The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-10
GOLD NOW PLENTIFUL
BUT 1T DOES NOT HAVE THE EFF
Feet TO STTTFEN PRICES.
A RUPTURE WITH SPAIN
Over the Cuban Question is Feared by Those
Who Manipulate the Worlds Markets
Yesterdays Trade Review.

New York, Oct. 9.-The bears renew
ed their raid ON the market to such good
account that few stocks have ESCAPED
with less than point net loss. The
course of the market yesterday in face
of extraordinary dullness had led many
10 suppose that the bear campaign had
come to an end and that the market
would probably sink into inanimation for
a time. The usual end-week covering
of short contracts was expected to stiff
fen prices slightly. Quite the contrary
occurred. Prices did improve fraction
in the first hour on very light volume
of dealings. But weakness developed in
Chicago Gas and checked the rise. The
room traders soon afterwards detected
selling by houses with Washington con-
nections and bears seized upon this as
proof Of inside information of mys-
terious something impending in Wash
ington that might play havoc with val
ues when it becomes known. What the
mysterious something was, was not
disclosed. The stock market is pecu-
liarIy sensitive to limitations from
Washington at this time, owing to
conviction in many minds that it is only
a question of time when the Cuban ques-
ton shall lead to a rupture with Spain.
Much stress is laid also by traders IN
stocks upon the pending decision of the
Supreme court upon the Nebraska max
imum freight rates case and the case
against the joint traffic association. The
market was evidently unprotected by
supporting orders and the aggressive
short selling by the bears led to rapid
declines in light transactions. Only two
stocks in the list shows sales as high
as 10000. These are Chicago Gas and
Burlington. Chicago Gas, Omaha, Man.
haitian, Missouri Pacific and Burlington
were conspicuous in the decline. Con-
solidated Gas fiuctuated in its charac-
feristic way, breaking 91a points at one
time, but ending with recovery of 3
points, There were slight recoveries in
some stocks just at the close. but most
stocks closed at the lowest, the prevail
ing tone being very weak.
Probably superficial view of the
weekly statement of the New York
clearing house banks had something TO
do with to-day's selling movement of
stocks. The professional trader usual
iy accepts a decrease in the surplus
reserve al a specific admonition to sell.
item was, in fact something of sur
prise, in view of the rather strenuous
efforts by the banks in the last two
weeks to prevent a further shrinkage in
their surplus. But the small decrease IN
loans reported this week, 1862, 300. IN
dictates that the banking authorities view
with equanimity the decline in their re-
serve surplus, confident in the strength
ening force of the S6,350,000 in gold
now in transit to New York from Eng
land and France. The gold arrivals of
the week reflected an increase in specie
of 81 $50, 400, but are more than off
set by the decrease in legal tenders of
$4,302 300. The demand for legal ten
ders is very keen and the best efforts of
the banks and the United States treas
ury are not equal to fully providing a
supply. The New York sub-treasury has
been obliged to refuse to supply legal
tenders in return for gold except for
telegraphic transfer of currency to other
Sub-treasury points.
The New York banks have been set
ting their balances at the clearing
house during the week in gold to large
extent and the prediction is made that
the payments of customs duties will
soon be made in gold. Chicago banks are
reported also to be presenting gold at
the sub-treasury there with a request
for legal tenders and the treasury at
Washington is beginning to find itself
embarrassed to supply all those de-
mands upon it. Since September II the
decrease in legal tender in the New
York banks reserves has amounted to
$21 ,351 300 and the specie has increased
nearly 81, 100000 in the same time,
Notwithstanding large exchanges of spe
Gle for legal tenders at the sub-treasury.
The ample proportions of the country $
gold reserve has doubtless had much to
do in deferring the import movement Of
gold, which was fairly inaugurated yes
terday. The stiffening of exchange rates,
consequent upon the purchase Of bills
against these imports, is believed to be
but temporary and the movement of
gold is expected to continue steadily for
some time to come. The effect on the
money market of the gold engagements
has been to impart a distinctly easier
tone, time money declining to 3 per cent
for sixty days and to per cent for four
months and longer periods. Outside buy
ers of commercial paper have been in
the New York market during the week
and though the supply of paper has been
in increasing volume, rates have been
easier and are at Az to per cent for
prime grades.
The stock market has been singularly
unaffected by the beginning of the gold
movement, which almost always has a
marked sentimental effect on prices. The
resistance Of the market to the effect of
the heavy slump in Chicago Gas on
Thursday and the hardening tendency
on Friday on the large shipments Of gold
announced on that day led to the sup
position that the reaction was at an end
and that a rally would ensue. But to-
days market has completely belied this
expectation. The market has been dull
and professional all this week, sensa-
tional movements Of special stocks fail
ing to have any marked effect on the
general market. These included jump
Of seven points in Manhattan on Mon
day on a squeeze Of shorts, the slump in
Chicago Gas on the purchase of COM
peting companies by the great gas syn
H. 90 ond fbo ucuaI marcurial nourca NJ