New-York tribune., 1907-01-18
STOCK MARKET OPERATIONS.

The stock market was weak during the greater
part of yesterday. but the liquidation not
extensive on Wednesday, and the efforts
Of operators for the decline, although not lack
ing in zealousness, were rewarded with much
less success than the preceding day. The
Southern Railway issues. on which the attacks
had converged on Wednesday, receded further
from a point to a point and half. but showed
evidence of support which had been lacking
the day before and closed with small net
changes the common losing as per cent and the
preferred gaining as much. The Erie stocks
were depressed on the news OF the bond synd!-
Gates dissolution. and closed from q to IL
points down, fractionally above the lowest OF the
day. The Hill issues closed practically
changed. The action of the Bank Of England
in lowering its discount rate to 3 per cent was
the most important development of the day.
marking for the present. least the end Of
the period of UNUSUAL strain in the money mar
kets Of the world Here the indications con-
tinued to point to in money. the call loan
rate again declining with 31a per cent the maxi
mum for the day, and, more significant, time
money rates also showing further relaxation,
with borrowers reducing to SO and 51a per cent
their bids for four to six months funds. The
banks are still adding to their cash stores. and
estimates Of the total gain to be shown in the
cash item tomorrow range high as S10.000,-
900 TO S12,OOOOOO.
The uncertainty the action OF the Anal
gamated Copper directors had TO certain ex-
tent the effect Of restraining the operations Of
the shorts, although the dividend declared, the
same that Of three months ago. had been
generally looked for. and its announcement had
little influence on the price Of the stock. It is
not always, though. that the Amalgamated man.
agement act as Wall Street expects them to
act, and. with the knowledge of the heavy
earnings which the company is making the
Street could not feel sure that the dividend
might not be raised at this time. The Amalga-
mated announcement came out toward the mid
die of the last hour. and thereafter the market
was dull. declining slightly to the close. which
was irregular, with few price changes of i'm
portance. 1t is probable that the favorable
money outlook will be reflected to-day in a
stock market advance, dscounting the expected
excellent bank statement Of Saturday; hut no
advance at this time reasonably be expected
to be OF material proportions. in view of the
enormous demands for cash made and certain
to be made by corporations needing money to
enable them to handle promptly and profitably
the great increase of business which the ma
tional prosperity has brought to them.
The per cent discount rate of the Bank OF
England had been in effect since October 49, or
for three months, and followed increases to
per cent in the preceding week and to per
cent IN the middle of September 1t had been
nearly thirty-five years since the rate had previ-
ousy been established at per cent except for
a brief period in the course of the Boer War
That a reduction would soon be made had been
probable for the last two or three weeks from
the steady swelling Of the banks coin holdings
and the continued advance in the proportion Of
It's reserve to liabilities, a proportion which
now stands at the high figure of 45 ner cent.
and had been apparent for the last week or So
from the decline in the open market discount
rate in London and from the advance in for
eign exchange London at various centres
which tended to dispel the apprehensions of de-
mands from those centres for gold In the near
future. Another indication yesterday Of the
improved money situation abroad was found In
the weekly statement of the Imperial Bank Of
Germany, which showed gain in cash amount
ing to S2.4S0000 marks