Evening star., 1897-01-16
FINANCE AND TRADE
Prices Made Substantial Advances on
Good Volume of Business.
FAILED TO DISCOUNT THE FUTURE
Bank Statement Shows a Big
Gain in Lawful Money.
GENERAL MARKET REPORTS
;peciaI. Dispatch 10 .The Ercnlny STAR.

Special Dispatch to The Evening Star.
NEW YORK, January 16.-The discovery
made during the final hour Of yesterdays
business that the largest interests on the
short side of the market had covered out
standing contracts was not fully appre-
ciated until this morning. Prices opened
up at substantial advances over yester-
days closing and were further advanced
from 1-2 to per cent on q good volume
of business.
The activity Of commission houses was
an important contribution to the general
Situation. and is taken to indicate the near
approach Of public participation In the Sc
curity market.
The advance recorded during the last two
days Is not the result of new arguments.
Conditions have been steadily improving
for weeks. but the prejudice for the short
account has tended to underestimate the
significance OF new developments. Wall
street is proud of its reputation for dis
counting the future. but in the present in
stance has delayed the process beyond the
customary limits.
The scarcity of stocks has long been
commented upon, the tenacity demons
trated in two panic periods being unshaken
by professional drives on the eve of a
business revival. Traders, satisfied that
posite direction justified short selling have
but recently discovered that some one has
always been ready to buy on a scale-down.
Fractional rallies have not attracted real
fzing sales, thereby increasing the hazard
of the short account. Frequent demonstra-
ton of these facts have finally resulted in
the abandonment of improbable devices.
The market is willing to rally and refuses
to recede. Traders admit IL and have, as
originally predicted they would do arrayed
themselves along the line Of least resist
ance. -tl'
The bend market has been an important
factor in the weeks financial develop
ments. Bonds of varying merit have been
In demand at substantial advances over
previous sales, the supply being reduced to
minimum in consequence. Money is seek
ing investment on all sides, and after ex-
fausting other methods must eventually
seek. the stock market Dividend-paying
stocks will be sought as second choice, and
then the low-priced speculative issues will
be considered.
The street has devoted the last two days
to anticipa ting this demand. Early week
prices are likely to be marked up on ac-
count Of the demand inspired by the pub
lished recapitulations of the week. Such
demand will attract realizing by the room.
because of the markets failure to broaden
in proportion to the advance. The main
situation will not be Influenced materially
by tho future attitude of the professional
trader.
The application for receiver of the
Wheeling was announced during the morn
ing, but the recent action of the stock had
fully discounted the action.
The bank statement reflects gain of
over $40, 800 900 in lawful money, principal
ly in 'legals. Loans have been increased
Only $2S3,Wn. indicating a restricted de-
mand from borrowers. The surplus is in
creased IS, 1OSO15, bringing the surplus
holdings of the associated banks up to $52,-
035.OOO.
The strong position of the banks. the low
rates for money and the growing confidence
In future industrial property are strong ar.
guments in favor of Improvement in values
cant demand for coin, the absence of gold
shipments at the season usually attract
Ing an outfc W are matters of public knowl-
edge working in harmony with the move
ment in securities. Fears of congressional
action are no longer a serious menace,
earnings should improve and short sales
for all these reasons should be discontinued
except for fractional profit on the part of
the ventureSome