New-York tribune., 1907-04-20
STOCK MARKET OPERATIONS.

SIOCh MAhhEI UFEhA11UNO.
In the early dealings in yesterdays stock mar
ket there was a weak attempt 10 advance quo
tatlons but the absence Of important buying
power soon brought TO g close bull demonstra-
tions by the trading element. the succeeding
operations being accompanied by narrow fiuctu-
stions generally in the direction OF lower quota
tions In the last hour the general market was
weak and excessively dun, the latter condition
being feature throughout the day. but final
prices showed unimportant changes. net losses
Of fractional dimensions being reported IN most
Of the leading issues. Canadian Pacific was an
exceptionally weak feature. declining more
than point. The movement IN this issue was
again accompanied by reports Of the loss which
the company may sustain. according to Wall !
Streets hazy ideas as result of small soft
coal strike in Canada. The labor trouble In
question s not within the Canadian Pacific ter
rltory. and even if it were it would not affect
the roads earnings. II furnishes. however. idle
thoughts for these idle days in the speculative
community The best informed operators be
lieve that stocks are a better purchase than a
sale but they do not look for an immediate in
crease in activity on either side OF the market,
though they do not hesitate to advise the pur-
chase OF good securities to hold for better
prices. A year ago the insurance companies
and other concerns in this country faced enor
nous losses as q result Of the San Francisco
earthquake and, consequence. in the
months following these institutions not only
we're unable 10 buy securities but were COM
PEELED IN many cases TO sell their holdings. To-
day the insurance companies look back with
justifable pride AT the record made in the last
twelve months. and they may congratulate
themselves over the fact that they are once !
more I'm position TO buy securities an opera
ton which promises TO become more pronounced
IN The course OF the year When one considers
the losses suffered by the California disaster |
last wear the failure OF these losses to bring
about a period OF great insolvencies and the |
present remarkable strength of conditions in |
San Francisco and in the countrys money mar
ket. certainly finds much reason FOR con- |
hdence In the stability Of material affairs IN the
United States. There have been big property |
losses and great stock market losses. but the |
general situation AT present is probably strong
er than ever before recorded in the history Of
the country
According to the known movement cf money
in the week, the local banks have gained in cash
holdings $2.777.O00 due entirely 10 operations
with the sub-Treasury and receipts Of new gold,
the interior movement having been against this
centre. In view Of the easy rates this point
for loans and the higher quotations interior
cities. il is not surprising that the shipments Of
it is not unlikely that the Clearing House insti-
tutions VIII continue 10 lose money for several
weeks TO come, particularly the spring sea-
IS late this year in most parts Of the
country Stock market movements in the pres
ent week have not been large enough 10 war
rant the expectation that loans on speculative
account have been materially increased, but it
is not improbable that there has been "A fur
ther transfer of loans to the Clearing House
local trust companies and it is therefore unlike
ly there viii be important increase in re-
serve above legal requirements; indeed. it is
thought I'm some quarters OF the Street a reduc-
tion viii be exhibited in the reserve item in to-
days statement Of averages. Bank holdings
are in strong position to meet reduction in
the reserve. IF there should be a heavy out
ward movement OF funds. owing TO easy money
rates the situation in this respect would be au-
tomaticaly adjusted. the demand from other
sources being checked by an advance in quo
tations Money moves TO the point where it can
be most probably employed. and in the present
case that point is not New York
Stock market speculation Is too quiet to mako
extensive demands on the loan market and there
Is no prospect of increased activity in the mat
ter OF speculative commitments on either side
OF the market in the near future The public
evinces no desire TO buy stocks despite the bull
ash letters that are being put out by commits
sion houses. The latter take the stand that the
market has been through a long period OF re-
adjustment 20 lower level. that weak holdings
have passed 20 strong hands. that quotations in
most instances are below the actual worth Of
securities and that ease in money and stability
in trade conditions are assured for q long tf,na
10 come Hence It follows from their point of
View. that stocks a safe purchase on au
reactions or at the current level to hold for
better figures Securities certainly look at
tractive as investment purchases. while. unless
there should be long period of unfavorable de-
Feiopments they doubtless viii prove profitable
Ior buyers who favor the bull side of the market
Reports received yesterday by the commercial
agencies covering ali parts Of the United states
presented nothing upon which could be based
an argument favorable to the theory held Jn
few quarters that a period Of business de-