New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-03
Enlisted
Closing prices of active bonds dealt in, with
STOCK MARKET OPERATIONS.


Various factors contributed to the contraction
In dealings as compared with recent relatively.
large totals and 10 the heavy tendency which
developed in prices in the opening trading The
initial declines We're offset to some extent in
the later operations. but at the close the greater
number of issues were under the final figures
OF the preceding day, the downward movement
representing little beyond traders transactions
Lower prices on the London Exchange indica-
tons OF renewal Of the demand for gold nm
favorable government percentage estimates Of
cotton crop conditions and uneasness over the
reports Of a concentration OF the country's
battleShip force in the Pacific discouraged oper-
atoms for higher prices while they encouraged
selling by the professional element. the latter
however, falling to bring out any important
holdings Of long stock. The general technical
position of the market warranted a reaction and
experienced traders attached significance TO
the factors just mentioned as far as permanent
influence on prices was concerned Net declines,
rule, We're confined to fractions, the chief
exceptions being supplied by American Smelt-
ing. Canadian Pacific, Atchison St. Paul. Great
Northern Northern Pacific. Southern Pacific and
Union Pacific. in which losses for the day
amounted to moro than | point. Call money was
strong, bat not high IS recorded in Non
days market. Sterling exchange in spite of
strength in the money market. moved up, and
its rise, together with decline in the Paris
check on London. suggested the possibility Of
the resumption of gold exports to the French
fected in an engagement Of $10G00D0 gold coin
for Holland.
So far in the current week the local banks
have gained from the Sub-Treasury upward of
81 10000 compared with a loss of more than
81 900 600 at this time a week ago, and from
present indicat tons the general movement Of
money in the next few days will favor an in
crease IN reserve holdings in SATURDAYS bank
statement The government began yesterday
the redemption Of the short Is. This operation,
which involves about $36GW00. doubtless will
cover a considerable period, if 1t works out &C
cording 70 precedent but It will serve gradually
to increase cash in the banks. as most holders
Of the issue win request payment in checks on
the New York Sub-Trelsury, deposit!ng them
with city banks or bankers. Repayment
of he $30OG0G00 government money deposited
with banks throughout tla country last fan IS
proceeding "a pidly and must he completed be-
fore JuIv 10 but this amount will be more than
Offset by Treasury redemption Of the govern
rrent bonds. and as far as New York is con-
cerned its proportion OF the deposits IN great
part already has been turned over to the Treas
urv while the securities released have not come
on the market The impression prevails in
some quarters that the withdrawal Of govern
ment deposits brings into The market all the
securities pledged against this money This Is
wholly erroneous idea, as the greater number
of the securities 'supplied by the national de-
positaries to the government for the federal
funds are the properly Of savings banks, and
have been borrowed from the latter to whom
are withdrawn. It may be recalled that bonds
arnroyed under the laws of the states of New
York and Massachusetts for savings banks m
vestn1ent were accepted by the Secretary OF the
Treasury to secure government deposits and
deposttarv banks therefore borrowed from the
sayings institutions such securities, a reflection
of which is contained in the item of borrowed
bonds in the statement Of the banks OF the CITY
fropl last September 20 January l9Dt' Whlch
showed an increase of more than S}3'oOo'oto
Bonds borrowed for this purpose are held as
permanent investments by the lenders.
July circulars Of the leading bond houses pre-
sent an interesting list Of attractive securities
for investment al figures that return TO the
buyer an income larger than one ordinarily can
e,nect one house for instance, offers the
bonds of sixteen railroads. and OF this
number ten show better yield than they did at
the low prices in the market Of 1903 while six
are slightly under the amount that could he
obtained at that time. And in every case
but one there has been a big increase in the
ratio of net income to charges. II is the opinion
Of the best informed bankers that good secu-
rites offer an exceptional opportunity for lin
vcstmcnt particularly in most cases the
Weld is higher than the average rate for money
in the last ten years, while the properties rep !
resented are in a stronger physical and fnan-
cial condition to-day than ever before in their
history. Take an example Chicago, Rock
Island &, Pacific refundng mortgage is. At the !
low price of the issue in 1893 II returned 4.24
compared with yield at present of 1856, and
since the low price Of 1903 the company's ratio
Of net income has increased 10 per cent. Lake
Shores twenty-five year gold As in 1903 sold on
a basis that yielded 40. against 4.6l in the /
current market. II is possible 10 give an
tended list of instances OF this kind and any one
who takes the trouble TO examine the position .
of the investment market will find ample argu-
merit for the purchase OF securities at prevailing
prices.