Evening star., 1896-07-20
FINANCE AND TRADE
Effect of Lower London Prices and
Expected Gold Shipments.
ABILrYTO FLOAT ANOTHER BOND ISSUE
Wall Street Awaiting Declaration
by the Administration.
GENERAL MARKET REPORTS
Special DisDatch to The Evening Star.

Special DisDatch to The Evening Star
NEW YORK. July 2O-Lower prices n
the London market and the engagement
OF more than three millions gold for ex-
port tomorrow resulted In further declines
In all classes Of securities this morning
The hrst half of the session was devoted
to liquidation and an extension of The
short account. Prices rallied reluctantly
and failed to hold, the selling, at even a
fractional advance. being superior to the
buying. Speculative hysteria is rampant
and securities are sold indiscriminately, the
good and the bad yielding without opposi-
ton.
The dread of reign of terror is no longer
disguised, and fear is making inroads upor,
the forces with which it is to be combatted.
The fury of the decline may stay the
process later on. but at the moment indica-
lions OF Improvement are decidedly in the
minority.
So much Of the prevailing fear as is at
trlDutable to anxiety as to the governments q
ability to sell bonds. to protect the gold
reserve. may be set aside as being wholly
unwarranted. In an interview with a rep
resentative OF prominent financial news
agency, Mr.. Morgan is quoted being con-
fdent of market for a further issre of
bonds. should this action be forced upon
the federal government. The cause of the
present scare did not originate in the bond
trfcts assist in the furnishing OF the ma
tfonal Credit by Withholding their support
in an emergency.
The condition of the foreign exchange
market Is wholly unsatisfactory, a good
demand for all classes OF bills being report
ed AT rates rejecting a comfortable margin
OF proht to exporters of coin. The few bills
Offering are drawn. mostly, against gold
shipments and absorbed as soon offered.
II Is perhaps too soon to expect any on
clal advices as 10 the administrators Will
iEgness and determination TO issue bonds,
but such advices would materially improve
the present situation. Past records offer
small consolation in times of general sp-
prehension. No ordinary fear would have
dwarfed values beyond the point of recoa-
milton. and no ordinary or routine develop
ment will restore them.
An uprising against repudiation and
positive declaration that a bond issue will
be annornced the moment the danger
point is reached are both essential at this
time. If the former need was as sure Of
being supplied the latter thf short ac-
count would Immediately decline in popu-
larity.
The Industrial shares were the subject of
an attack in the interest Of depressing the
railway list. A reduction in he rates for
refined sugars assisted the mo cnent in
American Sugar, and a lack of support in
Leather preferred smplified the decline In
that property
The international issues were especially
weak II roughout the day. and the Goa.
shares were onered down by traiers with
out regard for the risk involved In the
Process. 1t is we'll TO remember that many
Of the dividend d-paying properties now sell
irg under par have reported no significant
falling of in either earnings or prospects
These properties will eventually find favor
in the eyes OF investors. and Will be the
first t. feel any change In speculative SEN
timent.
There may be a preponderance Of argu-
nent against large purchases. except for
cash. but 1t is also true that selling at the
present level is attended with unusual
risk.