New-York tribune., 1907-11-17
enlisted
CIosing prices Of aetive bonds dealt in. VIA
STOCK MARKET OPERATIONS.

01OCh mARhE1 OPEHAIlUNS.
Stock market values, after early irregularity
advanced in the last half hour of business under
the influence Of covering of shorts and
support from substantial sources, the latter
being specially marked in the United States
Steel shares, Reading, Union Pacific. Canadian
Pacific and Amalgamated Copper. Final prices
in the greater number of issues showed net
gains. the chief exceptions being Atchson, Erie
Illinois Central and Missouri. Kansas & Texas
Expectation Of government relief to the money
market through issue Of Panama bonds and
the belief that the bank statement WOULD make
a favorable showing in comparison with the
hibits Of the last two preceding returns vera
responsible for the improvement in speculative
sentiment. though far the movement OF
values concerned technical conditions
probably had more to 90 with the advance than
other considerations. The Clearing House fig
ures showed changes no greater than those re-
corded in normal times, and while there was
a further decrease in cash and reserve the loss
was SO small that the statement, in view Of re-
cent big declines in holdings, was considered
unusually promising and suggested to most
minds the probability of actual Improvement in
resources in the current week. Cash decreased
S1,135, 800, against loss in the two preceding
weeks of $50 914 800: loans increased S4694 900
against increase in the two preceding weeks
of 400 and the deficit In reserve in
creased 81, 742, ,325, to $J3 6G6 $50 compared with
a deficit in the week before of sol 924 G2J De-
posits increased S. .425, 200. The total cash
holdings Of the banks of the Clearing House
Association stand at $21S. .659000 against $3.50
991 500 at this time year ago and S252, 2,400
in 1868 At this time last year the reserve above
| legal requirements was S2.3ll, go. The reserve
is being used for emergency purposes. and the
fact that there is a big deficit under the - per
cent level IS no reason for nervous prostraton
in the financial community.
Acute monetary stringenCy has extended its
| adverse effects TO mercantile circles throughout
| the United States as reflected in a slowing down
among manufacturing plants in the reduction
| Of working forces, in the curtailment Of the
movement Of merchandise from first to second
| hands and in a material falling off in bank
| clearings, which in the last week has amounted
| to 32 per cent. compared with the corre-
spending period IN the preceding year. The In
ability to secure credit and the difficulty in OBJ
| tanning currency to pay labor have developed
| adverse conditions in the commercial world
| rather than a falling off in the demand for
| consumption. Recent years Of enormous gold
/ production resulted in high commodity prices
| and overextension Of credit and the situa-
tIon thus created has suddenly been brought up
I against a paralysis of credit due III great
| part TO the boarding Of funds and loss Of con-
| fdence on the part Of the people as result OF
| the methods Of high finance" and corporation
graft If the people would return their money
| to the banks, where it belongs. there would be
| instant response on the part Of the coun-
trys credit facilities that would tend to relieve
| conditions al once. but if money continues to be
! boarded and senseess fear spreads throughout
| the land trouble in the business world will ex-
/ tend in spite Of strong underlying factors. 1t Is
believed, however, in financial quarters that the
country large soon will realize that the hoard
| ing OF funds is absolutely unwarranted, that
| checks are as good cash, and that sensible
cooperation viii be followed by readjustment
| that will encourage a resumption Of Industrial
| activity a safer and stronger basis than
ever before recorded The reported intention
! of the government to issue SJ00O00OO Panama
| bonds will If carried out, materially help none
| tary conditions. the bonds will be bought by
| national banks, the purchase money will be left
| in the banks and the securities Will serve as
| the basis for additional circulation. Most bank
| ers believe that in the course Of a few months
| there will be a plethora of funds in the banks
! the natural consequence OF which viii be BUY
| ing of stocks and bonds ana hlgher quotations
for all securities.
Stocks generally move in advance OF probable
Developments and it therefore is reasonable to
believe, in view Of the great decline that already
has taken place in values, quotations on the
Stock Exchange win be moving in an upward di-
rection long before the public begins TO realize
the country IS not going to pieces Quotations
are lower than known in many years, leading
active railroad shares closing the week at an
average price of about 80, a drop of points In
a MONTH while in the industrials the chief stocks
showed an average price of SO, against co on the
same date in October. It requires only a quick
glance at the general list of securities to see
that in the event Of lower dividends quotations
are at bargain level for investors, and in ana
Iyzing dividend distributions of the last two
years 1t should be borne in mind that among the
solid investment issues the companies represent
ed showed in earnings a large margin Of safety
above the actual amounts paid to stockholders
In the interests of conservatism some companies
may lower their rates, but investors need not
imagine they in for a long period Of small
returns or no returns at all, as in the depressed
times Of 1898 and a few succeeding years when
general conditions were so weak that large
proportion of the railroads in the country were
forced into receivers hands. st. Paul. which is
now one Of the weakest of the railroad stocks,
appears to be suffering because the company no
longer makes monthly statements OF earnings
and because of doubt over its ability TO pay the
current per cent dividend rate on the increased
capitalization, Of which 600 is due from
stockholders on December l. The secretiVe pol
ICY of the St Paul company regarding its earn
ings is not liked in Wall Street, and the stock
doubtless will continue under pressure until 1t
IS known what the earnings viii show on the
$l33 100000 capital stock now outstanding and
the 800 000 900 OF stock which It has In process
OF issue. Most securities ended the week at