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

The reported intention of the government to
proceed against E. H Hartman to compel him
To answer questions which were put TO him at
the recent Interstate Commerce Commission
hearing. and the belief IN the Street that the
government viii bring action to break the
control exercised by the Union Pacific over the
Southern Pacific, were responsible for active
selling movement in the Hartman shares at the
opening of the market. in the course OF which
substantial declines were recorded in Union Pa
ciic and Southern Pacific. Weakness in these
issues exerted a sympathetic effect upon the
greater number of stocks. but there was little
actual liquidation. the movement being made up
in the majority of cases Of traders operations.
Speculation became extremely dull in the after
noon, while prices for a time practically halted.
this condition apparently being due to the alb
sence of commission house transactions on
either side OF the account and the oversold po-
sition Of the market. In a few instances long
stock came out, the sales representing the
cessty on the part Of holders to raise cash, but
for the most part the days operations originated
on the floor of the exchange, especially in the
Hartman shares which the popular bear
favortes and which promise to remain unpop-
ular speculative purchases for a long time to
come, despite their undisputed intrinsic value
In the last hour the market became frmer and
a part of the early loss was recovered. the i'm
proyement being due to covering Of shorts. but
in the greater number OF issues final prices
showed declines compared with Tuesdays
last quotations.
On their operations with the Sub-Treasury the
local banks have lost far In the current week
more than $4.000,000. this amount not including
the S1OO0OOO gold secured for export yesterday.
Sterling exchange strong, and there
change abroad that indicated an immediate ces-
sation of the demand for gold for Paris account,
and just as long money remains easy here and
the Paris check on London continues at its cur
rent level this market must expect to bear the
burden of supplying foreign needs. The burden.
however, is not heavy one, owing to the strong
position Of financial affairs, and If II should be-
come onerous the movement would be checked
by an advance IN money rates No hint Of what
the Secretary Of the Treasury intends to do re-
garding government deposits and the payment of
I the $40 600 900 government As which fall due In
July has from Washington, and Wall
Street is considerably at over the matter.
but the question is not that need cause any
uneasiness inasmuch there Ia enough money
In the Treasury vaults to pay the bonds off at
their maturity. while If the Secretary should de
eide to draw on deposits in national banks for
the liquidation of the bonds the amount of
money withdrawn speedily would return. and the
whole operation would amount TO little
than a bookkeeping transaction. 1t has been
suggested that the government might put out
Panama Canal per cent bonds, and that hold
ers of the As of 1907 would have the opportunity
10 exchange their bonds for the Panama Is. but
the fact that authority to issue Panama 2s IN
wolves a restriction regarding the purpose for
which such bonds to be issued doubtless
would interfere with paying off the 4s in this
manner.
There are number of large payments to be
met in the course of the next few months
account of new securities authorized in the last
half-year and bankers believe there will be
disturbance in the money market a conse-
Quence. While the securities taken by
syndicates are not selling fast leading banking
! houses are not discouraged over the outlook and
/ they feel confident that little patience now will
bring big results later There is nothing in
! the current position of the stock market that
warrants the extreme pessimism reported In
! some circles over the future OF the country and
there is no good reason for the argument that
because of the low prices OF securities the coun-
try is going to pieces. Wall Street believes that
the country will suffer just as 1t has been suffer-
. ing In recent months, but spectators fail to
take into consideration that the country at large
( is III better shape than before reported and
that the factors affecting stocks have not besn q
weakening in the position of our industries or
financial distress throughout the land
GnNERNMEh- poNoe