New-York tribune., 1907-01-03

Transa ctions In yesterdays stock market were
light in volume on a movement OF values that
presented great irregularity though showing
more net advances than losses at the close The
final tendency, however in the direction OF
lower figures. all the active issues ending well
under the best prices of the day and in some
net declines were recorded, notably In
Union Pacific ST. Paul and Reading The last
named stock closed III points under It's early
high level. while Union Pacific showed a decline
of similar proportion. Atchison a strong
feature; also Baltimore G. Ohio, Canadian Pa
cifc, New York Central Dstillers' Securities
and Delaware & Hudson, but where strength
reported there was no indication OF outside
support dealings being made up in great part
of board room operations The public had 20
pay from II TO II per cent in December TO It's
brokers for having its accounts carried and,
bearing this fact In mind, 1t readily may be
realized why outside participation in the stock
market was not popular in the last month of the
year why much liquidation was recorded
and why there is at the present time no disposi-
ton on the part of the public to re-enter the
market. Money yesterday did not go az high
as it did in the first day of 1906. when 60
per cent call rate was established, but II was
firm enough to discourage activity on the part
Of commission house traders. Total dealings
We're less than 100000 shares. compared with
more than 100000 shares on the corresponding
day year ago. The approaching investigation
of the Union Pacific by the Interstate Commerce
Commission served to create some uneasness
among holders of Union Pacific stock and was
responsible for bear pressure the issue.
The greater number Of loans in the call de-
partment of the money market were made at
from 10 10 20 per cent yesterday, but Wall
Street did not consider the prevailing rate an
indication of exorbitant quotations in the next
few months. Indeed, in well informed banking
circles the opinion that money would reach a
lower level before the end of the week was freely
admitted, this idea being based on the belief that
the January interest and dividend disbursements
would be redepOsited In the banks before Fri
day and that money would begin to come to
this centre in some volume from out of town
points Doubtless currency will move to New
York in January and February. but the chances
are that the movement will not be heavy as
the outgo from here last fall for the good reason
that money is extremely active in the channels
of trade in all parts Of the country and cannot
be spared in large amounts for shipment to the
East, despite the attractive rates prevailing in
the local loan market. The general loan situa-
ton, however, has been improved through the
heavy liquidation that reported in securities
in December. and If Congress should pass an
elastic currency measure at the current session
the money market in all parts OF the country
would be benefited to an extent that would un-
doubtedIy make impossible future acute strin-
gency at the chief financial centres. while IL
would also serve to re-estabsh normal condi-
tions in the foreign exchange market. This is
the period Of the year when gold generally leaves
these shores for European centres but under
present conditions there is more chance OF gold
imports than gold exports. though a movement
in either direction is not considered probable at
present.
Foreign exchange rates were higher yesterday
and they will advance further just as soon as
money becomes easier here. and IL sAe currency
measure is enacted this country doubtless will
be called upon 10 send to Europe some Of the
precious metal which 1t secured abroad last
year There many uncertainties In the
money market at the opening OF 1907. and 1t
may not be safe for stock market operators to
go ahead at a furious bull pace on the theory
that IL is matter Of short time only when
there will be easy money In New York. Money
is tight the world over due in great part to
unprecedented business expansion, and as long
as this tendency in industrial circles continues
there viii he plethora of lendable funds
Fortunately the federal Treasury OF this coun-
try is in an exceedingly strong position, and the
business community may assured that
while Secretary Shaw is at the head of the
Treasury Department every effort will be made
to replace in the channels OF trade money with
drawn from those channels on customs and in
ternal revenue whenever the business situation !
needs a5siat9nce Of this character. And after
M. Shaw retires on March | Mr. Cortelyou .
doubtless will continue the same policy, par
tcuarly as Il is the policy OF the President
van Street as a whole believes that prices of
securities VIII enjoy Improvement in the course |
Of the next fe" weeks. 1t is contended that |
quotations are far under the best figures re-
corded in the last year. that liquidation has
eliminated many dangerous accounts and that |
the more important speculative interests ara |
preparing TO lift rrtces to level that will af-
ford them good opportunity TO dispose of their I
holdings If the public shows no more enthu- |
siasm toward stocks in 1907 than It did in 1906 |
the larger interests may find themselves unable
10 distribute their securities an contemplated