New-York tribune., 1907-08-29

STOCK MARKET OPERATIONS.

Prices advanced in the stock market yester-
day. on a combination of short covering and in
vestment buying. induced by the more promis
ing financial outlook both here and in Europe.
Most Of the active issues opened up from Tues
days final prices and during the first hour, on
extensive buying by the shorts, gains were made
throughout the list. The strength well
maintained during the day, with occasional f1uct-
uations, an upward movement in the last few
minutes bringing prices at the close to about the
highest of the session. with net advances scored
by almost every issue traded in. An encourag-
ing feature was the strength of the inactive
issues and of stocks which have beer conspcu-
ousy weak of late, like Distillers' Securities,
which yesterday made a net gain of 4ss points.
Almost at the close came the news Of the action
taken by the Erie directors, which appeared to
be we'll received by the market, and GER
tainly gratifying to the holders Of the first and
second preferred issues although in other quar-
ters it criticised with some severity, the
opinion being expressed that the directors might
with much more proprety have passed these
dividends, in view Of the poor financial position
Of the road and its great need for funds. instead
of making them an interest bearing charge on
the property.
News developments there were none and the
afforded the money market by the Treasury De-
partment and the prospect of success Of the
New York city bond Offering next month. Sec
retary Cortelyou. II now seems assured. will
place with the banks of this city about IS 000-
900 weekly for the next five weeks at least. in
stead Of distributing the government deposits
as widely as at first thought among institutions
in various parts Of the country. Not a great
deal will be gained by this change, however. as
It has been the custom for banks in the interior
in previous years, to place with the institutions
here the greater part OF the deposits allotted TO
them to be loaned in this market drawing
against these deposits occasion might re-
quire: and it is probable that the same course
will be pursued by them with the major part
TO them under the recent circular of the Sec
retary.
Increasing noted yesterday in the
time money market, loans for the nearer dates
being negotiated at rates lower than for several
weeks; and this was of course one Of the causes
of the better feeling in the stock market An
other gold engagement OF $500. 900 was made the
being destined for Germany; but this
was. like the preceding of this and last
week, a special transaction, sterling rates being
far below the normal gold export level. These
Withdrawals Of the metal for shipment to Eu-
rope, however, and a movement of gold coin to
Canada, s750,000 having been sent in the last
three days may result in a rather large decrease
in the cash item in this weeks bank statement
as the government deposits. although they have
begun TO be made, have hot yetsreached an i'm
portant volume. The net loss OF the banks to
the Sub-Treasury since last Friday, the $500 900
gold just engaged for export Germany and
the equal amount sent yesterday TO Canada not
being included, is figured at $2,s35,ooo