New-York tribune., 1907-06-02
STOCK MARKET OPERATIONS.

Stocks were weak in the greater part OF the
two hours of trading under the influence of SELL
ing for short account and further forced nQuida-
ton The publication of a bank statement
showing a material falling off in the reserve
above legal requirements did not tend TO en-
courage speculative enthusiasm the long side
OF the market; indeed. it was an important infiu-
in increasing the selling pressure In the
final trading in the course OF which the leading
active issues showed losses OF a point or more
compared with the closing figures Of the pre-
ceding day. Owing to a large increase In loans
moderate gain in cash holdings had refiec-
ton in the reserve item. Deposits were ex-
panded to the extent of sl5,554,100 through a
substantial gain in cash and an increase in loans
Of s13,541,6o0, and as consequence the cash
required against deposits increased s3,SSS526,
with the resultant effect OF decreasing the re-
serve above legal requirements s2,9oe425 to $1a,-
7s2,450. This compares with reserve at this
time year ago Of s6.s16,025 and s6o50,275 in the
corresponding week In 1905. Commission houses
were not important factors in the days trading
on either side of the market except in the case
of houses which were liquidating speculative ac-
counts Of people who found It necessary to raise
cash. in many cases at sacrifice. in order to
protect other commitments. The copper stocks
and the Hill and Hartman issues were attacked
by traders, and the entire list was under pro-
fesslonal pressure. Poor cotton prospects and
bad grain market conditions were the chief ar
guments for the bearish sentiment.
Monetary conditions at this centre are sound
and the loss In the reserves OF the local banks
last week does not encourage the expectation
Of high rates for funds In the near future. In
banking circles 1t is thought the quotations for
loans will rule at an easy level throughout the
current month. unless there should be an IN
crease in the demand for gold for foreign ac-
count, and It is not believed the July interest
and dividend disbursements will cause any dis
turbance in the market These payments will
be the heaviest in the history Of the country
and will place in the hands OF investors a large
amount OF funds for reinvestment an operation
which doubtless will be undertaken, owing TO
the attractive level at which first class stocks
and bonds are selling. The greater number of
issues, both in the share and bond departments.
are selling at an extremely attractive level for
purchasers who desire to buy outright. either
as an investment or q speculation, and It is a
noteworthy fact that in the last few weeks an
enormous amount OF money has come into Wall
Street from investors who buy odd share lots
that Is, amounts Of stocks under one hundred
shares. Buying OF this sort is significant of the
confidence the public has in the investment sit
uation. The small investors are not afraid of
the calamity talk that Is heard in the specuIa-
tive community. Tney realize that the country
may have a poor crop year and they appreciate
the fact that business may undergo a healthfuI
reaction. but they know the nation will continue
TO grow. despite temporary setbacks, and that
American railroad and industrial securities are
worth more intrinsicaly to-day than ever before
in the history of the investment market MANY
big men have been seriously damaged in Wall
Street In the last half year. and the small in
Vestors. consequence, are able to buv stocks
at good prices.
Railroad earnings reported in the last week
showed heavy gains over the same time a year
ago, while bank clearings also were enormous
In the latter there was slight falling off from
lighter movement IN the speculative markets
All conditions in the trade world fail to bear out
the Wall Street theory OF coming business re-
action Of big proportion. and this is particularly
marked in the iron and steel industry, which is
one of the best trade barometers we have. Ad-
vance orders for steel rails for 1908 delivery
are extremely heavy and reflect no uneasiness
among railroad men over the future of business
Conditions of this sort fail to impress the securi-
ties markets at time when so many people
who, through speculative excesses of recent
years, are being forced to sell their securities
ana when bear Spectators are pressing the mar
ket for profits the short side but thew
trinsc values and encourage the hope that at
no remote period prices will move TO a level
more in keeping with the actual worth of gecu-
rites.
GOVERNMENT BONDS.