The herald., 1897-11-07
ON CHANGE
What Was Done Yesterday on Wall
Street


NEW YORK. Nov 6.-There was some
natural tendency toward recovery in prices
at the opening today, in view of the heavy
and rather excessive drains of yesterday,
and of the governing movement in pro-
gress at the close of the market yesterday.
There had been recovery in prices of
Americans on the London exchange be-
fore the opening here. The opening there
showed declines to the New YORK parity,
but the level was sharply above the New
York level by the time the market opened
here. This encouraged purchases here. and
number of stocks opened over point
higher than last night The London mar
ket for American shares has grown so
narrow and the floating supply of stocks
there is so small that prices are easily sub
ject to manipulation for effect on the OPEN
ing trading here. There seemed ground
for suspicion that this mornings rise in
London was due to some such effort as this
from this side. At all events, the rise
which was thus stimulated here led to
quick taking of profits. and to some fur
ther liquidation of long accountsecarrying
below last nights level. They hardened
again, and eased Off finally, leaving frac-
tional net gains in the majority of cases.
The decrease In surplus reserves shown
by the bank statement probably induced
! some selling, though the change was due
in greater part to the heavy increase In de-
pOSltS anu lne CONSEQUENT raising OF the
legal reserve limits. than to the actual
decrease in cash. The large increase Of
loans, in the face of the heavy speculative
accounts that have been closed out on the
stock exchange during the week probably
has to do with the Union Paclf1c's SALE
This week has seen a total loss of conf
dence on the part of the bull operators
| who have been looking hopefully for the
turn in the tide of reaction on the stock
exchange. On Friday there was heavy
| liquidation Of holdings, and sharp declines
in prices, and so far as appearances go, no
buying support for stocks at any conces-
sion, however violent. The ostensite mo-
tive was fear Of war with Spain on ac-
count of Cuba, intensified by the call from
the chamber of commerce for increased
force to man our coast defenses and by the
| nature of the public utterances of the
United States ex-minister to Spain. The
depression took on a rather artificial and
feverish tone before the day was over, and
absurdly sensational reumors were put in
circulation to keep prices down while
shorts were covered. These Incidents. cou-
pied with todays recovery, are significant
technical indications of a elimination of
marked movement just as heavy buying,
| irregulation of roseate views, sharp rises
| In prices and the stirring up of dead stocks
are the technical concomitants Of the cul-
mination of a sustained rise The declines
" '.o weeh nave reached III pOlnS IN sugar,
5& in New Jersey Central and points
or over all through the active railroads
| and Industrial stocks. Sugars special
weakness has been due to the serious ILL
ness Of the president of the company.
The decline of prices has continued now
practically without interruption of any i'm
portance since the second week in septem-
Der, when the elimination of the rise was
reached. On September 18th the average
price of twenty railroad stocks was about
$685. SO a share and last night the average
price Of the same stocks was S5720
On September 10th the average price of
| twelve leading inhustrials was $55S2 a
share. Last night it was $4573 1t is an
invariable rule that an upward course Of
prices in the market does not terminate
until It has apparently exceeded atself and