New-York tribune., 1908-11-29
FINANCIAL AFFAIRS
SMALL STOCK CHANGES
st. Paul at Nep High Record
Bank Reserves Shoe Small
Decrease.

On O. fair volume of business stock market
values moved In an irregular manner through
out the two hours Of trading, with final changes
generally at small fractional variations as coLh-
pared with the closing of the preceding cay pe'
losses predominating. Commission houses were
not active factors in the dealings, and as RUE
the transactions were made up OF the operations
of the professional element, which succeeded IN
bringing about declines averaging ] per cent
in the active issues in the first half OF the second
hour following 4 period of moderate strength
The recession brought out few stocks, and IN the
last half hour the general list showed ois-
position to advance. chiefly as result CT over
selling by room traders. The metal shares We're
the weakest features In the course OF the de-
cline especial pressure being reported in Amer
lean Smelling, which was adversely affected oy
considerations based on the low price OF silver.
This stock closed at q net loss OF IA, While
elsewhere in the active list important changes
were reported by st. Paul, which enQed
et net gain OF a. Consolidated Gas at a net
loss of 2A, General Electric at a net advance
of 3h, Rock Island preferred at net gam OF
ia, Southern Pacific at a net loss OF p. ana
Union Pacific at net loss Of Is. The buying
of St Paul was better than that noted In other
psrts of the market the stock rising from i48 e
TO 15OA new high record for the year Re-
alfzing sales were responsible for the decline in
Consolidated Gas. which in Fridays market ad-
vanced more than seven points The weekly state
ment Of Clearing House bank averages showed
a substantial increase IN cash, but as a result
Of a large expansion in loans reserve above legal
requirements decreased s1.46S975 to S28.130,65O,
as compared with a deficit of S52,9S9,425 at tnls
time last year and q surplus Of S1,449,125 IN
1906 The statement OF actual conditions as OF
Friday night showed a loss in reserve of $685.
100 and an increase in loans OF s1O.S4O700. Casn
holdings of the trust companies and non-report-
ing banks increased, while their loans expanded
to the extent Of s5,SS4,600. Since the election
The loans of the banks and trust companies OF
tbJ ci+H- have
Stock market values in the last week recoV-
cred most of the loss suffered in the reaction
that marked the course of quotations IN the
preceding week and Notwithstanding the fact
that the average price for the leading railroad
and industrial issues was only fraction under
the high point of the election rise, commission
houses as a rule advised in their market letters
yesterday the purchase of securities to hold for
further Improvement. Based on the ease and
abundance of money and on the betterment OF
conditions affecting the intrinsic value Of stocks
and bonds, the outright purchase or hrst class
securities looks safe enough at the current
level as the character of speculative transac-
tions appears to point TO further operations Tor
a rise in the immediate future, but the exer-
else OF caution in the matter of buying on mar
gins may not prove unproftable Sharp re-
actions are probable, and in big bull markets
a drop of several points in day with quick
recovery is not unusual These reactions
serve TO keep the market in a healthful condl-
tion from the point Of view of the men who are
working for higher quotations with the as
sistance of unlimited credit but they tend to
wipe out the small man who generally buys more
stock than his resources warrant and who has
nothing to fall back upon when his broker
calls for additional margin. The possibility Of
q bear campaign with money SO cheap appears
out of the question and as a matter OF fact
there is nothing in the attitude of the specula-
tive community that suggests any effort on the
part of any set of traders to operate for lower
values beyond temporary turns on the short
side based passing technical conditions.
There are a number of sold out bulls and few
foolish bears who are predicting a collapse OF
the bull market but their predictions are
founded their desire to return TO the bull
camp AT cheaper figures rather than on legiti
mate reasons faVoring a elimination OF the rise.
The biggest bears in the Street at present
the people who have taken profits and the people
who failed to get into the market when prices
were at lower level
Bank statement figures published yesterday
do not encourage the expectation of lower rates
for money In the Immediate future. The people
behind the bull market are counting easy
money throughout the balance OF the year, eVens
though gold may be exported and the federal
Treasury may call upon depostary banks for
further amounts of government funds. The
cumulation OF credits in Europe against the
pected demand for remittance toward the close
of the year and the probability that bankers
desire TO increase credits abroad on account
of the uncertain foreign political situation and
the possibility that money in London soon may
be worth more at the British capital than IL is
here account. in great part. for the strength in
the foreign exchange market. London is being
called upon to ship gold 10 Egypt to Argentine
and to European centres, while Paris is taking
all the South African gold in the open London
market AS q consequence of this drain 1t is
~, tynnossthle that rates for funds at London