New-York tribune., 1907-06-15
STOCK MARKET OPERATIONS.


advocates of lower prices the greater number
of active issues showing extreme weakness
throughout the day. Declines represented press
ure from the bear party and forced liquidation,
the activity on the part OF the professional eIe-
ment being due to various considerations. in
cluding gold exports, alleged suit TO restrain
the issuance of the proposed new Union Pacifc
securities and rumors of difficulty the part
of merchants in getting their paper renewed at
the banks. Wall Street has an idea that the
Milliken failure will be followed by further
trouble in the mercantile world, and 1t believes
some commercial houses in this city have been
expanding too fast and unable TO Sc
cure funds TO handle their obligations Such
theory, whether right or wrong, is a powerful
factor in creating bearish sentiment and It be-
comes particularly effective a time when
there is no public demand for securities. Forced
liquidation yesterday was made necessary by the
constant sagging Of prices. long accounts being
thrown over, owing TO the exhaustion of
gins and the unwingness OF spectators
longer TO support their holdings while there also
was some selling by people who were compelled
to raise money TO protect larger commitments.
The heaviest selling pressure was in Reading
and Union Pacific, both of which declined more
than points. though recovering part Of the
loss in a feeble rally the close. Reading
is among the few securities that is not consid-
cred cheap at it's present price in comparison
with shares that pay the same or higher divi-
dends, and just at present the professional ele-
ment IS especially bearish on the stock, because
of the imprObability Of an increase in its divi-
dend rate at the forthcoming directors meeting.
Gold TO the amount OF S2,000,000 engaged
for export and call money distinctly firmer.
General factors affecting the intrinsic worth
of American investment values are sound. and
hon ,IO
not represent the actual situation outside OF
Wall Street. Investors have been large buyers
Of stocks IN the last few months. and II is like
ly much of the money which will be distributed
in interest and dividends in July will return 70
the market. owing to the attractive prices at
which first class securities may be bought. This
investment movement has been along quiet lines.
and has exerted effect upon values, but at
some subsequent period it's influence will be
reflected in advancing values and trouble I'm
quarters where IT is believed there can be no end
to bear market. While stocks have been de-
clnng the investment position OF most proper
ties. the shares Of which dealt in on the
Stock Exchange. has been growing stronger,
particularly in the case Of industrial corpora
tions such the United States Steel Corpora
ton. American Locomotive, International Steam
Pump, International Paper American Car and
Foundry and AInalgamated Copper. The copper
and the recent weakness in the price OF the
metal in London does not represent adverse
change in trade conditions. There is big short
interest in copper metal in the British capital.
and every trick known to speculation is being
played In the effort break the price 10 a level
at which the shorts will be able to cover at big
profits. The supply of the metal. however. ls
extremeys limited. owing to the tremendous
consumption Of the last twelve months and un-
thara ba mn at fa hia
change in industries which are large users of
the metal the copper bears may find themselves
in a hole 1t is said there are no exports of cop
per at present. Exports are small, due 10 tho
scarcity of the product, and not to an absence
Of demand
According to the known movement OF money
in the current week the local banks have lost
81 600. 900 IN cash, and unless there has been n
material contraction in loans the reserve above
legal requirements naturally will show a further
reduction In to-day's bank statement Last
week the decline in carried that item to
s67S9,S00 but indications do not suggest q fall
ing off this week large enough TO place the re-
serve under the 20 per cent limit while even if
deficit should be reported banking circles
/ would not become alarmed. as the supply of
funds hand Is ample for all the legitimate
necessities OF the financial and commercial COM
munity 1t is true, as Mr.. Hill says, there is
| not enough money in the country at the moment
/ TO meet the demands incident TO the expansion
! policy of the railroads, and q consequence the
| transportation companies will be compelled to
grow more slowly. but this will furnish no cause
| for uneasiness The railroads have been spend
/ ing more money than conditions have warranted
! ard so they now find themselves in a position
| where they cannot sell their stocks and bonds
on favorable terms. if all, while the best they
can do is TO issue short term notes at a great
expense. Fortunately the check TO railroad ex-
pansion plans is not interfering with earnings
which continue to make new records that insure