New-York tribune., 1908-12-15
FINANCIAL AFFAIRS
STOCKS END WEAK.
Early Strength FolIo1ced by Losses
-4mericdn Smelling Wcak--.
MOney Rates Firmer.

c,oole vre-e active throughout the five hours
Of trading on movement Of values that showed
great frreg1llarity with strength in the forenoon
onerations and weakness in the late TRANSACTIONS
that left the greater number OF issues at snal
net losses. In the early market new high levels
were established by various shares, Including
baltimore & Ohio and some of the Gould securi-
ties hut in the subsequent dealings a noticeable
lack Of buving power induced enough aggres-
siveness on the part OF the professional elemeht
20 attract commission house liquidation 20 an
extent that caused material decline IN most
of the active stocks. The downward movement
was helped by further pressure on American
Smelling and Refining which sold off more thah
4 points closing az a net decline OF ) q on trao-
ing that represented the liquidation OF marginal
accounts on stop loss orders and consistent sell
ing pressure from the room element, the opera
ttons Of the latter being based on the apparently
well founded report that the big smelling trust
soon would be opposed by q new company rep
resenting some Of the strongest outside smelling
interests in the country. American Smeltlhg
At its low price yesterday showed loss from
IT'S high quotation of the year of more than p
noin-s Notwithstanding the possibility OF an
oppostion company and the fact that the smelC-
ing interests are suffering at present to certain
degree from the low price Of silver, Whlch mas
forced the closing Of some Of the low grade
and Refining Company has declined to a point
that ought to suggest danger in further heavy
operations on its short side While the general
market was weak in the afternoon. a few stocks
closed at net improvement, notably Baltimore &
Ohio Colorado & Southern, Great Northern and
the Gould shares
Current indications suggest that the money
market will be under some pressure in the
course Of the next few weeks as a consequence
of the recent decline in reserves Of the banks
and trust companies and the probability of
material contraction in cash resources in the
rest of the month from gold exports and
from the payments Panama bond account
and on the Brazilian coffee loan. Since Friday
the local banks have lost on their operations
with the Sub Treasury more than Sl6,0OO,0OO'
due chiefly to the Panama bond operations
z.biIe before the end Of the year the banks will
have paid 10 the government the entire purchase
amount Of the issue. s27,o00,00o. The bonds
bought will be added TO the loan account OF the
banks In a few days S10,000000 additional will
be taken from the cash holdings OF the banks in
the financing Of the Brazilian loan and an equiv
slenr amount for time at least will be placed
TO the loan item, which, with the Panama
financing will serve to increase the latter ac-
count and lower the reserve above legal re-
quirements All the banks and trust companies
o+ this CITY show a net increase in loans for the
last two weeks Of Sl1, ,49e300 while in the same
time there has been q falling off In the reserves
. of the associated banks Of $l1,231,O2o and re-
duction in trust company and non-reportlng
banks Of $22, ,10GIO0. Both time and call money
rates exhibited a firmer. tendency yesterday.
while sterling again was strong, with tndlca-
tions in the foreign exchange market Of addi-
tiOnal exports OF gold in the current week The
Bank Of France secured all the South African
gold that was offered in the open London mar
ket, where the price of bar gold was advanced
/ sd. and cable dispatches foreshadowed the pos
sibility of an advance in the Bank of Engand's
/ minimum rate of discount at the weekly meet
I iug Thursday.
In view Of the fact that stocks selling at
the best prices Cf the year, with d heavy amount
/ Of securities carried on borrowed money Il is
not improbable that loan market conditions NAV
bring about a temporary lower level OF values.
In addition 10 the factors named affecting loan
4 rates. a further influence making for st4er
price for money viii be the preparations for the
. January interest and dividend disbursements
which are estimated in the neighborhood of
5000 600 900. Bearing these considerations in
! mind prudence would appear 10 suggest eN-
/ treme caution in market operations at this
/ iuncture Commission houses a rule are not
bearish, though they look for passing weak