The Providence news. (Providence [R.I.]) 1891-1906, 1897-09-21
in THE WORLD
OF FINANCE.
The anticipated Reaction
is Near at Hand.
HIGH RATES FOR MONEY.
Wall Street Leaders Look For No
Decided Bear Campag gn.
EFFECT OF HIGH MONEY RATES.

The reaction that has been long an,iei-
pAted has come and stocks all along the list
have registered the declines that 50 many OF
the commission houses have been predicting
As the result there is CONSERVATION among
the outside bull traders, and their efforts
TO find cover IL liable to have a tendency 10
drive prices still lower.
For some days II has beon known that the
market was full OF stocks and that many
houses were carrying about ell that they
could take care of with their facilities After
such AN active bull movement, symptoms OF
this kind are significant, and as the result
many Of the more conservative traders have
been taking profits whore they saw good ones
and have been tightening their account. 1t
was this that was at the bottom of tine de-
cline yesterday, although the cause, a. ex-
planned by the manipuators, was the ruDor
of impending trouble with Spain over tho
settlement Of the Cuban question Although
IL was admitted today that there was little
Gauss to fear such complications tor the pres
ent, the market continued 10 break this morn
ing
II one iinagines that Wall street is looking
tor the end of the bull movement, however,
he will be greatly mistaken. The best pco-
Pile are preparing 20 take IN securities on lie
scale downward, for while foreign exchange
is hanging at fraction above the gold i'm
porting point IL Is the opinion of tho best
authorities that rates will break this week
and that the flow uf gold this way will begin
on large scale. While the market will be
hard 10 bull as long as the money market re-
mains at perlceut. people VITO have onay
looking for Investment are now beginning o
see chances to place II at profitable rates in
different mercantile ventures ami this will
bring about some selling CT investment Sc
curities that would not have occurred IL the
rates OF money hal romaipel low, but let
these rates break and the bu;lish effect upon
,he market would be most pronounced, for
when gold begins 10 come this way the feel
ings of spscuators will be buoycd up and the
market will resume It's upward course There
,rav be wide huctpations and hig reactions,
hut the bullish spirit "a we'll ~ the specula
tive spirit has been too thoroughly aroused
10 make IL possible 20 put an end 10 the bull
market in this of hand manner.
In speaking of the conditions prevailing in
the Now York market today, Sullivan Bros.
~ Co. say:
To-day the market is very much different
chan any that we have had for many weeks.
1t is weak aud there seems q be no bottom
90 IT 10 the onlookor. Those who buy on this
weakness viii receive in return for bis cour-
age \ good round profit during the week. The
decline was brought about on little frmer
money in New York, owing TO the shipment
Of such heavy amounts South and West 10
move the crops. This Is natural feature in
the situation and ought not frighten even the
most timid speculator as il will turn out 20 be
Tor tho best. At this decline the market will
ueet good strong luying power, which will
add moro new strength TO tle present Nc.
Knley movement. Europe has been a buyer
20 inoderate extent the past few days, which
will prove another attractive feature soo1."
But little attention was paid 90 tho Chicago
market today, although the grains and pre-
visions showed strength enough 10 warrant
the prediction of higher prices.