New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-24
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
material falling off in the volume of bust
ness as compared with recent heavy daily deal
ings recorded in Yesterdays stock market
the greater part of tine operations representing
the transactions OF the board room element
Prices We're weak at the opening and in the
first hour but in the subsequent forenoon trad
ing the undertcne was firm. with the tendency
rule. in the direction Of higher level The
Improvement helped by the weakness in the
wheat market. where qotatons We're affected by
better reports from the agricultural section of
the country and by the absence Of liquidation,
which In the preceding days Of the week
such important factor in favor of the oper-
ators for the decline. The strong position of the
Bank Of England. as shown ley the weekly re-
turn Of that institution. and the improbability
Of gold exports in the future also We're in
huences that encouraged covering Of shorts. The
advance. however. was not pronounced I'm the
general list. owing to the dulness of trading
and in the last hour the failure of new buying
to develop induced renewed selling pressure
from the trading element, with the result of net
losses in the majority OF issues. Professional
efforts were especially aggressive against Ameri-
can Smelling, New York Central. Reading
Southern Pacific, Union Pacific and United
States Steel. in which substantial declines from
the high points Of the day were recorded. New
York Central made new low record for the
year at 1095s. the decline being accompanied
by rumors Of new financing by the company
and reported internal dissension among the off,
GERS and financial managers OF the property
There was no change of Importance in the
money and foreign exchange markets except in
time loans of long maturites which showed d
slightly harder tendency
There arc many reasons. and good ones too,
that suggest the purchase of securities for in
Yestment account at the current level. while
some careful observers believe the time is ripe
Tor the accumulation of speculative lines 10 hold
for higher prices that they assume will be
brought about the direct result of specula-
tive conditions. 1t is reasonable to look for a
rally from the extensive decline of the last ten
days, but sustained bull movement appears
out of the question The absence OF bull ac-
tivity, however. ought not TO discourage invest
ment buying: indeed. it is evident that advanc-
ing prices check operations of this character
while sharp downward movements bring out
money from unsupported sources to be placed in
attractive securities. In the first two days OF
the present week there was large amount of
buying for small investors-that is people who
buy odd share lots. Commission houses report
a large business in ten and twenty share pur-
chases where the actual certificate for the stock
passes out of the Street and they make the
prices with frequent downward swings there
will be enough stock taken out of the market 10
a great scarcity for speculative purposes
This is something which the enthusiastic shorts
would better bear in mind. Since March an
enormous amount of stock has found a new
resting place, and In all cases IT has gone to
stronger hands than those that formerly held
ii. while each successive decline serves 10
strengthen the technical position Of the market
and helps to clear the way for an extensive adj
vance when other conditions are favorable for
such a movement. The uncertainty over the
crops, the congested condition of the bond mar
ket and the probability of further forced liqui-
dation by interests who severely injured
in the March panic discourage the idea of the
development at the moment of a long season Of
advancing values. but they do not suggest any
weakening in the Intrinsic worth of securities
Feople VINO nave bought stocks TO sell at higher
prices will make no mistake by exercising pa
thence though their period of waiting may be an
extended one.
Most of the better class OF securities are cboar
at present prices but this fact does not nre
clude the possibility OF lower prices AS a fact
ii is believed in circles where careful stud, no.
been given for years to market movements
that the low point Of 1907 has not vet been
reached Fortunately the decline so far ba
not oeen accompanied by actual deprecta
ton In the real value Of securities There bava
neen no important adverse developments in the
business world. the only unfavorable feature
at present pelns the poor condition of winter
wheat A big falling of in the yield of wheat
however, Will not upset the Industrial acti,,i
ties of the country There is a good sized cor,-
pany of people now preaching calamity but
their parrot-like calls not convincing The
age of reason has not departed and the time
for locking ones money in ones stocking has
not arrived. And II any one wants proof of
this statement ii may be had in any represen
tattve banking house. where (. will be found
the people are investing their funds In attrac-
tive dividend paying stocks Stocks are being
taken In preference TO bonds because Of the