New-York tribune., 1907-11-23
STOCK MARKET OPERATIONS.

A decline in the premium on currency and
engagements OF gold at the Bank of France for
shipment to New York were the important de-
Velopments in the financial situation yesterday
that induced a more cheerful sentiment on the
Stock Exchange and a covering movement in
the afternoon that offset early declines and left
last quotations at unimportant changes as COM
pared with the final figures of the preceding
day. The conclusion was quickly reached in
the Street that the engagements of gold in Paris
1oreshadowed heavy exports of the yellow
metal from that point TO New York, but advices
from the French capital suggested the total of
shipments would not be large If this country
needs more gold, however. II will get it, but
there are many reasons for the belief that
the movement soon will come to an end as
financial conditions. in the United States are
improving every day under the influence of
rivals OF the metal already recorded, gold under
engagement and on shipboard, increased bank
note circulation and returning confidence in
financial and business circles. The gold OBJ
tanned yesterday in Paris was on commercial
paper, with a French acceptance and the pay
ment of slight premium. Opening prices for
stocks as rule were under last quotations in
Thursdays market. but the volume of liquida-
ton was small, and after brief period ceased
entirely followed by general covering opera
tions. which were accompanied by some invest
ment buying. Trading was extremely light in
all parts of the list, total transactions amount
ing to only 2SS,693 shares, of which two-thrds
represented the dealings in ten stocks, namely,
u.
York Central Pennsylvania, Reading Southern
Pacific. Union Pacific, United States Steel COM
mon and preferred. St Paul, Pennsylvania,
Reading Union Pacific and United States Steel
preferred closed at small net gains, and the
rest Of the list named at insignificant fractional
losses There were no important movements IN
any part of the market, the trading furnishing
less of interest than recorded in many days
The nominal character of speculation not
considered an unfaVorable factor.
to +ba Of
in the week the local banks have lost more than
Sc, ,000, 900 in cash. this amount not including
over the counter transactions, which in the
aggregate doubtless have been large. Cash op-
erations that do not figure in the weekly esti-
mate of Saturdays Clearing House statement
in ordinary times fail rule TO make a mate
rial difference between the preliminary esti-
mates and the actual figures of the return, but
in the present instances extraordinary condi-
tions prevail and bank statements cannot there
fore be forecasted with any degree of certainty
as to the changes in cash and reserve holdings.
The receipts of gold in the week offset in great
part the shipments of currency to the interior.
but the loss on Sub-TreaSury operations was
large enough to bring about a net loss in the
reported cash item. The heavy liquidation Of
loans. as reflected in the selling of stocks which
figure as collateral against bank accommoda-
tion may have been counterbalanced by the
extension of new credit in connection with the
active inquiry for funds from all parts of the
country, but IL is not believed there will be an
important increase in the deficit in the reserve
account, If any, though rates for money do not
suggest any marked improvement. An encour-
aging factor of the weeks movement of money
was a material reduction in the loss by the
local banks to the interior as compared with
the preceding week, the falling off amounting
to about S6.000,0m. Generally speaking none
tary conditions are better than they were
week ago and It appears likely interior
banks that recklessly have been Withdrawing
their balances from the New York institutions
soon will recognize the folly OF their action ana
appreciate the immense resources of this centre
available In times of stress. 1t also is likely
the foolish fear the part OF individuals VINO
have withdrawn their funds from banks soon
will disappear and be followed by heavy re-
deposting movement
A slightly better demand for bonds is reported
resumption of activity in the market for rail-
way mortgage issues will furnish an encouras-
ing sign Of better times in Wall Street ana
the fact that gilt edged issues are quoted at Il
level that returns bigger yield on the invest
ment than recorded in many years ought 10
serve the useful purpose of bringing out money
from places where ii Is doing the owner no
service and is helping to check the return OF
normal conditions. The forced necessities OF
many holders of mortgage issues are making
bargains for people who are fortunate enough TO
have idle funds on their hands. New low rec
ords are being made by issues that represent
companies the earnings of which, even IN Pc
rjods of great commercial depression, are well
above the margin of safety on their mortgage
securities and buyers under present conditions
can secure these investments practically at their
own prices The bond market has been in con-
gested position for more than year, but the
prospects for bond brokers promising
than they when financial and business
conditions appeared to be in no danger of a set
back and when quotations were at a level that.
according to the ordinary way of figuring. re-
:ected a small supply of investments and a big
demand Trade reaction will release a large
a-13UpJ Of money that viii find its way into the
503Ia market