New-York tribune., 1907-06-22
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Trading in stocks was without life in the five
hours of business. transaction. amounting to
only 211,269 shares in all issues on a move
ment Of values that show great lrreguarity.
with more net losses than gains at the close.
There were a number of important develop
ments in the day, however that attracted the
attention of the Street, notably the engagement
Of gold for London and announcement of
large st. Louis and san Francisco bond issue.
The management Of the Frisco has decided
wisely not to put out notes to meet current
needs 1t believes that irrespective of the poor
condition of the bond market it VIII be better
for the company in the long TO provide for
all future requirements at once in the form OF
large issue of bonds, amounting 10 S115.000,00O.
rather than to adopt the temporary expedent OF
borrowing money on short term notes. In con-
servative banking circles this operation is in
dorsed as eminently practicable and in line
with sound financing. OF the issue only $40
100000 will be put out In the current year,
while more than $61,O00,O00 will be reserved to
retire underlying securities, and the transac-
ton, therefore, will not add materially TO the
amount of bonds in the already ClOggcd bond
market. The ST. Louis and San Francisco has
a wide field filed with great opportunities and
possibilities. The traffic in the Southwest is
increasing, the country is growing beyond its
railroad mileage and facilities, and conse-
quence the Frisco system believes in raising
funds TO be IN a position to handle this
expanding business The Rock Island owns the
Frisco, and it Is the policy of the Rock Island
10 spend money its properties 10 get
big results. 1t is not in the market for funds
with which 10 bay other roads. II wants money
for its own expansion and IL will get il. Anal
gamated Copper Pennsylvania. Union Pacific,
Reading and United States Steel common were
the only stocks in which there was any indica-
tton of activity and even in these issues deal
ings were unimpoTtant. Mr.. VanderIips speech
at jamestown considered conservatively
bullish, but il without effect upon values.
Gold 10 the amount Of $1,000 600 taken for
export, and despite the engagement sterling
rates were strong. Money was firm, bat not
materially changed from the level of the pre-
ceding day.
Receipts Of currency from the interior this
week have offset to only a small extent the loss
suffered by the banks on gold exports, and
less there has been q considerable reduction in
loans, the reserve above legal requirements in
to-day's statement ought to show a heavy de-
cline from last Saturdays figures. The contrac-
ton in reserve last week brought that item 10
the lowest point for this season in many years,
but this movement does not, however, warrant
the assumption that the banks are hard up or
that they have not enough cash on hand 10 meet
all the legitimate requirements Of borrowers.
The big deposits Of the Clearing House institu-
favors higher price for money over the end Of
the month and easier conditions in the greater
part Of the balance Of the summer large
amount of funds will be disburse0 by the Treas
ury in the first week in July in payment of the
maturing government 1 per cent bonds while
the movement Of currency from the interior
doubtless will be heavy enough to bring about
a material increase in cash and reserve holdings
of the local financial institutions Gold exports
are not expected 10 run beyond the end of the
fiscal year. The shipments OF the precious metal
TO Europe viii serve 20 es-absh money rates
abroad easier basis. which in turn will
encourage the issuance Of finance bills by for
eign bankers at this centre and make possible
the financing of the harvests with foreign cap
ital the latter operation TO be covered later in
the season by our own grain and cotton bills.
The general fu'rre of the money market ap-
pears to contain nothing upon which uneasiness
may be based and the SANE thing also may be
said of the business outlook
Reports received yesterday from the CONNER
cial agencies show no weak spots in the various
lines Of industry. The crops improving
under the influence of seasOnable weather re-
tail trade is more active and the demand for
future delivery indicates no lack of confidence
among buyers in the belief that business pros
perity will be maintained. Many people who
have lost money in the stock market and whose
position becomes weaker with each successive
drop in values make themselves believe that
the country is going TO the dogs. accept
ing the course Of securities prices as a bet
ter guide to outside affairs than big rail-
road earnings, heavy bank cIearings. active
orders from the transportation companies
for rails and general supplies for periods
far ahead, large dividends by the banks and evil
dence Of financial strength among the corpora
tions in general Business mortality IS light.
Failures in most are due TO poor man
agement rather than TO fundamental conditions.
Some concerns are oVerreaching themselves do
! ing business on an elaborate scale without suf-
icient working capital, but in the majority of
instances expansion is being conducted on a
reasonable basis. If business was less active
there would be a greater demand for bonds
which at the moment practically dead.
Money is so active in the channels of trade that
there IS none left over for investment in mort
gage issues, but after the big July interest and
dividend distributions have been made there
may be some improvement, owing to the rein
vestment OF income returns. New York bank
crs who are carrying heavy amounts of notes
issued by the railroads find little demand for
them throughout the country. and the chances
are the Eastern fnanciers will be compelled to
keep Their wares for long time to come de-
spite the undisputed value ard attractive prices
OF the issues.