Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-31
WALL STREET WEAKENED.
A Big Jump in Rates for Money Throws n
Wet Blanket Over Speculation in
Railroad Shares-Thc Trusts
Nealecfed.

neglected.
NEW YORK, December 30.-The string
ency in the local money market was again
the controlling factor in the stock market
to-day. and weakness and generalization
were the features in the early trading,
though partial recovery late gave better
tone to the market
The unusual and, of course, unexpected action
Of the governors of the Bank of England this
morning in raising their rate of discount from
to per cent, when the regular meeting day
is Thursday. and a reduction has been ex-
pected for some time, caused considerable de-
moralization among the foreign holders of
American securities and while the London
figures came materially lower this morning
this was supplemented by liberal selling for
foreign account at the opening of business
here. The tightness of money here was lnten-
sihed, and the rates on call were 25 per cent
and later touched 40 before reaction was had.
The rate fell away rapidly to 10, and after all
borrowers were accommodated it fell to at
the close. The action Of the Treasury Depart.
ment in offering to prepay the January interest
without rebate had more than anything else to
do with the easing up of the money rate. but
the further decline in sterling exchange was
also an influential factor.
The selling of the foreigners at the opening,
supplemented by free short sales by the bears
and traders, the latter being bearshly inclined
for the time being. caused complete demoral-
iZation of quotations, and first prices were
from "A to l per cent lower than SATURDAYS
closing figures Louisville and Nashville Erie
and Jersey Central showing the largest de-
clines. The pressure to sell created marked
activity, and further small fractional declines
we're made on a large business during the first
hour. The concessions in prices brought out
nd hrrxyiu hn,t
groups of stocks were well supported the
GraDgers and Gould stocks with Louisville
and Nashville being especially conspicuous.
The resistance to the decline with the cessa-
ton of the London selling after that time
caused let-up in the pressure from the bears
also, and notwithstanding the steadily mount
ing rates for money, prices began to recover,
after the first rush was over. Dizziness and
frmness then became the only features of the
market, Union Pacific furnishing the only i'm
portant movement and the usual stagnation
had settled down upon the market before
noon. The list Is almost invariably lower,
though the declines in the afternoon are frac-
nonal only, not one important net loss being
recorded The Trusts were quiet and without
feature.
Railroad bonds showed little more anima-
tion and sympathized with tile weakness in the
share list, being heavy to weak throughout the
session, though as usual the final figures show
few important changes.
The Post says: The enormous balance of
trade in favor of the United States and against
Europe in consequence of our heavy exports
in the last four months were already preparing
the way for imports of gold, but the high rates
for money in the market last week, and pros
pect of their possible continuance for week
yet, were an incentive to move capital from
London to New York Immediately for the sake
of the interest, and rhis caused reduction Of
Il per cent in the rates for sterling exchange
this forenoon, putting it down to the gold i'm
porting rate. 1t was undoubtedly IN anticipa-
tion of this and for the purpose OF preventing
the export of gold from London to this country
that the unusual action of the governors OF the
Bank of England was taken in advancing the
rate on Monday, instead Of the regular day on
Thursday,
While money was ranging from 20 to 80 per
cent per annum on the Stock Exchange this
forenoon it was known that checks to the
amount of near So 100000 for the payment of
the January interest on the Government debt
had been forwarded from Washington, and
though it was supposed that about S6.000,0O0 of
this would come at once into the New York
banks the Assistant Treasury had no authority
to pay them until January L which would
practically give no relief to the money market
before Thursday or Friday; so that altogether
it was very severe pinch.
The fonowlng table SHOWS the prices OF active
stocks on the New York Stock ExcnRnge yester-
day. Corrected daily for THE DIsPATCH by
WHITNEY b &sTKPHRNsoN, Oldest Pittsburg mem-