New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-06-12
AZ niisted
Closing prices of active bonds dealt in, with
OPERATIONS IN STOCKS.

OPERATIONS IN STOCKS.
Reports that banking house was in trouble,
accompanied by selling that had all the signs Of
forced liquidation, We're responsible for acute
weakness in the last hours Of business on
the stock Exchange. In the early dealings the
tendency as a rule was in the direction of lower
prices. but the declines were unimportant while
the volume OF trading was exceedingly light.
representing little beyond the operations of the
room element. Traders took advantage of the
rumors affecting a BANKING house to hammer
the entire market, and they also used with
some effect the receivershp proceedings against
the Mken iron concern. while the veto of the
maximum passenger fare bill by Governor
Hughes failed TO affect favorably the course Of
prices. except for a brief period in New York
Central though it did exert a favorable i'm
preston on sentiment in banking and railroad
circles. There was little buying power in the
market, and traders had difficulty in lowering
quotations, especially in Amalgamated Copper,
American Smelling, St. Paul Northern Pacific.
Reading, Southern Pacific and Union Pacific
The Hartman shares were the weakest features
of the day and were sold down in manner
that indicated lack of interest for the time
being in their prices by the larger specula-
tors, though 1t understood that on the
decline there further buying by Morgan
people. who recently have accumulated q large
amount OF Union Pacific. Near the close of
business the Stock Exchange learned that war
with Japan imminent. but this idea was
merely in line with the large crop Of foolish
stories that served to create amusement in well
informed quarters and alarm in circles where
brains were inactive.
Interest and dividend disbursements that will
be made July and on other days in the month
will amount 10 about S175.000O00 the largest
sum for this purpose ever reported at July
interest period. Preparations for the meeting
OF these payments soon will begin and the
chances are money viii rule at frmer level
in the near future owing to the accumulation
Of funds that must be made to handle the large
disbursements but II IS not believed there will
be any disturbance in the market. Bank re-
serves are not heavy this situation. however,
being offset in great measure by the absence of
an active speculative demand for accommoda-
ton, and the fact that the reserve above legal
requirements shows only a small margin beyond
the % per cent point need not be taken as a
sign Of approaching trouble in the position Of
the money institutions. The banks hold plenty
OF cash, and funds ought soon TO move to this
centre in volume from the interior. And then
there Will be an increase in the amount of
money in circulation at the end Of the current
month through the payment Of the maturine;
government bonds. # being understood the Sec
-'toii VI llt treasury VIII meet TINS obligation
in part from money in the federal vaults paying
the balance from deposits in national banks
The latter operation viii not take any money
out Of the channels Of trade while in redeeming
some Of the bonds from idle funds in the Treas
urY the money market viii be benefited to L
material extent 1t is not unlikely holders Of
government As Immediately viii reinvest the
proceeds from the redemption operation In other
good securities. while the chances are the gem
eral securities market will be helped bv rein,
vestment Of the heavy July interest and divi-
dend payments, particularly as prices for sound
investment issues are quoted at unusually
low figures
All high grade investment issues are selling
many points under the best prices Of the last
few years and yet the depreciation that has
taken place in their market worth has not been
accompanied by any reduction in their invest
ment value Indeed. in the majority of stocks
and bonds actual value is greater at present
than at any time in the history Of the country
The yield on first class investments at current
prices gives the buyer more than per cent in
the case of most railway stocks. more than
per cent in sound industrial preferred securities
and from 212 TO . per ceut in railroad mortgage
issues. The bond market is congested with new.
securities, but this does not warrant uneasinoe,
over the investment situation These securities
are being absorbed slowly, and in time there
VIII be as much of scarcity of good offerings
as there is now surplus. Some people thought
yesterday that the failure of the big Staten ISL
and iron concern reflected weakness among all
industrial corporations, but the troubles of the
Milliken company IN way represent general
conditions The MilliSens failed because OF in
sufficient working capital, because they endeay-
ored to expand too fast. because they bit off
more than they could chew. There is no indi-
cation in the general business world of weak
ness among corporations