The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-08-15
STOCKS AND BONDS
INHERENT STRENGTH OF THE
SHARE MARKET SHOWN,

Offerings to Realize are Absorbed at the
Opening and a Fresh Buying Impulse Is
Started Which Establishes Net Gains
for the Whole Iist-GranSers Most Ac-
five-DecIine in Exchange Rates and the
Bank Statement vorab.e-Revicw of
the week-Deductions From the Bank
Statement-Stlver'sN New Low Record.
New York, Aug. 1-There was another
striking illustration today of the inherent
strength of the market for stocks heavy
offerings 20 realize at the ojening being
readily absorbed and strong fresh buying
impulse invited by the lower level OF prices.
This new impulse soon turned the toe OF
prices TO an upward course once more, WHIP
ing out the sharp early losses and estab D.
fishing net gains for the whole list. The
early decline extended TO from ~ TO 2 per
cent in many prominent stocks. and the
subsequent rise established net gains of
10 per cent in many stocks. The grang-
ers were foremost in activity and in the
width of the variations in prices, and there
vas probably an intimate connection be-
ress in wheat and the subsequent rally in
that market. A further decline of y per
cent in the posted rates for sterling ex-
change rates was strengthening INFLUENCE,
as was the favorable weekly bank STATE
nlent. The excess in the increase of loans
over the increase n deposits and conse-
cuent decrease in the surplus reserve of
sZ.1l9,400 IS an encouraging indication of
the increasing demand for money and
pansion of business. Although loans are
at this time of unprecedented volume, the
same is true of the deposits and the total
reserve held, and a decrease in the surplus
is looked forward 10 in the money market
to establish a better tone there. II can
correctly be sad that the lower range OF
prices in London this morning had an in
fiuence in depressing early prices here, but
II was a fat that good deal of the selling
IN London was on orders from this side, and
probably designed for manipulatiye effect
In continuing the New York decline of yes
terday. The industrial stocks again took
prominent place in the trading. Sugar
advanced fully ~ per cent after early
decline, and Tobacco, after loss of p:
rs cent, rallied ~ per cent. The early
decline was nearly a point in the grangers
and Northern Pacific preferred and exceed
York Central and Southern preferred. All
Of these declines were more than recovered,
sharp net gains being established, which ex-
tended to a point or over In Burlington,
Sugar. Lackawanna, q per cent?; Denver
and RIO Grande preferred, LaClede Gas
preferred. Lake Shore q per cent?, Man
haitian and Wheeling and Lake Erie pre-
ferred.
THE DAYS SALES.
The total sales of stocks today were 27,,-
$50 shares, including: Atchison, 3,730; pre-
ferred. H,144; Chesapeake and Ohio. 1865;
Burlington, 13 9l6; Denver and Rio Grande
preferred. 1l,52l; Illinois Central. $40;
Louisville and Nashville, $3.50; New York
Central, S.221; Northern Pacific preferred,
1850; Reading, 1895: Rock Island, 5,s04;
st. Paul 700; Sutohern Railway preferred
$50; Texas and Pacific, 1850; Union Pa
cific. $685.; Tobacco, 300; Chicago Gas. g.
l46; Sugar, 20.S00; Sugar preferred, $500;
Western Union 6,220; Chicago Great West |
ern SOS.
THE WEEK REVIEWED.
The week in Wall street has been by an |
undated volume Of trading on the stock |
exchange, where the total sales of all the |
stocks on two separate days exceeded that /
o. any previous day of the present move |
ment. The record for days trading in |
bonds was also placed at a new high point. |
Sales of stocks for the week reached total |
of 3.5ao. i12 shares, and the par value of the |
bonds dealt in was s2os45,0oo The course |
of prices was not steadily upward as last \
week. two sharp reactions occurring, one |
beginning Monday afternoon and continu- |
ing through a part of Tuesday, and the /
second showing its effect late on Thursday /
and continuing through the early part of |
tcday's trading. The second reaction de- |
veloped after the outbreak on Thursday OF |
a speculative movement in a lot of obscure |
and low-priced stocks. some of them notori- /
ously without any equity whatever in any
property The grade of intelligence which |
was being applied to speculation was ind;-
Gated by a wider diffused argument for |
selling on Friday because it was Ffday,
and at the same time the thirteenth of the |
month. An incident of Friday was the re-
turn of large amount of borrowed stock /
on which sufficient interest was being paid
to afford a margain TO the holders. This
shook out quite large amount of weekly
margined stock and added TO the decline.
Another interesting development Of the |
week was the fact that foreign investors
are really buying largely of American Sc
curities az the same time as foreign holders
have been selling largely. The selling has
been in the New York market. as has been
obvious from the operations of arbitrage
brokers. There is also reported 10 have
been some buying In New York for for |
eisn account by houses that are not re-
ga:ied as arbitrage brokers. But it has
been evident also that there was an in
creasing demand for American securities in
the London market Owing 10 the deter
miredly pessim!stic attitude adopted :.
English newspapers towards American Sc
curites, the London prce has been almost
constantly below the Nv York parity
which has added 10 the tendency TO foreign
buying in London, at the same time that
there was foreign selling in New York.
The course Of the various international
money exchanges shows increasing reasons
why English financial authorities have
sought TO discourage the buying of Ameri-
can securities Foreign bankers are now
agreed that the balance OF
credits to be settled by gold imports 20 his
country Will be very large. The offerings
Of grain and ctoton bills in the New York
exchange market have caused a constant
fall n both sterling and continental ex-
chang, more particularly the latter. The
TALL in sterling exchange has in fact re-
ceived a temporary check by measures
adopted in he London money market 10
1ivert our demand Tor gold from that m1 - |
ket 10 other ceEters. just es the special &C.
nand on oLndon for gold from Russia,
Austria aAi Japan has been in part divert
I'd to this country during the last few
months. The open market discount rate |
IN London has been raised during the week
from below per cent 10 rs per cent and /,
Is generally believed that the Bank OF Eng
land will advanc its minimum discount rate
TO above per cent next week. Coincident