New-York tribune., 1907-12-06
sCnliste3.
Closing prices Of active bonds dealt IN WITH
STOCK MARKET OPERATIONS.

substantial Improvement was recorded III
stock market values yesterday under the m
auence of active covering of shorts and opera
tions on the long side of speculation by some
of the more important commission houses. Bear
traders who were active in the first hour Of bust
ness in efforts to bring about lower prices were
both puzzled and frightened over the support
that appeared in most parts OF the hSt' anu
before the midday dealings they were DUSTY
engaged IN retracing their steps TO the accom-
nan;rnent of rapidly advancing quotations. The
earIv selling was encoura ged by the information
trat the leading bank in Kansas CITY WCuid
close its doors, but soon after the announcement
of the suspension Of that institution buying or
ders came into the market from various sources
in volume large enough TO cause a sudden change
IN the tendency Of prices, and with only minor
Interruptions the movement continued Tor the
hest mart Of the rest Of the day nnal nguTeS
showing long list of net gains IN many cases
from l point TO points. There was gooo
evidence that in some parts OF the list STOCKS
were actively disposed Of under the cover OF tne
bidding up process In other issues, and thoush
there undoubtedly was better buying than re-
Gently reported the general character CT dealings
was highly professional and contained no DIS
tiuctiye sign that the advance would run on tor
weeks TO come, as many spectators apparently
believed Some OF the most active houses that
helped the rally early in the week put out
large amount of stock at the high points yester-
day. and certain experienced operators VINO gave
support 70 the market In tne IsCeHl ISSSioh
admitted that they were not following the rally
and that it was proceeding altogether too fast
for safety The Hill and Hartman shares again
were active strong features; also st. Paul,
Northwest and Missouri Pacific. the last named
closing at a net gain of ga points. The copper
shares were heavy, being sold In expectation OK
q further cut in dividends,
Improvement in monetary conditions at this
centre is reflected in easier rates for call loans,
in lower premium on currency, in q large gam
by the local banks on their operations with the
Sub-Treasury so far in the current week and
by more confident feeling among the advocates
of higher prices on the Stock Exchange Better
conditions here are accompanied by stronger
situation abroad, as Indicated by lower mc ney
rates in the London open market and by the
weekly return of the Bank of England which
shows an increase in resources large enough to
Mace the proportion of reserve to liabilities
a level only a trihe under the average of this
time in the last seven years. Since last Thurs
day the reserve has increased than per
cent and now stands at 44.02. which. for this
period Of the year, when there always are ex-
traordinary demands in connection with the hol-
tdav season. is extremely satisfactory and doubt
less foreshadows reduction in the discount rate
in the near future. probably next Thursday In
terror banks are still drawing money from this
centre as reported in the transfers for city
banks by the Sub Treasury. and it Is not un
likely the bank failure at Kansas City will be
effective In accentuating this movement but the
increased supplies Of cash at this point, due to
gold imports and the return of boarded funds
10 the fiscal institutions, encourage the belief
that the interior drain will not check the i'm
provement that is now under way. Develop
ments in the financial situation outside New
York however will be well worth watching,
particularly in view of the collapse of the Kan
sas City institution, which one of the larg-
est banks west Of the Mississippi River The
troubles of this bank have been known in the
East for several weeks, and II is believed here
that affiliated concerns IN the West have been
able TO strengthen their position to an extent
that will minimize the effect of the failure.
OF the banking interests in the Street who
are anxious to see higher quotations in the stock
market few are in financial position to extend
much support TO prices. but from the course OF
the speculation in the last three days 1t appears
that the shorts have become extremely uneasy
IN the belief that the great banking powers that
came to the rescue of the market at time when
insolvency confronted large number of houses
are actively engaged In campaign for better
quotations. Reports that the Morgan interests
were under the market were freely circulated
yesterday. and, of course, the mere idea that
Mr. Morgan and his friends were working with
the bulls naturally frightened the ordinary shorts
into q quick retreat that resulted in one of the
sharlJest advances witnessed the Stock E,x-
change in recent weeks. The bull element
appears intent in rounding out the year with
good showing. but the fact remains, nevertheless.
that general conditions do not warrant such
movement The power Of q few men may bring
about the elimination of the short interest. but
il so far has not been effective in attracting
genuine public following. though the latter