New-York tribune., 1907-11-21
STOCK MARKET OPERATIONS.

In the early dealings in yesterdays STOCK
market prices generally were firm with an ad-
vancine tendency based on covering operations
and some support from substantial lhteres'S'
but the lack of active commission mousse nuE4hs
and the apparent unwillingness of the banks 10
extend accommodation, except at higher rates
caused a general recession in the afternoon III
the course of which initial improvement was lost
in most issues while in number OF shares
declines amounted to more than ! point At
lantic Coast Line and Louisville NashVlue
were especially weak under the influence OF sell
ING r,ressl1re attracted by the decision OF the
directors of the Atlantic Coast Line Company TO
defer action on the dividend and on the eXpec-
tation that Louisville & Nashville directors
might follow the same course owing TO the un-
certainty regarding the financial situation ana
the possibility of a heavy reduction IN rallrodd
earnings St. Paul again weak feature.
selling as low as 9324 new low record for the
year and 1O57s points under the high quotation
of 1906. II is understood several large loans in
which st. Paul figured as collateral! have beeh
closed out in the last few days. and that inter
ests identified with the property have been COM
PEELED to part with the issue at sacrifice prices.
while traders have sold the stock on the oelleI
that the directors of the company Will in view OF
the changed conditions in the financial and m
dustrial world ard the large obligations as
suned by the company in connection with the
extension of the road to the Pacific Coast re-
duce the dividend at the next dividend period.
St Paul New York Central and American
Smelling and Refining are among the companies
the dividends of which are II IS thought, slated
for lower levels, but the market value Of these
securities already is at level that more than
discounts lighter dividends. This fact now
ever, does not preclude the possibility of a fur
ther decline in their quotations. 1t Is asserted
by the best informed brokers in the Street that
additional liquidation Will take place before
there can be any permanent Improvement in Sc
curities values. At the close the general mar
ket was depressed, the only buying coming from
-l114
and who reported the room fun Of stocks. High
grade issues again were the chief sufferers on
the afternoon decline. and In the case of St.
Paul the difficulty Of securing cash for the De
cember instalment on the new stock was an in
fuence Of some consequence. Call money ad-
vanced to 10 per cent, while the premium
currency was stronger, these two factors con-
tributing to the pessimistic feeling in specula
tive quarters IN the last hour of business Bonds
were weak but there some support in the
Rock Island As in which further liquidation was
reported. The Rock Island is in good condi-
ton, and selling of its securities represents in
dividual necessities rather than any intrinsic
Weak akness in the company's financial position.
The foreign markets weak and sentiment
abroad was depressed over further gold with
drawals for New York account
In their operations with the Sub-Treasury
the local banks have lost far in the current
week more than $6.000.OOO, while direct ship
ments of currency to the interior have been
heavy but the chances the loss both
counts has been Offset by receipts Of gold from
abroad, and as far as bank reserves con-
cerned by a contraction in loans. While
loans doubtless have been moderately heavy, it
is known there has been a substantial liquida-
tion of old accounts. reflection Of which is
presented in Stock Exchange transactions, and
if the movement continues the remainder of the
week Saturdays bank statement ought to make
a far better exhibit than that reported last
week and in the week before The necessity
Of in IOa n is shown the wide Diff
ference between that item and deposits, the lat
ter being upward of S1O0,OOO,OOO below the
level of the first named which, Of course, sug-
gests abnormal conditions that under present
factors governing financial affairs can be read
justed only by further liquidation. Later on
there may be oversupply Of credit. but at
the moment present conditions have to be con-
sidered rather than what may happen
when trade reaction, gold imports and govern
ment relief measures bring about a plethora Of
the circulating medium.
With gold imports deposits of government
funds in national banks and new banknote cir
cuiation credit facilities naturally will expand
Some people are therefore worrying because
they believe we soon TO enter a period
of imitation a result of the big prospective
increase in the amount of money in the
try. II should be borne in mind however, that
just soon money begins to accumulate in
the banks in large supply, the Secretary of the
Treasury will withdraw government deposits in
order TO strengthen the Treasury's cash ball
ance. Moreover. Congress doubtless will amend
the law that banknotes be retired in
greater volume in given time than at present.
1t also should be borne in mind that the pro-
posed government certificates of Indebtedness
will run for one year only. when they will be
called in. The danger of imitation is remote but
the fact that the government has been COM
PEELED 10 adopt extraordinary measures ought
10 Impress upon the minds of our legislators the
urgent need of currency laws that will make
impossible the constantly recurring periods of
stringency in the money market