New-York tribune., 1907-11-28
STOCK MARKET OPERATIONS.

On a light volume Of business stock market
values In the greater number of securities
moved toward higher level, net gains of l per
cent and more being common among the leading
issues. Trading made up as rule OF the
operations Of the professional element which
again based its transactions on the Improvement
in the financial situation and the idea that
even II tie time is not ripe for the beginning of
an active upward movement technical market
conditions warrant further substantial rise in
values There was little evidence of outside
buying except for investment account while
on the other hand there were signs of quiet
liquidation on the advance, particularly in the
afternoon, when prices were at their best In such
stocks as Pennsylvania, Reading Union Pacific
American Smelling, New York Central and
United States Steel. This selling however was
without effect upon quotations, which at the
end of the day were at or near the top Missouri
Pacific, Pennsylvania and ST. Paul were weak
exceptions In the greater part Of the five hours
OF trading. their heaviness being accompanied
by further dividend reduction talk The chief
trouble with Missouri Pacific appears to be the
lack Of support. Liquidation of the stock and
PROFESSIONAL pressure against it apparently do
not disturb the Gould interests, who perhaps are
willing to let it decline in order to Increase their
holdings. As a D per cent stock Missouri Pacific
Is remarkably cheap, and even if the dividend is
to be reduced the issue is we'll worth buying IS
on per cent basis it would return at the cur
rent quotation about per cent In the last
half hour the majority of issues were decidedly
strong, especially American Smelters Atchison
preferred Canadian Pacific, General Electric
Great Northern Louisville & Nashville. North
ern Pacific. Reading and Union Pacific The
pelleI that harmonious relations have been es-
tabllshed between the Hill and Hartman in
terests was factor that encouraged final COW
ering operations, while the more optimistic
views expressed by the leading bankers regard
ing the financial situation also had much IN do
with the bull sentiment prevailing at the close
of business.
So far in the current week the local banks
have gained on their operations with the SUh
Treasury more than $4,000, 600 and though shin
ments Of money to the interior by the direct
movement have been heavy the course of tbe
money market indicates Improvement in cash
holdings as a result Of gold imports and excess
receipts from the government 1t is therefore
not unlikely Saturdays bank statement viii
show a reduction in the deficit in the reserve
item and will mark the beginning of the re-
establishment OF normal conditions in the fnan
cal situation. The banks. it is believed. VIII
take the entre amount OF the Panama bonds
and enough Of the Treasury per cent cer+if
Gates Of indebtedness to permit an exnansio,,
in note circulation Of at least 800 600 600 In
Volving comparatively small loss to the hanks
in actual cash. as 80 per cent Of the purchase
price or the Panama bonds is TO be left with
the banks and rs per cent of the pavn1en+s ~,
the certificates, and as q consequence of thIs
movement and OF gold imports, which doubtIess
VIII reach slOO.OOO.O0O, the credit facilities Of
the lending institutions will increase to a de-
gree iuat VIII IurniSn more than annie sIin-
ply or accommodation to meet the requirements
Of trade With this gain in bank holdings tba
Treasury eventually will be able to Withdraw
government deposits In order to strengthen the
federal working balance which is now IN
usually low, with little prospect of help from,
government revenues for some time TO come
owing to the falling off both ia customs and
internal revenue receipts and large Treasury
expenditures In the course OF the next few,
months heavy payments will fall due on various
accounts for which provision must be nade nv
the banks. and II IS extremely fortunate that
financial affairs now being readjusted to a
basis that will permit the meeting of obliga-
uons without further disturbance in the money
market.
Current indications suggest that the various
forms OF monetary relief will mako possible the
handling of obligations OF the near future in a
manner that will create confidence In all circles:
that they will effect a restoration cf the Clear
ing House bank reserves to the legal limit and
more. and that they will bring about conditions
which at no remote time will afford our rail-
roads ana other corporations the facilities TO
continue their work Of physical expansion on
lines commensurate with the growth OF tba
countrys population and general resources In
the mean time quiet market on the Stock Exl
change doubtless will prevail, particularly as
the banking community will not be in the mood
to extend credit for the speculative operations
of interests who believe that specuIation rous,
come ahead of the demands of legitimate busi-
ness. Advances that recently have taken nIaca
in securities have been due almost entirely 10
covering by the shorts, but II may be we'll m
note that demands from this element have dis
closed the fact that the supply of stocks avail
able for speculative purposes Is not as large as
IL was a few weeks ago, owing to the passing
of securities into investors boxes Every ad-
vance, however, brings out some stocks that
were carried over the panic period and the
knowledge that there are more stocks in the
market that must be liquidated naturally in