New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-20
THE FINANCIAL MARKETS.
STOCKS IN LIGHTER DEMAND.
CONDITION OF THE FEDERAL TREASURY
RAILROAD EARNINGS.

Sunday December 1872. m.
The investment demand for securities showeo
a falling off last week, and, owing to higher
money rates. active bull speculation In STOCKS
was checked. recession in values AFTER thirV
days Of practically continuous advance was
neither unexpected nor unfortunate TO weakly
margined holders who always rush In 10 ouy
when stocks are at top prices. the halt IN specu'
lative activity on the long side was naturaiy
depressing, but the general health OF the MARKET
was improved by the elimination Of many weak
accounts. 1t pointed out In this column On
Wednesday morning that technical conditions
warranted a reaction despite the fact that busi-
ness conditions were sound and encouraging.
The stock market rests on substantial OASIS
Reactions are the accompaniment OF all pun
markets. II 1t were not so speculation wouio
soon become demorallZed. The present history
Of the stock market that Is, for the last mohtn
and a half is interesting. Following the depres-
sion in prices resulting from the fall elections.
number Of professional operators. in expectation
of favorable Message from the President. ac-
quired stocks and bid up prices. AT the same
time the enormous amount Of idle capital began
to move into the bond market, and. encouraged
by the pacific tone of the Presidents Message.
by the expansion in business, and the generally
sound conditions throughout the country. re-
newed public interest and public confidence IN
securities until, in the bond market, all records
for activity in the current year were broken,
The hardening Of money rates. due to prepare
tions for January interest disbursements. to re-
newed bull speculation and to the Union IA
cifc payments, came at time when STOCK
prices had advanced from to 10 points above
the low level in November and. anticipating this
hardening Of rates, large operators and those
who acquired stocks at the low level month
ago began to take their profits.
Despite this selling and vigorous bear attacks
on prices. the reaction was light and no serious
break in prices took place. A serious break at
present could only be brought on by some un-
fortunate business or political accident. 1t may
be that the reaction in values Is over. but It
would not surprise the Street If lower prices
prevailed between now and January l. The
heavy demand for bonds appears TO be satisfied
for the present, and the fact that several WELL
known operators in stocks espoused the bear
side in the week induces the belief that further
losses may be made. A decline in prices oelore
the first Of the year will serve 10 increase the
chances or a vigorous bull movement in Janu-
ary The money market has not assumed con-
dtion OF stringency, and. while rates are hAey
to remain firm throughout the rest or the month,
it is not thought probable that there VIII be
squeeze" Al the same time. however, the fact
that money is no longer in condition or ex'
IRENE ease encourages bear operations in stocks.
and IL no new buying power Develops lower
prices may be looked for. Dull markets are In
variably sagging markets in respect to prices.
Expectation Of an immediate return OF easy
money rates is apparently based on the payment
by the Government of 500 100000 Pacific Rail-
road bonds known currency 6s beginning on
December "A The United States Treasury hol!s
against circulation and deposits Slo,ooo'oOo OF
these currency 6s and. as The Financial enron.
icle" pointed out yesterday, only the amount OF
the principal, which is in excess OF the cur
rency issued or in excess Of the deposit for which
II is security, will come out Of the Treasury The
rest Of the redeemed bonds are widely scattereo
and payment will be made slowly. owing 70
the high price Of Government bonds, oankesr
have found It Impossible TO secure them without
paving large premium, and In consequence the
last Union Pacific payment was mace ouecuy
TO the Treasury in cash instead OF 10 depository
banks, the last-named operation requiring Gov
eminent bonds as basis for the deposits In de-
pository banks. The payment referred TO
amounted to SS,500.000, and it is said that the
remaining two payments on Union Pacific pur-
chase account, about S17.OO0.000. will also
be paid directly to the Treasury. On Janu-
airy the heavy interest disbursements Will pre-.
vent a stringency in money rates. but II Is not
at all certain that extreme ease Will return for
some time 10 come.
The demand for money last week from the
South was heavier. and for the first time in
many weeks the movement OF currency showed
a net loss at this centre. The advance in money
rates here has been followed by an easier for
eign exchange market, and, under present con-
ditions Ii seems unlikely that investments In
sterling exchange will show a profit II is not
difficult to find a reason for weakness In the
exchange market but the fact that money rates
abroad have been high enough 10 lend American
balances In foreign centres lends additional in
terest TO the falling in rates this week. II 10
only necessary to look at the figures or foreign
trade 10 find a solution OF the exchange situa-
ton The balance of trade in this country's
favor as represented by merchandise exportssin
excess OF imports. amounted in November TO
the enormous total OF s64.277959. against $780,
OF the year to S2S3. 521 sos. an amount
equalled in the history Of the country The
total value OF merchandise expor's for the year
to November so was 1914 6l2 sos. against i'm
ports Of $69l .091 .09O. The foreign exchange
market reflects a situation most favorable to
this country in respect to its international trade
relations, and shows the increasing strength and
power of the United States the leading COM
mercial and financial power in the world The
countrys industries in most promising
condition While this is the season when
business usually halts the actual volume
OF business as shown by Clearing House
payments gives an increase OF % per cent
over the same week in 1892 the year
OF greatest prosperity. The output Of iron
on December l. was the heaviest ever known in
the history OF trade. The iron industry is con-
sidered the barometer of trade. Further COM
ment would be superfiuous.
The movements OF the chief active stocks and
bonds In the week are given in the following
tables: