New-York tribune., 1907-08-27
STOCK MARKET OPERATIONS.

Following fractional advance at the opening
on the higher range of prices reported from
London stocks on the local exchange soon oe-
gan TO yield under the lead Of New York Cen
trail against which especial pressure was ex-
erted and which before the end of the first hour
had fallen to 995L. its lowest on the present
movement When It found that the sheets
OF all houses had gone through the clearing
house however, the bears began TO cover thelr
short contracts and a moderate rally occurred
the market relapsing then into dulness In the
afternoon strength developed, none Oh the pre-
dictions of failures having been made good, ana
the report finding credence in excellent quar-
tiers that the house OF J. P. Morgan & Co. had
undertaken the formation of strong syndicate
for bidding for the s40,o0o,00o of bonds about TO
be issued by the city. The trading was IN re-
stricted volume during the day. but the Market
closed strong with net gains for the day run
ming 70 olI points in Reading, rs in Union
Pacific. IL in Southern Pacific. "a In Northern
Pacific, 1k IN Great Northern, in Amaisa-
mated Copper. IL in St Paul, 2.s In American
Smelling and Refining, e in Atchison and IN
Erie first prefer d. New York Central recoV-
cred TO 1O2 q per cent above Saturdays last
price The local traction stocks participated IN
the general Improvement, all closing at net ao-
yances except Third Avenue which fell to 90
fits lowest since the break several years ago on
which the property was gathered into the Met
ropolitan system, and closed at oZ12, d net iosS
of Az points its weakness representing the
fears of holders that in the coming feauJuS'-
borough metropolitan merger their dividends
would be cut off.
The Street full Of rumors in the morning
hours of impending failures, bond houses IMAM
cial institutions and private firms being men
Toned and there may be some foundation for
the report that one house helped out or
threatened difficulties, but the rumors were so
plentiful and so indiscriminate as TO create the
impression that most Of them were OF pear
origin and they therefore had virtually no mar
rre+ s7 fba trading. IN WhlCn
short covering was itself the chief factor In the
advance.
The good impression caused by the announce
rYaent last week by the Secretary of the Treas-
ury of his plan for easing the money stringency
this fall by weekly deposits of government funds
during the period of expected greatest strain
had continuing influence yesterday, as under
that plan the banks, which have now in hand
q surplus reserve larger than held by them at
this date for many years, will be in large meas
ure relieved of the burden Of providing crop
moving money and will be to the same extent IN
better position to finance the needs OF their
mercantile customers. The negotiations un-
derstood 10 have been begun by the Morgan
house for organizing syndicate to bid for the
city's new bond issue it is thought, might not
have been undertaken If the financial outlook
Yesterday had been that of a week ago, and this
action was regarded IN itself an augury OF
slowly increasing ease In the money market
The effect of the success Of that syndicate bid
could not fail to be beneficial to the bond mar
ket as Il would insure permanency of price for
the new Az per cent bonds and would strengthen
also the As: and the prospect of a large amount
of the new securities being placed abroad was
a steadying influence in the stock market as in
dicating an enlargement of American credits at
the foreign financial centres The foreign ex-
change market weak yesterday. demand
sterling rates declining fifteen points and stand
ing now about seventy-five points lower than a
week ago and far below the gold export level.