
Clearing House figures. and IL IS not unlikely
that the loan reduction due 20 the panicky stock
market OF last week win be more adequately re-
nected in this weeks figures. unless there have
been offsetting factors incident 70 the readiust-
ment OF accounts and the assistance extended
10 houses that have been on the ragged edge as
q result Of last THURSDAYS rango NToro,, ~,4o,