New-York tribune., 1907-12-20
STOCK MARKET OPERATIONS.

A
technical market conditions marked the 0oui sc
o- prices on the Stock Exchange in the morning
and early afternoon dealings, especial improve
ment being recorded by the Northwest rdlioau
shares the trunk line issues and the ohl'eu
States Steel securities the last named being
helped by covering induced by The eVioehCe VI
heavy absorption Of these issues IN recent "een9
by substantial interests and by the generahs
optimistic sentiment expressed among steer dhi
iron men regarding the future OF the lhuustly'
On the advance in the general list Shofls VII"
had settled their contracts at last weeks 10"
figures put out new lines. and the ease "lth
which they got their stock back in the last hour
created moro bearish feeling IN specuIatNe
circles and led to active selling IN the hnai cP-
erations. The close was heavy, with much OF
the advance lost, and in some cases net declines
we're reported, though among the active shares
there were more net gains than losses. Amaisa-
mated Conner American Sugar Refining, Great
Northern Northern Pacific and Union PACING
presented moderate final gains, while Reading
and American Ice were lower heading enota
J6: under its best figures on renewed selling for
short account the decline following an advance
In Wednesdays market Of B points AS per
cent stock and in comparison with the price of
issues that pay more and are intrinsicauy more
valuable, Reading is dear at its current quota
tion and in this respect il is one Of the few ek-
ceptions Of the present market. The declaration
Of the regular dividends on the stocks OF the
American Locomotive Company and on the
Louisville & Nashville were among the days
news announcements Of interest to Wall Street
Money market conditions at this centre are
slowly improving as reflected in the iessenins
demand for currency from the interior. in the
excess receipts from the Trea sury in the last
few days and in the opinions expressed by the
leading banking interests regarding the propa-
bility of a speedy return OF a normal situation
after the turn Of the year. Though there Is
still premium currency, the inquiry for
rnds in doy RI
pearing and 1t doubtless will cease TO be fac
tor in the market early in 1908. while II IS not
unlikely il viii be followed by increasing sup
plies of funds in the local banks for several
months to come The monetary situation here
ought TO be helped by the showing made by the
Bank of England in its weekly return yesterday.
the institutions proportion Of reserve 10
liability is { per cent above the average at
this period in the last seven years the exhibit
being especially noteworthy as this is the time
of the year when the bank is compelled to meet
large withdrawals for interior account The
hank has yet TO finance large requirements for
South America, but these have been postponed
until January, when the interior movement
again Will be IN favor OF London. No change
made in the discount rate, which remains
q per cent, and il is not likely lower quotation
will be established until the American demand
for gold comes to an end This will develop
just as soon as the premium on currency be
comes a. thing OF the past Foreign exchange
rates are not at level that warrants engage
ments of gold abroad without premium on
money, but just long the need exists for
imports of the metal American bankers will be
able TO secure II abroad. In Germany monetary
conditions far from favorab bic. and higher
bank rate is predicted. The German situation
in many respects is similar to that recently pre-
yaling in this country. but international bankers
do not look for serious disturbance in other
markets a result of the troubles at the Ger
man capital. A reflection OF the strinsency in
Berlin is presented in the higher discount rate
by the Bank of Denmark.
While the money market outlook is far better
than il was month ago. current conditions
do not Justify the development at this time of
an active bull campaign in securities. notWith-
standing the cheap prices at which the greater
number Of stocks selling The advance OF
the last two days represented nothing more than
the readjustment of technical conditions. though,
OF course, the favorable dividend action by 50
many corporations naturally encouraged cover
ing operations which otherwise might not have
developed so soon, but the movement failed
to attract any important outside buying. Ev;-
IDENTIFY the banking interests who are financially
able to do will support the market on all
severe declines. and, forced liquidation has
been heavy in the last two months, there is
reason To suppose extensive bear operations can
be successful unless new factors should arise
that would make further liquidation necessary.
Bur traders should bear in mind that in spite
of the improving conditions in the financial
situation time money is ruling at practically
prohibitfve rates. that the local banks have a
deficit OF S4Uooo.gU in reserve holdings and
that there outstanding Clearing House GER
tificates To estimated amount of upward OF
s9ooO0ooo When money begins to return to
this centre when the banks retire their Clear
ing House certificates and when the deficit is
replaced by a surplus it will be time enough To
talk about sustained upward movement IN,
securities values. In the time money marke,
Yesterday funds for thirty days were offered at
~ per cent. The ruling rate for sixty days was
II per cent and 4 per cent for twelve months
Nothing was accomplished al these quotations
The prevailing rate for call loans WAS Sis per
Sterling exchange closed al an advance