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BONDS. 103% North Pac 4s ½ + AT&SFg4s.101% * Reading gen 4s 96% B & gold 4s 102 SL&S ref 4s. 82½ Chic B & 4s 94 % + SLSW con 4s.. 72% 1/4 CRI&PRR + 1/2 Un Pac conv 4s... 98% Col T 5s. 79 75% U S Steel 5s 59½ Consol Tob 4s 14 611/4 Wabash D Bs KCFS&M4s. 80% STOCK MARKET OPERATIONS. Transactions in yesterday's stock market were made up in great part of the operations of the professional element and sales by dealers who decided to convert paper profits into cash. The board room element was bearish throughout the day, and in the absence of a public demand for securities early efforts to reduce prices met considerable success, although the reaction was not effective in bringing a large amount of stock on the market. There were no news developments of sufficient importance to induce liquidation, but the room traders thought that the trust company failures in Cleveland and Boston warranted an attack on values. These failures were not large enough to be classed as influential factors in the general financial situation, but, of course, the theorizing speculator immediately saw in the trust company troubles indications of serious disturbances in similar institutions in other parts of the country. The local banks are not affected in any way by the suspension of the Federal Trust Company in Cleveland, or by the failure of an unimportant concern in Boston. As a matter of fact, the stock market was ripe for a reaction, and the decline was due to technical conditions rather than to developments outside of the Exchange. Vigorous efforts have been made in the last few days to boost prices, and moderate improvement has been recorded, but the so-called public has not responded to a noteworthy degree, while, according to the reports from commission houses, there is nó immediate prospect of enthusiastic interest in speculation from that quarter. Important market operators are undoubtedly working to bring about a higher quotation level, and for this reason the ordinary trader ought to be extremely careful in selling stocks short. It is said that there is still a large short interest in Union Pacific. In well informed circles the tip has gone forth to hold Southern Pacific, but no reason is given for the belief that a higher price will be recorded in the near future. Southern Pacific, however, is not selling at an exorbitant level, and people who own the stock may act wisely in maintaining a tight hold of the issue, although profits may be a long time in coming. St. Paul, which has enjoyed improvement in the last week, is certainly entitled to its gain, and conservative operators believe that eventually this issue will sell far above its current level. The report of a close alliance between the St. Paul company and the Union Pacific, other than the trackage alliance already in operation between the two companies, is apparently dying a natural death, and the chances are that the attempt to convince the public that a new era of railroad consolidation is about to develop will end in miserable failure. The intrinsic value of securities, as a rule, is greater than the present market prices. Efforts to stimulate quotations through the medium of Wall Street fairy tales will injure the market and reduce the chances of a genuine bull movement in prices, and it is encouraging to note that the public shows no disposition to be gulled by the purveyors of false information. Conditions underlying the investment situation are favorable, and the time will come when the market will rise in response to the factors governing the actual worth of securities. People with ready money may find it advisable to buy stocks on all reactions. In the last hour of trading prices exhibited a rallying tendency from the low figures of the day, especially in St. Paul, Union Pacific, People's Gas and United States Steel preferred, in which the shorts appeared anxious to cover their outstanding contracts. As a result of this movement the greater number of issues recovered their early losses, closing at small fractional gains. People's Gas showed exceptional strength, ending at a net advance of 2 per cent on rumors that the company would win in its pending case in the United States Supreme Court. As to-day will be a holiday on the local exchange the weekly movement of money was compiled yesterday afternoon, and it is interesting to note that the loss of the banks to the Sub-Treasury has been offset by a gain from the interior. Unless, therefore, there has been a large increase in loans and deposits in the week, to-morrow's statement of the Clearing House banks ought to show an increase in the reserve above legal requirements.
