The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-05-02
STOCKS AND BONDS
WEEKS LAST DAY LIKE ALL THE
REST, ONLY MORE so.

by the Announcement of Additional
Heavy Gold Representatives, are Ex-
cessiveIy Light and Only -Four Shares
Show Gains-BoDds Tend Lower-Causes
and Effects of the Gold Moyement Dis
cussed-The Bank Statement.
New York, May 1.-The close Of the week
was marked by the same condition of apa-
thy and almost Of stagnation which has
characterized the market all through the
week. This was accentuated by the fact
that today was a holiday on the London
exchange, and by the definite announce
ment from Boston that the shipment OF
there would be increased to 100000. The
market was left freely in the hands of pro-
fessional traders and was without feature
of general interest. The dullness was &C.
ccmpanied by the heav;ness Of inertia, and
prices sagged even on the limited offerings
Of shares. A few individual properties were
subjected to special unfavorable influences
and the general market showed itself SEN
sitive to the sympathetic effect of these,
though the fluctuations were within a mar
row compass. The average decline for the
day was something over g per cent. The
grangers were rather heavier than the gen.
eral list, the decline in the group, in the
case OF Northwest, extending to q per cent.
The coalers were pretty well held, outside
OF New Jersey Central and Reading, the
former losing IS per cent net, after an mi
tial rise of Il per cent. Tobacco fell only
3 per cent in face of the announcement
Of the Withdrawals from the directory OF a
prominent interest. The largest losses were
in the specialties, point each for Tennes-
see Coal and Iron, and Brooklyn Union
Gas, the former on reports Of prospective
labor troubles. Western Union declined fur
Their Is per cent, to 1878 per cent, and SUI
gar lost IS per cent. The only gains in the
Est were in Leather preferred, on covering:
and Pullman, Lackawanna and Consoldat-
ed Gas each rose u per cent. The market
closed unsettled and irregular.
The total sales of stocks today were 35,-
595 shares, including: American Sugar, g.
200; Burlington, 800: Tennessee Coal and
Iron, 800; Western Union, 500.
REVIEW OF THE WEEK.
The dealers in stocks and bonds have
been occupied all week almost exclusively
with the gold export movement, which has
set in, and have manifested considerable
uneasiness at the proportions assumed by
these shipments. There has been some un-
dertone Of strength In the market, finding
expression IN the small offerings of securi-
ties at the low level. but prices have been
on descending scale, almost without ex-
ception. The gold movement has proved
puzzle TO the best authorities. and the in
ability to account for 1t satisfactorily has
been as much the cause Of the stagnation
i'm stock dealings as any positive epprehen-
sions OF its effects. Last Saturday the
opinion was quite general that no exports
of gold would be made until the prevailing
rate Of exchange. which was s4.SsA. should
rise above that point. The opinion was
based on the fact that on the previous Mon
day short sterling had ruled at s4.sSIz, and
had touched SASSY. without any engage
ments being made for shipment. The ex-
change houses agreed among themselves
that there would not be sufficient profit
shipping gold to make it worth their while
until demand sterling should reach si.Ss&.
Yet today, with demand sterling only just
steady at s4.S74. or 11sc below the profit
able point agreed upon by the exchange
houses, shipment OF sl,000.00O additional
gold is announced from Boston, to be made
spection is necessary to properly estimate
the disputes that have arisen as to whether
the gold is going abroad as a commodity
at a premium or whether it is a legitimate
change operation. The first engagement
on last Saturday was of s977, 900 in gold bars
which is stated to &c. in execution of an
order, the firm receiving a commission for
making the purchase, and the recipients to
pay the expense OF shipping. This was OBJ
viously not a regular exchange operation
the commission and expense OF shipment
being in effect e premium on the gold. The
house which made it, being a party to ex-
change agreement not to ship, gave as an
excuse for the operation that it was not a
regular exchange operation. Yet the next
house TO slip carefully emphasized a state
ment to a representative of the Associated
Press that il was done in the regular or
Ger of business to iquidate an indebted
ness, and because IL was cheaper than ex-
change. How much of this contradiction
was apology and recrimination for breaking
the exchange agreement can only be esd-
mated. The motive for the agreement was
said to be to keep up the price of exchange
until certain stocks in supply were DIS
posed of, and on the other hand TO avoid
the adverse effect of gold exports on some
heavy railroad bonding operations that are
in prcess of completion. The doubt as 10
gold shipments being in response 70 the
exhaustion OF our credit balances abroad
grows out of the extraordinarily heavy eX-
cess of our merchandise exports over I'm
ports for the nine months of the fiscal year,
an excess aggregating 1913 O0o,0tj. Those
who argue that the balance of credits has
turned against US assert that this excess
OF exports must be largely discounted on
account of undervaluations of imports 10
evade customs duties. They point to the
heavy imports Of the last two months in
and the heavy obligations in
Cured for still heavier importations ID
ccne before the new tariff goes :nto eff
feet; the large volume of our securities that
has 10 be paid for; the charges We mus.
pay TO foreigners for our ocean carrying
trade; the credits carried abroad by Ameri-
can travellers 10 be expended there; the
OF foreign capital which was
Faced in loans in the New York money
market. and payment OF dividends and In
terest on American securities still held by
foreigners. All these are said 10 amply &C
count for the wipinS out OF the trade bal
ance in our favor and 10 furnish legiti-
mate exchange demand for gold shipments
Or the other hand. il IS claimed that with
sterling exchange on the basis OF a.S7i. fo-
demand. there IS no profit IN gold ship
ments which must be due 10 the psymen;
Of something equivalent TO a premium
growing out OF q demand for speculation.
Austria has sold a number Of treasury bills
In London which are payable in sod, thus
increasing her claims on London in much
the same way our government did 70 re-
rleaish the treasury gold reserve. Japan
and Russia are also eranest seekers for
gold for currency purposes. Paris exchange
on London. owing 10 heavy sales n Lon
don OF securities held in PARIS That this
demand for gold Is an element n
the explanation OF our gold shipments Is