New-York tribune., 1907-01-22
Closing prices of active bonds dealt in, with
STOCK MARKET OPERATIONS.

Following a strong opening and decline IN
which stocks more than lost their early gains. a
rapid and general recovery set in in the last
hour, and prices closed. a rule. at net ad-
vances for the day Of to points. The rally
which set in near the close on Saturday. having
as its cause heavy covering Of shorts on the
,er-, encouraging bank statement. continued
during the early trading yesterday. London sent
in a decidedly higher range Of prices for Amer
leans and the opening in this market was at ao-
vances ranging from one-half point TO ? points
"a compared with Saturdays final figures. The
market held reasonably firm during the morning
hours although the highest prices reached were
not much above the opening level; but IN the
early afternoon a declining tendency became
evident due to the unsatisfactory way in whlch
the stock taken last week for supporting the
market was being absorbed and to the absence
of any indication Of good buying. The pears Ie-
sumed operations, and with Interborough-Met-
ropolitan and Brooklyn Rapid Transit as the
principal objects of attack, on rumors OF the IN
,ention of the Governor TO take measures con-
srued as likely to prove prejudicial TO the local
fractions and a report that the Interborough-
,Ia,ronolitan preferred stock dividend was to be
nassad the whole list declined The rumor OF
the proiected passing of the preferred dividend
il can he said on authority IS without founda-
tion. There were during the day the rumors'
familiar of late of the embarrassment OF some
firm. but when in the last hour IT was found
that all Of the clearing house sheets hao oeen
.ssed there v,as a rush to buy stocks, with the
shorts the chief purchasers, and a rapid recoV-
cry occurred prices continuing TO rise up TO the
,,erv close which was at substantial net gains
for virtually all issues. on this rally there was
further distribution of stocks bought last week
- rrotaot the market The trading was heavy
I eh9 y
almost the close came the announcement that
the southern Railway Company had sold to }.
p Morgan & Co S15OO0.OO0 of three-year per
cont notes a transaction the market effect OF
which had been discounted as il had been COM
roonIv assumed that the circular of President
Finley. calling attention to the urgent need OF
betterment of the Southerns physical condition
and increase of its equipment, would be speed
ilv followed by notice Of an arrangement for
obtaining the required funds to an amount vari-
ously estimated at $15OO0O0O to S25OO0OO0
call money declined to 2 per cent, the lowest
level for a year or more. the rate ranging be-
tween that, figure and 3A per cent. Time money
also was easier, bids for sixty and ninety days
being reduced TO per cent and loans for five
and six months being made at 512 per cent. The
banks are still gaining cash. although the inflow
since Friday has not been as large as In the cor
responding period a week ago. One effect OF
| the, reduction of the rate for call money has
been the recall of funds loaned in this market
by institutions the interior these loans. there
fore, having to be taken over by the local banks,
a movement which in conjunction with the
shifting of loans from Europe may explain the
big increase in the loan item in Saturdays bank
statement In the face of the extensive stock
market liquidation of last week While the
money situation is constantly improving. it Is
| nevertheless difficult to see how conditions can
for the present justify a resumption of opera
tions for the rise I'm the stock market, for the
necessities of the railways are so large that
money market ease for the present can be only
/ temporary.