New-York tribune., 1907-07-18

STOCK MARKET OPERATIONS.

Early operations in yesterdays stock market
generally were on the buying side. United
states Steel common being the only important
exception TO the upward movement. but in the
afternoon dealings selling pressure developed
and the entire list eased off. closing with net
losses in the greater number of issues. Evi-
dence of aggressive manipulation in Union Pa
cifc caused an unfavorable impression on specu-
lative sentiment, while the failure of oldtime
commission firm also was a factor in swinging
the professional element to the bear side OF the
market, transactions for this account being
especially heavy in United States Steel. ST.
Paul. Amalgamated Copper. Southern Pacific
and Union Pacific. the last named issue falling
two points from its high price of the morning,
at lao. No explanation Of the selling in Steel
common was offered but the chances the
decline represented sales by dealers who
bought the stock lower down and believed
that even in the event of increase in the
dividend the price would not go much higher
The directors of the corporation meet at the
end or the current month to take action on the
dividend. and in well informed quarters II Is
not believed there Will be any change from the
quarterly one-half of l per cent There
noted in the day. particularly in the forenoon
quiet distribution Of stocks under cover OF tho
strength in various issues. and knowledge that
this of selling going was responsible
while the absence of a genuine public demand
also served to discourage the idea that old
fashioned bull market under way. Closing
prices about the poorest.
Preparations to finance the harVests OF the
current year will begin soon, but in the mean
time call money doubtless Will rule at rela-
lively easy level. There is not. however. any
chance of a reduction in the quotations for time
funds while there are various good reasons Tor
the theory that at no remote period the price OF
will he ad O a
higher level. The banks at the moment have
enough money on hand 10 supply the require
ments Of stock market spectators at reasonable
figures. but just soon as the inquiry from the
interior develops there will be change in the
call money situation to an extent that will In
tcrfere seriously with the plans Of operators
who are working for higher quotations on the
Stock Exchange, and which doubtless will carry
rates for this sort OF accommodation TO level
that will suggest to the Secretary OF the Treas
ury the placement OF government funds in the
channels Of trade. especially as 1t doubtless Will
De round Impossible TO bring gold from Europe
10 thlS centre 1t Is not probable that Paris
will take arg more of the yellow metal from this
side OF the ocean, unless there should be a pro-
nounced change in the sterling market in which
quotations are now under the level at which
shipments of gold could be made at profit hut
the idea which was advanced in Wall Street
yesterday that Europe will send the metal TO
this country in the fall does not appear to be
We'll founded. notwithstanding the fact that
an import movement in the autumn is a nor
NAL operation. The balance Of trade is not
running heavily in favor of the United States
owing to the large increase in imports Of mer-
chandise, and whatever excess there is for our
account is offset by the undervaluation of inn
ports, by the expenses OF American travellers
abroad. by borrowing by financiers in Eu-
rope and by the interest and dividend pay
ments that American corporations have to make
TO the foreign holders of their securities
1t is said in well informed Wall Street quar-
ters that American bankers in Europe are
negotiating with foreign financial institutions
and individuals TO assist in financing the nece5-
stiles of our railroads. The outcome Of these
plans will be awaited with unusual interest,
owing To the present congested condition of the
securities markets and to the situation in money
abroad, which in many respects is similar to that
prevailing here. There is little probe bility of
the development Of buying power in this coun-
try sufficiently heavy to absorb proposed
securities issues until the amount of capital In
the United States increases. In view OF the
fact that tho market already is glutted with Sc
cUrities which have been put out in the last six
months conditions would be improved by a
cation Of operations on the part OF the securities
MILL unless corporations that need money re-
ccive the promise OF foreign assistance The
current stock market is made up to a great
tent OF the operations in Union Pacific. and 1t ls
quito evident that the syndicate which under
took 10 finance the convertible bonds is deter
mined TO advance the stock to a price at which
the bonds may be converted. There is market
for the stock, but none for the bonds. and by
pushing the stock TO the conversion price the
syndicate would find a way to get out Of its
holdings. Apparently the Union Pacific people
are the only important interests that work.
ing on the bull side of speculation at the
ment